Home > Articles > How To Make Use Of Shopify Gift Cards | Step-By-Step Instruction

How To Make Use Of Shopify Gift Cards | Step-By-Step Instruction

November 30, 2023
Written and researched by experts at AvadaLearn more about our methodology

By Sam Nguyen

CEO Avada Commerce

Meta Description: Learn how to redeem and use Shopify gift cards on your ecommerce store and add funds from physical or digital gift cards to your Shopify balance.

gift cards shopify
 A straightforward guide on utilizing Shopify gift cards

This article will provide a clear guide on using Shopify gift cards by following defined steps. Whether a physical or digital gift card was received, the gift card can be accessed and applied within the Shopify platform once the redemption process is completed.

Key Takeaways

  • Shopify gift cards provide an effective promotional tool for retailers. They can be issued for free to customers as rewards or incentives to drive future purchases.
  • Shopify’s gift card features and apps streamline management from creation to redemption. Merchants can easily set up gift card products for sale, issue free cards, and view card details.

What is a Shopify Gift Card

A gift card is a prepaid card, typically issued by retailers or banks, that can be used in place of cash at a specific store or business. Gift cards boost brand loyalty through a sense of added value. They psychologically motivate extra purchases and visits, similar to ways bundled deals or members-only pricing aim to make customers feel special. 

gift cards shopify
Gift cards influence shopping behavior the way macro strategies do

Through a digital form, Shopify gift cards distributed via email provide retailers a promotional incentive for customers and serve as a product line consumers can purchase to pay for future orders. Shopify gift cards are commonly used worldwide, with millions of Shopify merchants applying them to their online stores.

Step-by-step on how to add Shopify Gift Cards

  • Step 1: To access gift card tools and settings on Shopify, the first step is to navigate to the Products section of the admin panel. From there, selecting “Gift Cards” will display gift card-related options.

For new stores or users not yet selling gift cards, clicking the button labeled “Sell gift cards,” which will be displayed if none are available, allows setting up and listing gift card products for sale on the store.

gift cards shopify
 Navigate to the Products section of the admin panel
  • Step 2: For stores that have already set up gift card products previously within their Shopify admin, the option to create additional gift cards is labeled slightly differently. Specifically, if a store currently has existing gift card listings, selecting “Create gift card product” rather than “Sell gift cards” allows generating new individual gift card items for sale.
gift cards shopify
 Selecting “Create gift card product”
  • Step 3: When creating a new Shopify gift card product, the necessary details about the gift card must be provided. This includes product name, description, price, and other relevant specifications. 
  • Step 4: Adding each new gift card to a designated collection is recommended to effectively display and organize gift card items for customers to discover on the site. Grouping related gift card products into a collection makes it easier for shoppers to browse together in one dedicated online store area.
gift cards shopify
Adding each new gift card to a designated collection
  • Step 5: After entering all the required product information to generate a new Shopify gift card listing, clicking the “View” option provides a way to preview how the gift card will appear on the live storefront once published.
gift cards shopify
Clicking the “View” option
  • Step 6: Once the initial setup process is complete for enabling gift card offerings, ongoing management and adjustments to gift card features or products remain simple through the Shopify admin area. 
  • Step 7: To access the gift card product and settings menu for future changes, merchants would go to the “Gift cards” section within their Shopify backend dashboard. Selecting “Gift card products” under the gift cards submenu takes you directly to the centralized location for modifying gift card listings and configurations as needed.
gift cards shopify
 Go to the “Gift cards” section within their Shopify backend dashboard
  • Step 8: Once a gift card product has been entirely created and configured within the Shopify admin panel, the final step to list it for sale is to toggle its availability status. Selecting the “Make products available” button will publish the gift card listing and officially launch it as a purchasable item that customers can see on the storefront website.
gift cards shopify
Selecting the “Make products available” button

Shopify Gift Card codes | Issuing and Tracking Guidelines

When a retailer issues a Shopify gift card, they generate a unique code and send it to a customer via email without an upfront payment. The store owner determines the dollar amount the gift card is worth. Then, the recipient can redeem that value balance when purchasing other products on the company’s online store.

gift cards shopify
 Generate a unique code and send it to a customer via email without an upfront payment

Within the Issue gift card dialog box in the Shopify admin, several key sections can be customized for the virtual gift card being issued. 

