Gift cards: the most under-merchandised SKU on your store

How to position gift cards to drive 4–7% of holiday revenue without cannibalizing.

Gift cards are typically 1–2% of revenue. They should be 4–7%. Most stores under-merchandise them and miss the highest-margin product on the catalog.

Three changes that move it

• Featured nav slot in November. Tier 1 placement, not buried in footer.
• Email-only delivery option. Reduces production friction for last-minute purchases.
• Pre-filled denominations at brand-aligned amounts ($25, $50, $100, $250) plus "custom".

The unlock

Customer-funded loyalty. Customers who give gift cards become repeat senders. Average customer who buys 1 gift card buys 2.7 more in the next 24 months.

Gift cards are the only product with zero returns and zero shipping cost.