Shopify gift cards serve two purposes that most store owners don't fully use. First, the obvious one: customers who want to give your products as a gift but don't know the recipient's preferences. Second, the less obvious one: a tool for managing returns, goodwill gestures, and influencer gifting without a cash outlay.
How to enable gift cards on Shopify
Gift cards are enabled per product in Shopify. To create one:
- In Shopify admin, go to Products → Gift cards
- Click "Add gift card product"
- Set the denominations (£25, £50, £100 are standard; add custom amounts if useful)
- Add a description and image - a branded gift card design converts better than the default
- Set the gift card expiry - UK consumer law limits expiry restrictions, so check current regulations before setting an expiry date
- Save and publish
Once published, the gift card appears in your store like any other product. Customers purchase it, receive the code by email, and the recipient uses the code at checkout. The balance deducts from the order total automatically.
Gift card denominations: what to offer
Match your denominations to your typical product price points. If most of your products are £30–£80, offer £25, £50, and £75 denominations. If you have high-ticket items, add £100 and £150.
A "custom amount" gift card (where the buyer enters any amount) is available via Shopify's gift card product - enable this as an additional denomination if your price range is wide.
Don't offer denominations so small that they barely cover shipping, or so large that they're rarely purchased. Review your order data and set denominations that align with realistic gift spend for your category.
How gift card accounting works in Shopify
Gift cards create a liability when sold - you've received money but haven't delivered a product yet. Shopify tracks this correctly: gift card sales show as "gift card" transactions in your payment reports, and redemption shows as a payment method on the order.
One thing to confirm with your accountant: gift card revenue is typically recognised at the time of redemption, not at the time of sale. If you sell significant gift card volume, the timing difference may affect your reporting.
Unredeemed gift card balances (balances that are purchased but never used) are called "breakage" and may be recognisable as revenue after a certain period depending on your jurisdiction. UK regulations apply here - check the current rules if gift cards become a meaningful revenue line.
Using gift cards as a marketing tool
Beyond direct sales, gift cards have several marketing applications that most Shopify stores don't use:
Returns alternative. When a customer wants to return an item you can't resell (opened, used, or outside return window), offering a store credit gift card instead of a cash refund retains the spend within your store. Some customers prefer store credit - it feels like a bonus for a future purchase rather than a refund.
Influencer and gifting. Sending a gift card to an influencer or content creator for them to spend on products they'd genuinely use produces more authentic content than sending specific products. They choose what resonates with them - and the content reflects that authenticity.
Employee gifting. Bulk gift card sales to businesses purchasing them for employee rewards or incentives. If you sell products that suit corporate gifting, consider a "corporate gift card" page with minimum quantity and bulk discount enquiry flow.
Seasonal promotion. "Give a £50 gift card, get a £10 bonus for yourself" - gifting promotions that reward the buyer alongside the recipient drive gift card sales while also creating an incentive for the giver to return and use their bonus.
Promoting gift cards in your store
Most stores that have gift cards don't surface them prominently. A customer looking to buy a gift for someone has to know to look for gift cards - they won't find them if they're buried in a "Gifts" collection no one visits.
Surface gift cards:
- In your navigation under a "Gifts" or "Gift Cards" link, particularly in the run-up to Christmas, Mother's Day, and Father's Day
- On the homepage during seasonal peaks - "Not sure what to get? Give them a gift card"
- In your abandoned cart email for high-ticket items - "Buying as a gift? Consider a gift card instead"
- In the confirmation email for gift purchases - suggest a gift card for next time
