Can I Use Discount Codes In Place of Gift Vouchers in Shopify?

redheaddigitalApps, Ecommerce, Shopify

Shopify Gift Card Vouchers or Discount Codes

It may be tempting to use the discount code function in place of gift cards just to ‘get-by’ but this isn’t ideal for a number of reasons.

Balances
A discount code does not track balances. If a customer has a $100 code, spends $75, then that’s the end of that code’s life. You have to set up an additional code manually for any balance.

Multi-use
Multiple gift cards can be used on the checkout at once whilst only one discount code can ever be used at a time.

Shipping
Gift cards are applied to the final order total, including shipping (if any).

Accounting
When you sell a gift card, you’re actually creating a debt that you owe a customer, and your outstanding gift card total should be represented as such in your balance sheet. This isn’t accounted for if you set it up as a discount.

Get Gift Card Functionality

The Shopify plan and above all come with native Shopify Gift Cards.

But if you’re on the Basic plan then investigate if Rise.ai app will work for you. It’s US$19.99 pm (for up to 100 orders a month) and you get a lot of features for your money including Gift cards/e-gifts, incentives etc, it will add quite a few new options that you can get creative within your marketing.

Summary
You might be able to get away with using discount codes but it’s 100%, not a gift card and you shouldn’t treat it or promote it that way.