Author
Tessa Stoppelenburg
Date
October 9, 2025
Category
Informative
For many online stores, returns are a challenge. Especially when it comes to exchanges! But what if you see this as an opportunity to boost your e-commerce business? Besides the fact that a gift card upon return is a customer-friendly method, it makes your return process and exchanges easier and you maintain your sales. Instead of a refund, customers receive a gift card with shopping credit that they can use later. This increases the likelihood of repeat purchases and strengthens customer loyalty.
But how do you best implement a gift card upon refund in your returns process? In this blog, you'll read all about the benefits of returns with store credit for your e-commerce business, what the difference is between gift cards and coupons, and how to easily set this up with Returnless.
In this blog, you'll read more about...
1. What is the difference between a coupon and a gift card?
2. Why resolve a return with a gift card?
3. What platforms support returns with gift cards?
4. How does a return with gift cards work in Shopify and Returnless?
5. What are the options for returns with gift cards?
6. Get started with gift card returns
What is the difference between a coupon and a gift card?
With Returnless, you can easily offer both coupons and gift cards for returns, but what exactly is the difference between the two? Coupons are for one-time use and give discounts on an order or free shipping on a subsequent purchase. If the consumer does not spend the entire amount of the coupon, the credit expires. Gift cards, on the other hand, function as "store credit": an amount that can be spent over multiple purchases. A gift card is therefore the ideal opportunity to optimize your return payments. After all, you don't perform a refund and you can be sure that the customer will buy from you again in the future. For the customer, a gift card is an easy solution for an exchange, for example: they choose the same item in your webshop in a different size or color or even a completely different product. Is there any shopping credit left? This can be used later for a new purchase. And that means a repeat purchase for you: win-win!
Why resolve a return with a gift card?
Gift cards give customers more flexibility with returns and exchanges. But for you as an e-commerce company, gift cards with shore credit also provide benefits: you no longer process exchanges separately, but include them in the same workflow as regular returns and new orders. In addition, with gift card returns you benefit from:
- Easy exchange: with a gift card, customers choose an alternative product at any time and you process an exchange internally the same as a regular return and as a new order.
- Retain sales: if the customer chooses a gift card upon return, a refund of the purchase amount is not necessary and it encourages the customer to buy from you again in the future. This way you not only retain your sales, but also strengthen customer loyalty.
- Higher average order value: to redeem the gift card, the consumer must return to your online store. The purchase amount of a follow-up order is on average about 20% higher than that of the original order. The customer has already spent the amount before, so an additional payment feels less onerous.
Which platforms support returns with gift cards?
Your e-commerce platform should enable gift card creation. Returnless supports gift cards in combination with Shopify and Shopify Plus, Adobe Commerce, BigCommerce and WooCommerce, among others. In addition, we offer an Open API integration that allows you to link your webshop directly to create gift card returns.
Tip!
In addition to returning with gift card, Returnless also loads order data into the digital return form so customers can easily check which products they want to return. Then set up Return rules that allow you to automate returns and encourage the use of gift cards on returns. For example, offer free returns when the customer chooses to return with a gift card.
1. Digital return form: your customers fill in the digital return form and the corresponding order details are retrieved directly from your Shopify backend. This way, customers easily select which products they want to return or exchange.
2. Choose Refund: After selecting the products and return reason, the customer chooses one of your offered refund options: refund, coupon, gift card or repair. Encourage the gift card option upon return by offering free return shipping with this, for example.
3. Create and send gift card: The gift card is created directly in Shopify - or another linked platform - and sent automatically. You set when the customer receives the gift card. Often this happens when the return arrives in your warehouse. But you can also choose to send the email with gift card already when the package is delivered to a carrier.
4. Update stock in Shopify: Thanks to the retrieval of order data, Shopify already knows which product is coming back and can update stock automatically. This way, you always know how many products you have in stock and prevent empty sales.
What are the return options with gift cards?
Our data shows that on average 17% of all consumers choose a gift card with shopping credit instead of a refund. At some webshops this even goes up to 44%. The average shop credit is around €83. This is all turnover that can be retained. It can therefore certainly pay off to invest in a return process that enables returns via gift cards. Let's answer the most frequently asked questions and take a closer look at the possibilities of returning with gift cards with Returnless.
Can you set an expiration date for gift cards?
Of course, you want customers to store in your webshop again as soon as possible. That's why you set a specific validity for both coupons and gift cards in Returnless: 7 days, 1 month, 3 months, 6 months, 1 to 5 years or even without an expiration date. This way, you always maintain control over the number of gift cards in circulation.
Can a gift card be automatically sent to a customer?
Returnless automates your entire returns process, including the creation and sending of a gift card with shop credit. You choose when the email with the gift card is sent: after the customer has returned the package to the package point, or rather when you have checked the return in your warehouse? The gift card is automatically generated and sent once a certain return status set by you has been reached.
How do you encourage a gift card upon return instead of a refund?
In the Return form, customers choose the desired solution for their return: refund, gift card, repair, etc. You can make the gift card return option extra attractive by adding incentives. For example, think of a preferred option or a custom text that emphasizes benefits, such as "€5 extra credit" or "free shipping on return via gift card".
Are you also getting started with gift card returns?
With the integration of Returnless into your e-commerce platform, you can easily set up a returns process that also supports gift card returns. Gift cards are a customer-friendly way to handle returns and strengthen customer loyalty. There is no refund on the original order and the customer is more likely to spend more on a follow-up purchase. And that's not all: research shows that a pleasant return experience encourages consumers to buy from you again which further strengthens your customer loyalty.
In addition, gift card returns make exchanges easier for you and your customers and your return process is automated and streamlined. Gift cards are automatically generated and sent according to your own return rules. All without any manual work.
Want to get started with gift card returns too? Then create a free test account or make an appointment for a product demo with one of our experts. We are happy to help you get started with an automated returns process.
FAQ.
What happens if a customer loses the gift card or does not receive the email?
No worries. Through your e-commerce platform and Returnless, you can see what was created with each return, including the credit, code and expiration date. Easily find the information and resend it to your customer.
Can you exclude releasing gift cards for returned sale items or certain categories?
Yes, you can easily control that with the Return rules in Returnless. There you can set which types of products should not have gift cards created for them. This can be based on product name, product SKU, discount percentage or discount amount of a product. You can even exclude or exclude gift cards for specific customer groups or situations - such as a defective product.
What if a customer places an order with a gift card and then returns it?
The return will then be processed like any other order. Depending on your settings, you can redistribute the returned amount in the form of a new gift card. This way the credit stays within your shop and you keep the customer involved.
Can you analyze gift card usage via Returnless or the web shop platform?
Currently, the best way to track gift card issuance and redemption is through your web shop platform, such as Shopify Analytics. Returnless does allow you to see which returns have been processed with gift cards, giving you insight into the behavior and preferences of your customers.
Is there a limit to the number of gift cards I can spend?
No, there is no limit. You can generate as many gift cards as you want.
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