WeChat, the popular messaging app developed by Tencent, has introduced a beta phase for a new gifting feature crafted to simplify sending gifts, just in time for the major upcoming holidays. This innovative feature is now available for almost all product categories on WeChat stores, with the significant exceptions of jewelry and education items. Products eligible for this new feature must be priced below RMB 10,000, approximating USD 1,400. For merchants, this feature is enabled automatically and indicated through a special label on product detail pages. This allows users to identify and interact with participating products easily.
Simplifying the Gifting Process
User Experience and Functionality
The user experience for this new gifting feature is designed to be intuitive and user-friendly, cementing its applicability and ease of use. To send a gift, users simply select an eligible product, click the gifting button, and perform the transaction on a gift confirmation page. Not only can senders choose a specific gift design and review the product price, they can also select a recipient directly from their contact list to finalize the payment. This streamlined process eliminates the need for senders to know the recipient’s shipping address or design preferences, making the gifting process significantly more convenient and discreet.
Once the gift has been sent, the recipient receives a notification and is prompted to enter their shipping address. They can also switch to a different product variant of equal value before confirming receipt of the gift. However, there are specific restrictions: recipients cannot forward the gifts to others, and senders are unable to cancel or modify the gift within the first 24 hours of sending. If the recipient does not accept the gift within 24 hours, the order is automatically canceled, and the payment is refunded. This system ensures a smooth transaction process while maintaining adequate control for senders and security for recipients.
Beta Testing and Future Availability
At present, this gifting feature is confined to a select group of users in its beta testing phase with promising expectations for broader availability. According to reports from 36Kr, this feature is anticipated to be rolled out to all WeChat users by Christmas week. For merchants, this new feature offers significant opportunities to boost sales, especially for products that are frequently given as gifts. By eliminating the need to inquire about recipients’ preferences or addresses, WeChat’s gifting feature leverages its expansive social network to make gifting as effortless as sending a digital red envelope. This convenience could lead to an increase in the success rate of gifts, subsequently expanding the customer base for merchants.
Merchant Opportunities and Operational Integration
Enhancing Sales and Customer Base
According to a snack merchant interviewed by 36Kr, the holiday season is expected to see a considerable influx in demand for gift boxes, thanks to this new feature. The merchant expressed excitement about the diminished barriers to sending gifts, which they believe will draw in new customers and lead to increased sales. From an operational standpoint, this gifting feature seamlessly integrates with existing merchant systems. On the merchant order page, once the sender has paid for the gift, the order status is marked as “payment pending” until the recipient provides their shipping address and accepts the gift. At that point, the status changes to “shipment pending,” indicating that the gift is ready to be dispatched.
Handling Orders and After-Sale Processes
Merchants are only notified of payment and shipping details after the recipient confirms acceptance of the gift, ensuring the transaction’s completion. Notably, gift orders do not include buyer information, and currently, merchants cannot blacklist users via the gifting system. Any preexisting blacklisted users are excluded from both sending and receiving gifts. Regarding after-sale processes, gift orders are handled similarly to regular orders, encompassing shipping insurance with the recipient as the beneficiary. If the recipient initiates a return or requests a refund, they are entitled to compensation per the order’s shipping insurance policies. Merchants preferring to opt out of this gifting feature can disable it via platform settings, but this action must be applied at the store level, as individual products cannot be excluded from gifting eligibility.
Strategic Advancements in WeChat’s E-Commerce Ecosystem
Leveraging Social Networking Capabilities
For WeChat and its Chinese counterpart Weixin, this gifting feature marks a natural evolution from the highly successful red envelope functionality, aiming to ease social transactions. Much like how the practice of digital red envelopes became increasingly engaging and widespread, this new product gifting feature further simplifies and enhances the gifting process while retaining a thoughtful and social touch. Historically, WeChat’s e-commerce strategy has centered on group-based transactions and peer-to-peer product recommendations. This new gifting feature reinforces this dynamic by embedding deeper functionality into the platform, allowing users to leverage social relationships in innovative ways.
Differentiating from Competitors
This development forms a key component of Tencent’s broader strategy which aims to set WeChat’s e-commerce ecosystem apart from competitors like Pinduoduo, which tend to focus on pricing and variety. In August, Tencent enhanced the Channels’ store feature, transforming it into WeChat stores, thus allowing merchants to share product information seamlessly across various in-app touchpoints like public accounts, live streams, mini programs, and search results. Introducing the gifting feature dovetails neatly with this effort, contributing to a more cohesive and integrated e-commerce ecosystem within WeChat, further cementing its unique positioning in the marketplace.
Driving User Engagement and Network Effect
Viral Potential and User Engagement
WeChat, the widely-used messaging app developed by Tencent, has rolled out a new gifting feature in its beta stage, designed to streamline the process of sending gifts just ahead of the major holiday season. This innovative feature is now accessible for nearly all product categories available on WeChat stores, with notable exceptions being jewelry and educational items. The products that are eligible for this new gifting capability must be priced under RMB 10,000, which is roughly equivalent to USD 1,400. For merchants, this feature is activated automatically and highlighted with a special label on the product detail pages. This labeling makes it easy for users to identify and engage with products that participate in this feature. By enabling this function, WeChat aims to enhance user experience and boost sales during the busy holiday period. For shoppers, this means they can effortlessly send gifts directly through the app, simplifying the process and making holiday shopping more convenient and efficient.
