How to Set Up and Promote Gift Cards on Shopify

Gift cards are one of the most underutilised revenue streams in ecommerce. They require no inventory, no shipping, no returns, and they bring new customers to your store who might never have discovered you otherwise. Yet most Shopify merchants either have not enabled them or have buried them so deep in their site that nobody ever finds them.

The gift card market in the UK reached over £7 billion in 2025, and the digital segment is growing at 15-20% year on year. For Shopify stores, gift cards are not just a nice-to-have — they are a strategic revenue channel that compounds over time, especially when combined with smart email marketing.

This guide walks you through setting up gift cards properly on Shopify, customising the experience to match your brand, and promoting them through email campaigns that drive measurable revenue.

Why gift cards are a revenue multiplier

Gift cards generate value at multiple points in the customer lifecycle. Understanding these economics is important because it justifies the effort of setting them up properly.

The financial benefits

• Immediate cash flow. You receive the revenue when the gift card is purchased, not when it is redeemed. This is effectively an interest-free loan from customers.
• Breakage revenue. Industry data shows that 10-19% of gift cards are never fully redeemed. This unredeemed balance is pure profit (though accounting treatment varies).
• Overspend effect. Gift card recipients spend an average of 20-40% more than the card value. A £50 gift card often generates a £65-70 order.
• New customer acquisition. The person who receives the gift card is often a new customer who would not have purchased from your store otherwise. You acquire a customer with zero acquisition cost — the gifter paid for the acquisition.
• Zero fulfilment cost. Digital gift cards require no inventory, no packaging, no postage, and no returns. The margin is essentially 100% minus payment processing fees.

The strategic benefits

• Last-minute gifting. Gift cards solve the "I need a gift right now" problem. They are particularly valuable during peak gifting seasons when shipping deadlines have passed.
• Decision deferral. For gifters who do not know exactly what to buy, gift cards remove the risk of choosing the wrong product.
• Brand introduction. Gift cards introduce your brand to people within the gifter's network — a warm introduction that is more effective than any ad.

Setting up gift cards on Shopify

Step 1: Enable gift cards

1. In your Shopify admin, go to Products
2. Click Gift cards in the left sidebar
3. If you have not created a gift card product yet, Shopify will prompt you to create one
4. Click Create gift card product

Step 2: Configure the gift card product

1. Enter a title (e.g., "Gift Card" or "[Your Brand] Gift Card")
2. Write a compelling description that explains how the gift card works
3. Add your denominations as variants (e.g., £25, £50, £75, £100, £150)
4. Upload a branded product image that looks like a gift card
5. Click Save

Step 3: Customise the gift card notification

1. Go to Settings > Notifications
2. Find Gift card created under Customer notifications
3. Customise the email template to match your brand (more on this below)

Choosing the right denominations

The denominations you offer directly affect gift card sales. Too few options and customers feel constrained. Too many and they suffer decision paralysis.

Recommended denomination strategy

• Entry point: £25 — Low-commitment option for casual gifting
• Sweet spot: £50 — The most commonly purchased gift card denomination across UK ecommerce
• Premium: £75-£100 — For more significant occasions (birthdays, anniversaries)
• High value: £150-£200 — For corporate gifting or luxury purchases

Align your denominations with your average order value. If your AOV is £85, a £100 gift card is the sweet spot because it comfortably covers a typical order and encourages the recipient to add something extra.

Custom amounts

Shopify does not natively support custom gift card amounts (where the buyer enters any value). If you need this functionality, apps like Gift Card Pro or Rise.ai can add custom amount fields to your gift card product page.

Customising the gift card product page

Your gift card product page should feel premium and gift-worthy. A default product page with no imagery or compelling copy will underperform.

Product imagery

Create branded gift card images that look like actual gift cards. Include your logo, brand colours, and the denomination. You can create these in Canva, Figma, or any design tool. Upload a separate image for each denomination variant.