The initial value field allows inputting the dollar amount the recipient can spend when redeeming the card. The customer’s name or email address must be entered in the Customer section to designate who will receive the gift card. 

Additionally, the Expiration date setting allows retailers to make the card never expire by selecting “Never” or to choose a specific date for when the gift card will no longer be valid. 

An optional Notes field is also available, where internal notes about the gift card can be added that will only be visible to administrators in the Shopify backend and not the customer. Adjusting these parameters offers flexibility in configuring the gift cards individually before electronic distribution through email.

gift cards shopify
 These parameters offer flexibility in configuring the gift cards

After customizing the necessary fields in the Issue Gift Card dialog box, retailers must click “Save” to officially generate the unique gift card code. This is significant because it is the only time the entire code will be visible – it will not be viewable again once the gift card is issued. 

After saving, an email will automatically be sent to the recipient containing the Shopify gift card code. This code, included securely in the automated email, is what the customer can enter at checkout to apply the gift card’s value balance towards a future purchase from the store.

gift cards shopify
 Retailers must click “Save” 

Once Shopify gift cards have been sent to customers, store owners can view information about the distributed virtual cards through the admin dashboard for tracking purposes. They should navigate to Products > Gift Cards from the Shopify admin. 

Clicking on the code of a previously issued gift card (which displays only the last 4 characters for security) will open a new page.

gift cards shopify
Clicking on the code of a previously issued gift card

When editing an already-issued gift card, retailers must update any relevant customer or gift card information as required in the fields provided. This includes appropriately entering details like the recipient’s name/email and verifying or modifying the initial value amount. 

Merchants then select whether to send the gift card after changes by clicking “Save”. This will re-issue the gift card with the newly entered or adjusted settings.

Why use Shopify Gift Cards

Businesses face increasing costs for expenses like wages, rent, utilities, and supplies while having less cash as customers make more budget-conscious purchasing choices. This strains online stores as much as brick-and-mortar shops. 

However, Shopify gift cards provide a free solution for retailers. Customers can buy a gift card now and redeem it later, freeing up immediate cash flow for the business. Stores can also reward customers or incentivize them by issuing gift cards. 

While sold like a product, gift card sales report differently. This report allows tracking gift card sales and accounting for purchases to help offset rising expenses during financially challenging times for consumers and companies.

Shopify Gift Card FAQs

The Shopify Point of Sale (POS) system can use Shopify gift cards. For stores with the Shopify plan or higher, both sold and redeemed, gift cards will be integrated into the POS features.

This allows retailers to process gift card purchases and redemptions right at the physical point of sale and online if they have a brick-and-mortar component incorporating Shopify’s POS capabilities.

Yes, selling physical gift cards using the Shopify gift card feature is possible. Shopify allows stores to purchase physical gift cards directly from their Hardware Stores if located in the US, Canada, UK, Ireland, Germany, European Union, or Australia.
There is a way for customers to access Shopify gift cards if they were misplaced or never received in the original email. Customers can locate the order confirmation email from their purchase if the gift card order has been fulfilled.
The regulations and laws surrounding gift cards differ depending on location. Businesses should consult a local tax or legal professional to ensure compliance with applicable rules in one’s region, such as taxation requirements or duration that gift cards must remain valid.
Social media allows businesses to promote gift card products by sharing links to the items in their online store. Customers can make purchases of gift cards directly through the store link shared on social platforms.
Specific Shopify themes can incorporate recipient details when purchasing a gift card. By including fields for recipient information within the gift card product page, the purchaser can input things like the recipient’s name and delivery address.

Bottom line

In conclusion, Shopify’s built-in gift card features and capabilities effectively allow online retailers to build customer loyalty and drive promotional sales. The ability to offer gift cards across digital and physical storefronts streamlines gifting options. 

Sam Nguyen is the CEO and founder of Avada Commerce, an e-commerce solution provider headquartered in Singapore. He is an expert on the Shopify e-commerce platform for online stores and retail point-of-sale systems. Sam loves talking about e-commerce and he aims to help over a million online businesses grow and thrive.