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Written by Michal Dobrzynski Seller Success Specialist
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11 Dec 2020  |  Product

How to implement gifting in your checkout

3 minute read

Do generous customers want to purchase your software as a gift for a friend or relative? Gifting is easy to implement with Paddle Checkout.

With Paddle’s Revenue Delivery Platform, it’s easy to implement gifting functionality in your checkout. 

In this post, we’ll take you through the steps for creating this flow:

  1. The gifter purchases the product and reaches a custom success page thanking them.

  2. Upon that purchase, a fulfilment webhook is called.

  3. Upon receipt of that webhook, you create a coupon using our Coupon API, which will be sent to the gift recipient.

  4. On the gifting date, you email the gift recipient with the coupon and the redemption details.

  5. The lucky recipient redeems their gift on our checkout, for free.

Before we get started, there are 2 requirements to take into account:

  • The product you set up via our dashboard must use the "webhook" fulfilment option, as you'll be delivering the product to the gift recipient rather than the person who paid for it

  • You'll need to handle the emails to the gift recipient yourself

The buyer experience

You need to collect a couple of details before you call the Paddle checkout:

  • Date: The date when the gift recipient should get notified and receive their present.

  • Gifter details: The name and email of the gifter.

  • Recipient details: The name and email of the lucky gift recipient.

In this example, we'll use the Paddle.js overlay checkout (although the same logic would apply to an inline checkout).

You're going to collect these details in your own form, then hand them over to our checkout via the Paddle.js passthrough: this will allow you to process them in your fulfillment webhook in the next stage.

We simply use a couple of lines of Javascript to pass the form data to the checkout when the customer clicks "Buy now".

We also pass the gifter's email to the checkout to save them from entering it twice.

The gifter will then proceed to the Paddle checkout, and pay for the software as usual.

Order fulfilment via webhook

Once the customer has finished paying for the product they want to gift, you will receive a notification from us using the webhook, whose payload will include your pre-checkout custom fields.

Find out more about using and verifying webhooks.

Creation of a personalised coupon

The gift recipient will receive a unique, one-time coupon – allowing them to redeem your product without having to pay.

Rather than spending time creating the coupons ahead of time, use our Coupon API to dynamically create the coupon, once you've received the webhook.

You can learn more about our Coupon API here.

This API call accomplishes a couple of things:

  • You ask for the coupon to start with the "GIFT" prefix, and let Paddle handle the rest of the coupon's name e.g GIFT7DHDLDL.

  • You discount 100% of the product.

  • You restrict its use to one-time, for the specific product that your customer bought.

  • You mark it as part of the "Gift" group, which will neatly file it in its dedicated section in our dashboard.

The API will return the coupon code.

Thank the gifter

You can email the gifter a thank you note – or use a custom post-checkout confirmation page, using our post-checkout API.

This allows you to display a confirmation page that you can entirely design and customize, displaying for example:

  • A receipt (this can have a really nice touch with a personal thank you note - or even a surprise discount coupon to reward them for being generous).

  • The details of the gift recipient.

  • When they will receive their present.

Deliver the gift

Send an email to the gift recipient, at the date specified by the gifter, explaining why they're receiving a free product and including the redemption instructions and their unique coupon.

You can use a transactional email service such as Postmark or SendGrid.

We recommend directing them to a simple redemption page that only displays the gifted product, to minimize any friction or confusion.

To save them the need to copy/paste you can even go one step beyond and tag with your actual coupon at the end of the link to your website: we will automatically match that coupon to any checkout opened on that page, as long as the coupon is available for that product.

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