Shopify gift cards: a guide for online retailers

Vouchers and gift cards are an attractive solution for increasing customer loyalty and sales in your Shopify shop. They offer a flexible way to retain customers and attract new customers. At the same time, a Shopify voucher increases the likelihood that recipients will buy additional products when redeeming it.

With Shopify, you already receive everything you need to offer gift cards in your shop in the Shopify Basic plan. But how do you set them up effectively and what accounting aspects do you need to consider? In this article, we will give you a comprehensive overview of the standard functionalities of Shopify vouchers and gift cards and explain how you can use physical vouchers in your shop. We will also introduce you to some useful apps that will make your voucher management even more efficient.

Shopify standard function for vouchers and gift cards

Shopify's standard function allows you to easily and effectively integrate vouchers and gift cards into your online shop. With this integrated solution, you can create gift vouchers in different amounts that customers can purchase. Each Shopify voucher automatically contains a unique voucher code that can be redeemed on future purchases. These vouchers are managed centrally in the Shopify admin area, where you can both view existing vouchers and add new ones.

It is important to note that the vouchers are always issued in the shop currency. This means that if your shop supports multiple currencies, vouchers cannot be offered in specific amounts such as 10 euros or dollars, but must be issued in the specified shop currency.

Overall, the standard function ensures that the redemption of gift vouchers remains uncomplicated during the checkout process. The simple handling of gift vouchers not only increases customer loyalty, but also boosts sales by offering vouchers as an ideal gift.

Create vouchers with Shopify: Step-by-step guide

To create vouchers in your Shopify shop, start in the Shopify admin area. Here are the most important steps you should follow:

1. Navigate to Vouchers:

• Step 1: Open your Shopify admin area.

• Step 2: Click on "Products" in the left menu.

• Step 3: Select "Gift vouchers" in the drop-down menu. This will take you to an overview of all existing gift vouchers in your shop.

2. Add voucher product:

• Step 4: Click on "Add voucher". You have two options here:

  • Option 1: "Issue gift voucher" - This option allows you to send a voucher code directly to your customers.

  • Option 2: "Add gift voucher product" - Select this option so that your customers can add gift vouchers to their shopping basket and purchase them independently in your online shop.

3. Create voucher product:

• Step 5: After selecting "Add gift voucher product", an input screen will open where you can enter all the details about your gift voucher.

• Step 6: Fill in the required fields:

  • Title: Enter an appealing title for your gift voucher.

  • Description: Add a detailed description explaining the purpose and benefits of the gift voucher.

  • Photo: Upload an appealing image that visually represents the gift voucher.

  • Voucher values: Enter the different values your customers can choose, e.g. €10, €25, €50, €100.

• Step 7: Use the additional options that you already know from creating a new product:

  • Category: add the Shopify voucher to a suitable category to make it easier to find.

  • Tags: Set relevant tags to make searching and filtering easier.

4. Fill in the input mask:

• Step 8: Make sure that all information is entered correctly and attractively. A detailed and appealing description as well as high-quality images can arouse the interest of your customers and promote sales.

• Step 9: Check all entries again before saving the gift voucher.

5. Make the gift voucher visible:

• Step 10: To ensure that your customers can easily find the gift voucher, we recommend including the corresponding product page in the navigation or on the homepage of your shop in a clearly visible position. This increases visibility and the likelihood that customers will buy the gift voucher.

Integration of vouchers via the Shopify Giftcard API

The integration of vouchers via the Shopify Giftcard API opens up extended options for customising and automating your voucher offers. With the API, you can create, update and manage vouchers programmatically, which is especially beneficial for larger shops or customised solutions. You can develop specific voucher promotions or campaigns that are automatically triggered based on customer behaviour or seasonal trends.

In addition, the API enables the seamless integration of voucher functions into external systems or apps to further improve the user experience. Through the API, you can also retrieve specific data on voucher usage, providing valuable insights into your customers' purchasing behaviour and helping you to develop targeted marketing strategies.

Shopify apps for creating vouchers

Using Shopify apps to create and manage vouchers can significantly improve your business. These apps allow you to integrate customised gift voucher solutions that go beyond Shopify's standard functionalities. In this section, we will introduce you to three apps that can help you create gift vouchers.

Giftnote Gift Messages & Cards

Giftnote Gift Messages & Cards offers a comprehensive solution to create and manage Shopify gift cards. This app is easy to install and allows you to send branded SMS and email gift messages, enhancing the gifting experience for your customers while increasing your sales. Giftnote also offers integration options with several leading apps such as Klaviyo, Rebuy or Yotpo.

Pricing:

• Installation of the app is free of charge. However, additional fees may apply.

Gift Card Hero

Gift Card Hero is a comprehensive solution for creating and managing gift cards in your Shopify shop. This app offers a variety of features to enhance the experience for your customers while increasing your sales. The all-in-one gift card tool enables the purchase, dispatch and redemption of gift vouchers. The app also supports physical gift cards and can be integrated with Shopify POS.

