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A Look at Online Gifting Behavior

Posted on 2.11.2014

Online gifting is an emerging trend in the e-commerce space, and new research from Smartgift is shedding light on the effectiveness of this trend as well as the preferences of both online gifters and gift recipients.

The study analyzed the behavior of consumers who purchased gifts online and checked out using Smartgift between Black Friday and Christmas Day. Through Smartgift, customers can purchase gifts while also allowing gift recipients to customize gifts with details like size and color or exchange a gift for a different item before the gift has been shipped.


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The results reveal that by requiring consumers to only enter a recipient’s email address, shopping cart abandonment rates were reduced by 27 percent. Plus, 14 percent of gift recipients on the Smartgift platform actually opted (and paid the difference) for a more expensive gift, which brings in more revenue for retailers. Additional data found that 60 percent of gift givers let recipients select preferences like size, color and style, while 71 percent of recipients exchanged their gift for another item before the order even shipped.

“E-commerce has now truly become ‘emotional commerce,’” said Monika Kochhar, CEO of Smartgift. “How well a brand sells depends now more than ever on its ability to understand the moods, preferences, impulses and financial capacity of each customer who lands at its online store. Online technologies are the enablers of user experience, personalization, omnichannel retail and other innovative strategies that allow brands to deliver the right product at the right time.”

It is also important to note the performance of the Smartgift platform, as the data showed that the average order value for Smartgift checkouts and normal checkouts were the same. When it comes to the gift recipients, 69 percent opened the gift notification email within 2 hours, while 80 percent opened the email within 2 days and 98 percent opened it within 1 week. Moreover, 36 percent of gifts sent through Smartgift during the winter holidays were actually for other occasions, like anniversaries, birthdays and showers, which proves that gifting is a feature that consumers are likely to leverage throughout the entire year.

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