Gift Cards Meaning & Examples
Definition
Gift cards are prepaid cards or digital codes that customers can buy and use as a form of payment in an online store. They can be given as presents or used by customers themselves for future purchases.
Good or Bad?
Good, when they are easy to buy, send, and redeem.
Bad, when redemption is complicated, limited, or full of restrictions.
Why does it matter?
Because gift cards drive sales, attract new customers, and encourage repeat visits.
They also provide upfront cash flow for the business, even before products are shipped.
Common Mistakes
- Making gift cards hard to find on the store.
- Not allowing partial use of a gift card balance.
- Setting too many restrictions, discouraging customers from using them.
- Not supporting digital delivery for instant gifting.
How to Improve It?
- Offer both physical and digital gift cards.
- Make the process of redeeming gift cards simple and fast.
- Allow customers to check their remaining balance easily.
- Promote gift cards during holidays and special occasions.
Recommended Plugin
Coupons & Add to Cart by URL for WooCommerce by WPFactory.
While not a dedicated gift card plugin, it allows stores to create custom discount links and coupons that can work alongside a gift card strategy.
Real-World Example
A WooCommerce fashion store offers digital gift cards during the holiday season. Customers buy them for friends and family, introducing new shoppers to the store and boosting long-term sales.
Related Terms
FAQs
Do gift cards increase revenue?
Yes. Many customers spend more than the value of the card, increasing average order value.
Are digital gift cards better than physical ones?
Digital gift cards are more convenient and instant, but physical cards work well in blended online and offline businesses.
Can WooCommerce handle gift cards?
Yes. WooCommerce supports gift cards through extensions and plugins that make issuing and redeeming them easy.
