Why Digital Gift Cards are Important to your eCommerce Business?

digital git card

People get a headache when it comes to choosing a gift. Even after spending hours choosing one, they aren’t sure whether the recipient would like it or not. This is when Digital Gift Cards provide a helping hand to online shoppers.

Did you know the total amount spent on Gift cards every year is more than $100 Billion?

What is a Digital Gift Card?

A virtual card that can be used for making purchases in your store. Digital Gift Cards, also referred to as e-gift cards or electronic gift cards contain a gift code assigned by the brand and are sent via email.

These cards are very effective when you have an indecisive buyer in your store. Many brands have an option of digital gift cards of various amounts. Sellers decide on a range and terms and conditions for the validity and usability of the card.

How do E-Gift Cards Work?

When sent over the recipient’s email address, they can redeem the gift card on the Brand’s website by applying the gift code on the checkout page or adding the amount to their store wallet. Once applied, the product amount falling under the gift card amount is discounted. E-gift cards can be sent to anyone anywhere all over the world.

How to send a Digital Gift Card?


There are a few simple steps that you have to follow to send a digital gift card:

  1. Select the eGift card option from the menu or category section
  2. Choose your favourite Design or upload a picture to personalize it
  3. Select an amount that you wish to gift
  4. Mention the Recipient’s Name
  5. Add the Recipient’s Email Address where you want to send it
  6. Add a customized text message for your loved ones
  7. Review Order in the cart
  8. The Recipient and sender Get an Email

This is a generalized format that eCommerce companies use when they offer digital gift card features in their store.

Why do millennials prefer sending Gift Cards?

The versatility of gift cards is the main reason for their popularity. In other words, gift card recipients can buy whatever they want from their favourite company with their gift card.

You are relieved of the stress of finding the proper gifts for your family and friends as a car buyer, especially if you have no idea what the recipient would enjoy. most people are pleased when they receive gift cards for the following reasons:

  1. It allows them to purchase their preferred gift for little or no additional expense.
  2. Buyers of gift cards don’t have to worry about giving receivers something they already have.
  3. The gift cards can be used by the recipients whenever they like. Gift cards can be used to shop online or in a local store.
  4. When making a purchase with gift cards during sales, the recipient can buy more products or more expensive items.

Benefits of Digital Gift Cards for Businesses


Consumers love purchasing gift cards as they are cost-effective and most importantly, time-saving. Not only for the people but digital gift cards provide ample benefits to a brand as well.

1. Increase your Sales and Revenue

The foremost benefit of eCommerce gift cards is that they boost your sales. Creditcards.com reports that Gift Cards are the most requested present during the holiday season.

When the pressure is high to search for a perfect gift for the close ones, people switch to the Gift card option. We can say that Gift cards are a boon to last-minute shoppers.

Gift Cards increase sales

Gift cards also help you drive more revenue. The gift card holder will likely spend more than the gift card amount while utilising it. E-Gift Cards are often used as a discount to buy products that have a slightly larger value so that they do not have to pay a heavy amount to purchase the product.

According to the stats by Gift Card Granny, 72% of the customers spend more than the gift card amount while purchasing a product.

2. Boost Brand Awareness

Another benefit of digital gift cards is increased Brand Awareness. It is very much possible that the person receiving the gift card may have never heard of your brand.

A gift card allows them to try out your products and get a better insight into your brand. If the recipient likes your offerings, there are certain chances that he or she will buy a similar gift card for their loved ones, hence boosting your brand awareness.

Digital Gift Cards boost Brand Awareness

Your brand logo in the gift card gets your brand noticed. Moreover, unlike physical gift cards, digital gift cards can be sent from anywhere to any part of the world, which gives your business a global reach.

3. Digital Gift Cards are Convenient and Secure

Unlike conventional paper or physical gift cards that can be lost or stolen, digital gift cards are far more secure and convenient. There aren’t any possibilities of such occurrences. You can send or receive a digital gift card without any hassle and the amount is always safe. It avoids pointless debates about what kind of gift people would want and whether or not they already have it. Before or during the holidays, customers can purchase and mail gift cards directly to their recipients’ home addresses.

The recipient of a gift card can shop for their favourite item in a local store or on the eCommerce website. The special occasions need special celebrations. Purchasing gifts for family and friends for special occasions such as Christmas is unavoidable. As a result, it’s preferable to buy a gift card depending on the recipient’s preferences.

It won’t take much time or effort, and you’ll be able to determine the worth of your gift by allocating a certain amount to each gift card

4. Gain Customer Loyalty

Adding to the benefits of gift cards is they help you earn customer loyalty. To make customers stick to your brand in the long run, earning their loyalty is important. And you can earn that loyalty only when you can keep them happy and satisfied.

For the customers who did not find a pleasing experience with your products or want to process a return or a refund, a gift card, in such a situation, can ease things up and help you retain customers, improving customer retention.

Best time to offer digital gift cards?


Gifts make a connection between the sender and the receiver. It is a token of love. You don’t need an occasion to make your friends and family feel overwhelmed. Here comes the digital gift card in the picture.

If it is difficult to find the right gift for them, give them a gift card. You can consider gifting on their birthday, anniversary, mother’s day, father’s day, or any other occasion. The holiday season is another best occasion for showering love!

Gift Card Manager by KnowBand

KnowBand, one of the leading e-commerce service providers, offers the Gift Card Manager module to the merchants having their store set up on the PrestaShop, OpenCart, Magento or Magento 2 platform.

The module adds a gift card section on your website and offers pre-existing customizable gift card templates for multiple occasions like Halloween, Christmas, New Year, Halloween, Mother’s Day, Birthday, Anniversary,  etc. It also lets you add new gift card templates for any desired occasion so that you do not miss out on any important event.

With the help of our Gift Card module, you can create gift cards of different values so that a customer can purchase a gift card as per his/her budget. The gift card can be set for multiple currencies hence allowing customers to send a gift card to their loved ones living outside and enabling the recipient to shop in their local currency.

Try out the Gift Card Manager module today!

PrestaShop Gift Card Manager addon

OpenCart Gift Card Manager extension

Gift Card Manager extension for Magento 2

Final Word

By looking at the growth of digital gift cards in the eCommerce market, the availability of the gift card option for online shoppers can scale up your sales.

I hope the above-mentioned benefits of gift cards have provided you with good enough reasons to add the Gift Card section on your website. Finding trouble setting up the gift card section? Try out our Gift Card Manager. If you need any assistance with the module, you can reach out to us at support@knowband.com

Manish Barthwal

Manish Barthwal

Following his passion for writing, Manish has been providing value to his readers through his write-ups. He predominantly writes for the e-commerce industry. Apart from writing, Manish's love for cricket is unmatchable. He is an ardent cricket fan.

2 thoughts on “Why Digital Gift Cards are Important to your eCommerce Business?

  1. Hi I like the idea of gift cards . I am running Christmas sales online with 10 vendors and I have a website coming up by 15th December . I will like to introduce this.
    Please I need more understanding, To enable me use it well.
    Cecilia (CECYS)

    1. Go ahead, Cecilia. Wish you luck. Try adding gift cards to your website and do let me know how helpful they turned out for your business.

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