Discount Code versus Gift Cards

GordonChin90
New Member
1 0 0

Hi there,

Recently my company has worked with a 3rd party to to provide survey participants a $30 off voucher for them. We had decided to use discount codes instead of issuing gift cards, because:

1. Gift cards cannot be mass-generated unless using a third-party app (we have 500 participants)

2. Gift cards seem to be considered as monetary value in-lieu of customer payments, and we are not sure of our country's (Singapore) laws regarding gift cards.


However, using discount codes means that customers have to pay for shipping if their order is above $30 (which is our free shipping rate). In light of this, we decided to create another free shipping rate (for orders that are $0), so that customers who add e.g. $29 worth of products into cart and enter the discount code, their order value will be $0 and they can enjoy free shipping. 


A limitation for this however, is that customers who add $30 and more worth of products into cart will ultimately have to pay for free shipping, unless their cart value is $60 and above (using the $30 discount code, their cart value will be $30 and above, effectively qualifying for free shipping once again).


Using discount codes has caused some dissension amongst the company's directors and they are pushing for the use of gift cards, which by nature is considered store/monetary value, will allow them to negate $30 inclusive of shipping fees. 

I'd like to know if the usage of gift cards should be advised here? I understand that gift cards is a sensitive issue as it is somewhat considered as a form of currency, which might not be best to be used as a voucher. 

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Tira
Shopify Staff
Shopify Staff
1001 61 164

Hey, @GordonChin90.

Tira here.

This is a great question and thanks for taking the time to provide all of these details, I really appreciate it and it’s very helpful. I can definitely see why you and your directors would want to switch away from using discount codes and I am here to help.

From what I am reading, you are looking for a way to give your survey participants $30 to use on your store, and free shipping. Is that correct?

If I got that right, then I recommend keeping the free shipping code that you have now, and creating gift cards for your survey participants. This will allow your customers to add their gift card, and the discount code to checkout so that they can receive free shipping and a credit on their order.

Here is a screenshot from my test store that shows what this would look like at checkout:

 30-07-t9uxo-d9imo

In this screenshot, both a discount for free shipping, and a gift card for $10.00 have been applied to the total, which removed any shipping fees and applied a credit of $10.00 to the order. 

Gift cards are a special type of product and it’s value can be used as payment on your store. I am not aware of what laws in Singapore apply to gift cards, I recommend reaching out to your local authority to take a look. Here is our help doc with information on adding/updating gift cards, changing settings, issuing free gift cards, managing them, along with how to redeem them and our FAQ: Selling gift cards.

That’s correct that you will need to use a third-party app developed by a third-party developer from our App Store to create gift cards in bulk. The Shopify Admin only has the capability to create gift cards one by one. If you want to give this a try, I recommend checking out our help doc with the steps to issue free gift cards.

If you’re open to using a third-party app, I recommend looking at the Gift Cards & Loyalty Program app by Rise .ai. As this is a third-party app, I recommend reaching out to the third-party developer should you have any questions or comments by using the contact information listed underneath the “Support” section of the app’s page.

I would love to know if this meets your needs and your thoughts!

Tira | Social Care @ Shopify 
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HKJ
Explorer
61 4 6

@GordonChin90 wrote:

Hi there,

Recently my company has worked with a 3rd party to to provide survey participants a $30 off voucher for them. We had decided to use discount codes instead of issuing gift cards, because:

1. Gift cards cannot be mass-generated unless using a third-party app (we have 500 participants)

2. Gift cards seem to be considered as monetary value in-lieu of customer payments, and we are not sure of our country's (Singapore) laws regarding gift cards.


However, using discount codes means that customers have to pay for shipping if their order is above $30 (which is our free shipping rate). In light of this, we decided to create another free shipping rate (for orders that are $0), so that customers who add e.g. $29 worth of products into cart and enter the discount code, their order value will be $0 and they can enjoy free shipping. 


A limitation for this however, is that customers who add $30 and more worth of products into cart will ultimately have to pay for free shipping, unless their cart value is $60 and above (using the $30 discount code, their cart value will be $30 and above, effectively qualifying for free shipping once again).


Using discount codes has caused some dissension amongst the company's directors and they are pushing for the use of gift cards, which by nature is considered store/monetary value, will allow them to negate $30 inclusive of shipping fees. 

I'd like to know if the usage of gift cards should be advised here? I understand that gift cards is a sensitive issue as it is somewhat considered as a form of currency, which might not be best to be used as a voucher. 


Why don't you just assign a free shipping code to the customers who received the vouchers?

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