How to Set Up Gift Cards on Shopify.

Table of Contents

1. Introduction
2. Understanding Gift Cards and Their Benefits
3. Setting Up Gift Cards on Shopify
4. Promoting Your Gift Cards
5. Conclusion
6. FAQ

Introduction

Imagine a busy holiday season when customers flood into your online store, eager to purchase the perfect gifts for their loved ones. Now, what if you could capture even more sales during this peak period—without having to stock extra inventory? Enter gift cards, a simple yet powerful tool that not only boosts your cash flow but also enhances customer engagement. In fact, studies show that over 60% of consumers prefer digital gift cards over traditional discount offerings.

Setting up gift cards in your Shopify store is not just a trend; it's a strategic move that can significantly impact your business's bottom line. With the rise of e-commerce, having the ability to sell gift cards can help you tap into new customer segments, promote your brand, and provide a seamless shopping experience. This post will guide you through the process of setting up gift cards on Shopify, from creation to promotion, while ensuring you maximize their potential for your business.

By the end of this article, you’ll understand how to create gift cards, manage their sales, and employ effective strategies to drive customer loyalty and sales. We’ll cover everything from setting up the gift card product in your Shopify admin to tips for using gift cards to enhance your marketing efforts.

Let’s embark on this journey to discover how your business can benefit from the selling of gift cards on Shopify and take your customer engagement to new heights.

Understanding Gift Cards and Their Benefits

Before diving into the setup process, it’s essential to grasp why gift cards are a valuable asset for your online store. Here are some key benefits that gift cards offer:

1. Boosted Cash Flow

One of the most immediate advantages of selling gift cards is the instant cash flow it creates. Customers pay upfront for gift cards, allowing you to generate revenue without needing to ship products. This can be especially beneficial during slow sales periods or in preparation for busy seasons.

2. Attract New Customers

Gift cards act as a gateway for new customers. When existing customers purchase gift cards for friends or family, they are essentially introducing new shoppers to your brand. This can lead to increased traffic and sales as these new customers redeem their gift cards.

3. Higher Average Order Value

It’s common for gift card recipients to spend more than the card's value when making a purchase. This phenomenon can significantly boost your average order value and enhance overall sales.

4. Enhanced Customer Loyalty

Offering gift cards can foster a sense of loyalty among your customers. Many consumers prefer receiving gift cards over traditional discounts, viewing them as a more thoughtful and flexible option. This preference can lead to repeat business as customers return to use their cards.

5. Easy to Manage and Fulfill

Digital gift cards eliminate the need for physical inventory or shipping, making them easy to manage. Once purchased, the gift card is delivered electronically, streamlining the fulfillment process.

Setting Up Gift Cards on Shopify

Now that we understand the advantages, let’s dive into how to set up gift cards on Shopify. Follow these steps to ensure you create an effective gift card system within your store.

Step 1: Activate Gift Cards in Your Shopify Admin

To begin selling gift cards, you first need to activate this feature in your Shopify admin. Here’s how:

1. Log into your Shopify admin dashboard.
2. Navigate to Products > Gift Cards.
3. If you haven't activated gift cards yet, click on Activate gift cards.

Once you’ve completed this step, you’re ready to create your first gift card product.

Step 2: Create a Gift Card Product

Creating a gift card product is a straightforward process. Here’s how to do it:

1. From your Shopify admin, go to Products > Gift Cards.

2. Click on Add a gift card product.

3. Fill in the required fields:

   • Title: Give your gift card a name, such as "Holiday Gift Card" or "Birthday Gift Card".
   • Description: Add a brief description that explains the gift card's purpose and any special promotions.
   • Media: Upload an attractive image representing the gift card.
   • Denominations: Set the values for your gift cards (e.g., $25, $50, $100). You can add multiple denominations based on your target audience.
   • Search Engine Listing Preview: Customize how your gift card appears in search engine results.
   • Sales Channels and Apps: Specify where the gift card will be available for purchase (e.g., Online Store).
   • Organization: Optionally, you can add tags or categorize the gift card for better organization.

4. After filling in all the necessary fields, click Save gift card product.

Step 3: Publish Your Gift Card

Once your gift card product is created, it’s essential to make it available for sale. Here’s how to publish it:

1. From the Gift Cards section, click on View gift card products.
2. Select the gift card you wish to publish.
3. In the Sales channels section, toggle the visibility to make it available on your chosen channels.
4. Save your changes.

Step 4: Managing Gift Card Sales

After your gift cards are available for purchase, it’s crucial to manage them effectively. Here are some essential management tasks:

• Track Sales: You can view your gift card sales report in your Shopify admin. This report includes data on sold gift cards, customer names, and total sales.
• Monitor Outstanding Balances: Keep track of active gift cards and their remaining balances to ensure your records are accurate.
• Update Expiration Dates: If necessary, you can update the expiration dates for individual gift cards through the product page.

Promoting Your Gift Cards

Simply creating gift cards isn’t enough; you need to actively promote them to maximize their effectiveness. Here are some strategies you can employ:

1. Seasonal Promotions

Capitalize on holiday seasons and special occasions by promoting gift cards as the ideal gift choice. Create seasonal marketing campaigns that highlight the convenience and flexibility of gift cards.

2. Social Media Marketing

Use your social media platforms to showcase your gift cards. Share visually appealing images and engaging content that encourages followers to purchase gift cards for friends and family.

3. Email Campaigns

Send targeted email campaigns to your customer list, promoting your gift cards. Highlight the benefits of gift cards, especially during peak shopping seasons.

4. Loyalty Programs

Incorporate gift cards into your loyalty program. For instance, reward loyal customers with gift cards on their birthdays or for reaching specific milestones.

5. Collaborations and Bundles

Consider collaborating with other brands for cross-promotions. You can bundle gift cards with other products or services, enticing customers with added value.

Conclusion

Setting up gift cards on Shopify is a strategic move that can enhance your e-commerce operations in numerous ways. By enabling gift card sales, you not only open new revenue streams but also attract new customers and foster loyalty. From activating gift cards in your Shopify admin to promoting them effectively, implementing these strategies will help you leverage the power of gift cards to boost your business.

As you embark on this journey, remember that Praella is here to support you. Whether you need assistance with user experience and design, web and app development, or data-driven strategies for continuity and growth, our team is ready to help you achieve your goals. Explore our services here.

Embrace the potential of gift cards, and watch as they transform your sales and customer relationships!

FAQ

How can I make my own gift cards for my business?

You can create your own gift cards using Shopify’s native gift card feature. Simply follow the steps outlined in this guide to set up your gift cards.

Do businesses make money on gift cards?

Yes, businesses can generate revenue through gift card sales. Often, customers will spend beyond the gift card’s value, increasing overall profits.

Do gift cards help small businesses?

Absolutely. Gift cards provide immediate cash flow and can help small businesses attract new customers without the need for inventory.

How much does it cost to make gift cards?

Offering digital gift cards through Shopify’s native app is free of charge. You can create and sell gift cards without any additional costs.

What should I include in my gift card descriptions?

Your gift card descriptions should include the purpose of the gift card, any special promotions, and instructions on how recipients can redeem them. Additionally, consider mentioning any expiration dates or terms of use to ensure clarity.