Product description copy

Your gift card description should cover:

• How the gift card is delivered (digital, via email)
• When the recipient will receive it (instantly after purchase)
• What it can be used for (any product on your store)
• Whether it expires (it should not — see FAQ below)
• How to redeem it (enter the code at checkout)

Keep the tone warm and gifting-focused. This is a product page for gifters, not for bargain hunters.

Customising the gift card email template

The email the recipient receives is your brand's first impression. Shopify's default gift card email is functional but bland. Customise it to make it feel like receiving a real gift.

What to customise

• Subject line: "You've received a [Brand Name] gift card!" is better than Shopify's generic default
• Header image: Add a branded header that matches your gift card product images
• Personal message: Ensure the gifter's personal message is prominently displayed
• Gift card code: Make the code large, clear, and easy to copy
• CTA button: A prominent "Shop now" button that links directly to your store
• Redeem instructions: Clear, step-by-step instructions for using the gift card

For help designing effective email templates, our Klaviyo email marketing service includes transactional email design.

Optimising the gift card product page

Treat your gift card product page like any other high-value product page. It deserves proper SEO optimisation, compelling copy, and clear UX.

SEO optimisation

• Title tag: "[Brand Name] Gift Card — Digital Gift Cards from £25"
• Meta description: "Give the gift of [brand category] with a [Brand Name] digital gift card. Delivered instantly by email. Available from £25 to £200."
• URL handle: /products/gift-card

Conversion optimisation

• Add trust badges below the add-to-cart button ("Instant delivery", "Never expires", "Works on all products")
• Include a FAQ section addressing common gift card questions
• Add social proof — how many gift cards you have sold or customer testimonials about the gifting experience
• Show the gift card email preview so buyers know what the recipient will receive

Adding gift cards to your store navigation

If gift cards are not in your navigation, they might as well not exist. Make them visible.

Where to add gift card links

• Main navigation: Add "Gift Cards" as a top-level nav item, especially during gifting seasons
• Footer: Include a permanent link to your gift card product
• Gift collection: Create a "Gifts" collection that includes your gift card alongside gift-worthy products
• Announcement bar: Promote gift cards in your announcement bar during peak seasons: "Last-minute gift? Send an instant gift card"

Promoting gift cards through email

Email marketing is the most effective channel for promoting gift cards. It reaches people who already know your brand and are most likely to gift it to others.

Dedicated gift card email campaigns

Send standalone gift card promotion emails during key gifting moments:

• 2-3 weeks before Christmas (last-minute gifting angle)
• 1 week before Valentine's Day
• 1 week before Mother's Day and Father's Day
• Start of December (early gift shopping)
• Post-Christmas (New Year "treat yourself" angle)

Gift card email content strategy

Your gift card emails should not just say "We sell gift cards." They should solve a problem:

• Subject line: "Still need a gift? We've got you covered" (solves the last-minute problem)
• Hero image: Show the gift card product with festive or occasion-appropriate styling
• Value proposition: "Give the gift of choice — delivered instantly"
• Social proof: "Thousands of happy gift card recipients"
• CTA: "Send a gift card" (not "Buy a gift card" — framing matters)

For advanced email automation, including gift card reminders and follow-ups, see our guide on ecommerce keyword research for content that supports your campaigns, and our Klaviyo services for implementation.

Klaviyo flow integration

Set up automated flows in Klaviyo that promote gift cards at the right moments:

• Browse abandonment flow: If someone views the gift card product but does not purchase, trigger a follow-up email highlighting the benefits
• Post-purchase flow: 2-3 weeks before the customer's next predicted purchase date, suggest buying a gift card for someone else
• Winback flow: For lapsed customers, a gift card offer can be a gentle re-engagement: "We miss you — here's £5 off a gift card for someone special"
• Birthday flow: If you collect customer birthdays, send a gift card promotion 2 weeks before their birthday suggesting they share their wishlist or a gift card with friends and family

Seasonal gift card campaigns

Gift card sales are heavily seasonal, with peaks around major gifting occasions. Planning campaigns around these peaks maximises revenue.