Pricing:

The app is free to install. However, there are paid plans that offer advanced features:

• Free: 2% of the total gift card value (min €9.99/month, max €49.99)

• PRO: $19.99/month (€10 discount), incl. POS tools and API access.

• Shopify Plus: $39.99/month, incl. all PRO features and fixed fee without usage fees.

Gift Card Pro

Gift Card Pro is a versatile and comprehensive solution for creating and managing gift cards in your Shopify shop. The app offers numerous features to improve the shopping experience for your customers and increase sales at the same time. The app is compatible with Kalviyo and Shopify POS, allowing for seamless integration with your existing system. It allows you to customise, plan and efficiently manage your gift cards, enabling you to build long-term customer relationships and attract new customers.

Pricing:

• Basic: $9.99/month, 2.5% total gift card value

• Standard: $29.99/month, 1.5% total gift card value

• Business: $89.99/month, 1% total value of the gift card

• Corporate: $499.99/month, 0.5% total gift card value

All plans offer a 14-day free trial.

Advantages of online redeemable vouchers

Online redeemable vouchers offer numerous advantages, both for you as a retailer and for your customers. The most important advantages of offering online vouchers include:

• Convenience and flexibility: customers can redeem digital Shopify vouchers where and when they want. This offers them maximum flexibility. They do not have to physically visit a shop to redeem the voucher, which is especially appreciated in today's digital world.

• Increased sales: Gift vouchers are often an impulse purchase product that can increase sales. Customers who buy vouchers as gifts bring new customers into the shop who may also buy other products.

• Environmentally friendly: Digital gift vouchers are more environmentally friendly than physical gift cards as they do not require printing or shipping. This saves resources and reduces your company's environmental footprint.

• Personalisation options: With online redeemable vouchers, you can add personalised messages, videos or designs that make the shopping experience special for the recipient. This increases customer satisfaction and strengthens the emotional connection to the shop.

• Security: Digital Shopify vouchers are more secure than physical cards as they cannot be lost or stolen. They can be personalised with unique codes that allow them to be redeemed only once and prevent misuse.

Digital vouchers therefore offer a variety of benefits that can both increase customer satisfaction and improve business results. By implementing vouchers in your Shopify shop, you can take full advantage of these benefits.

How to use physical vouchers in your shop

If you want to sell and redeem physical gift vouchers in your shop, it's important to enable the 'Issue digital or physical gift vouchers' setting in the Shopify POS app. Physical gift vouchers are pre-made plastic cards that are labelled with pre-assigned codes. You scan these codes at the time of purchase, making the process easy and convenient for your customers. In supported countries, you also have the option to select your desired design in the Shopify hardware shop and order customisable physical gift vouchers. This allows you to integrate customised branding while ensuring a professional look and feel that provides your customers with a high-quality shopping experience. With these measures, you can effectively implement the use of physical gift vouchers in your shop and further strengthen customer loyalty.

Accounting challenges with gift vouchers

Accounting for gift vouchers poses particular challenges, especially with regard to provisions. If you sell a gift voucher worth €100, you will recognise €100 in revenue, but you will also have to create a provision for the same amount, as the voucher will be redeemed at a later date.

This means that the customer does not have to pay again, which means that this income is not immediately recognised in your turnover. The correct accounting treatment is usually done by creating a liability item in the balance sheet that reflects the future obligations from the vouchers sold. As soon as the voucher is redeemed, the provision is reversed and the income can be recognised as revenue. Accurate accounting in this area is essential in order to comply with legal requirements and ensure the financial transparency of your company.

Success stories: Latori customers and their voucher solutions

One example of the successful implementation of voucher solutions is our customer Wunschgutschein. Here, an innovative system is used that makes it possible to efficiently manage chargeable voucher motifs and various voucher values. In the backend of Wunschgutschein, there is a separate product for each chargeable motif, which shows the price for the motif (product voucher motif) including 19% VAT. In addition, there is a separate product for each voucher value (product voucher value) as a variant without VAT.

Both the motif and the voucher value are separate products with individual SKUs. These products are linked via product metafields, whereby there must be a 1:1 relationship between a voucher and a motif. This sophisticated system enables the company to offer a wide range of personalised and flexible voucher solutions that meet both the requirements of the shop and the expectations of the customers.

The implementation of such customised voucher solutions by Latori has not only optimised the management and sale of vouchers, but has also significantly increased customer satisfaction. This shows how a well thought-out voucher strategy can lead to a win-win situation for retailers and customers.

Conclusion

Offering vouchers and gift cards in Shopify is an effective way to strengthen customer loyalty and increase sales in your Shopify shop. With Shopify's standard features and the use of specialised apps such as Giftnote Gift Messages & Cards, Gift Card Hero and Gift Card Pro, you can integrate and manage customised voucher solutions in your shop.

By implementing online redeemable vouchers, you benefit from numerous advantages such as convenience, increased security, environmental friendliness and versatile personalisation options. They offer an attractive solution to support both seasonal and long-term marketing strategies and maximise the potential of your Shopify shop.