Campaign calendar

• November (Black Friday/Cyber Monday): Offer bonus value — "Buy a £50 gift card, get £10 free" or a free product sample with gift card purchases
• December (Christmas): Ramp up from the 1st with "perfect gift" messaging. After shipping cut-off dates, pivot to "instant delivery" gift card messaging. This is typically the highest-volume period.
• February (Valentine's Day): Romantic gifting angle. Position gift cards as "the gift of choice" for partners who are hard to buy for.
• March (Mother's Day UK): Strong gifting occasion. Combine gift cards with curated gift guides.
• June (Father's Day): Similar approach to Mother's Day, tailored to your product range.
• Year-round: Birthday gifting. If you collect birth dates, trigger automated gift card promotions 2 weeks before each subscriber's birthday.

Gift card upselling strategies

Gift cards should not only be a standalone product — they should be woven into your broader sales strategy.

1. Gift card as a cart upsell

When a customer adds products to their cart, suggest adding a gift card: "Shopping for someone else too? Add a gift card." This works particularly well during gifting seasons.

2. Gift card as a refund alternative

When processing refunds, offer the option of store credit (gift card) instead of a refund to the original payment method. Incentivise this with a bonus: "Accept store credit and receive an extra 10%."

3. Gift card as a loyalty reward

Issue gift cards as rewards for customer milestones: "Thank you for your 5th order — here's a £10 gift card on us." This drives repeat purchases and makes customers feel valued.

4. Gift card in the announcement bar

During gifting seasons, replace your standard announcement bar message with gift card promotion: "Send an instant gift card — perfect for last-minute gifts." This catches every visitor regardless of which page they land on.

For broader customer retention strategies, our guides on ecommerce SEO and SEO performance evaluation cover how to drive the traffic that feeds your gift card sales.

Tracking gift card performance

Key metrics

• Gift cards sold: Volume and revenue by period
• Average denomination: Which values are most popular — adjust your offerings accordingly
• Redemption rate: What percentage of gift cards are redeemed? Low redemption is technically good for profit but suggests poor follow-up
• Time to redemption: How long after purchase are gift cards redeemed? This tells you when recipients become customers
• Overspend rate: How much do gift card recipients spend above the card value? This is your real gift card ROI
• New customer rate: What percentage of gift card redeemers are new customers? This measures the acquisition value of gift cards

Shopify reporting

Track gift card sales through Analytics > Reports > Sales by product, filtering for your gift card product. View outstanding gift card balances in Settings > Gift cards.

Common mistakes to avoid

1. Hiding gift cards in your store

If gift cards are not in your main navigation and promoted regularly through email, most customers will never know you offer them. Visibility is everything.

2. Using default imagery

Shopify's default gift card image is generic. Create branded imagery that makes the gift card feel premium and gift-worthy.

3. Wrong denominations

If your average order value is £85 and your highest gift card is £50, customers cannot buy a full order with it. Align denominations with your AOV.

4. Not following up with recipients

When someone redeems a gift card and becomes a new customer, enrol them in a welcome flow. They need nurturing just like any other new customer.

5. Ignoring seasonal opportunities

Gift card sales spike dramatically around gifting occasions. If you only promote them year-round at the same intensity, you are missing the peaks where 60-70% of gift card revenue is generated.

6. Setting expiration dates

Unless legally required, do not set expiration dates on gift cards. They create negative customer experiences and may violate consumer protection regulations in many UK jurisdictions.

Gift cards are the rare ecommerce product that generates revenue with zero fulfilment cost, acquires new customers for free, and produces a built-in overspend effect. The only question is why more stores do not take them seriously.

Andrew Simpson, Founder

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Setting up gift cards on Shopify is straightforward, but building them into a genuine revenue channel requires strategic thinking about denominations, presentation, and promotion. Invest in branded imagery, customise the recipient email, make gift cards visible in your navigation, and promote them aggressively through email during gifting seasons.

If you want gift cards set up as part of a comprehensive Shopify store build or need help with the email marketing strategy to promote them, our Shopify development and Klaviyo teams handle this end to end. Get in touch to discuss your project.