GWP Promotion Definition

A Gift With Purchase promotion gives shoppers a complimentary product when they complete a qualifying purchase. The gift can be anything from a full-size product to a branded merch or a digital reward. Unlike price-based promotions, GWP campaigns don’t reduce the price of the main item, they increase perceived value instead.

How GWP promotions work?

Common triggering conditions for GWP promotions include:

• Spend threshold: “Get a free tote bag when you spend $75+.”
• Product-purchase trigger: “Buy any serum, get a free mini moisturizer.”
• Category trigger: “Free socks with any footwear purchase.”
• BOGO-style GWP: “Buy one, get a gift.”
• Tiered GWP: Higher spend tiers unlock better gifts.

Why use GWP promotions?

Retailers choose GWP promotions for two main reasons: they increase the basket size and promote new products without margin erosion.

• ‍Boost AOV without discounting – shoppers will often add extra items to hit the threshold, no margin cuts required.
• ‍Introduce customers to new SKUs – a GWP lets customers try new products risk-free, improving cross-sell potential.‍
• Move excess or seasonal inventory – slow-moving products become strategic rewards.‍
• Elevate brand perception – a “free gift” feels generous and premium, even when the cost of goods is low.

Examples of GWP promotions

• Sephora offering a free travel-size mascara with a $50 spend.
• Kiehl’s giving a deluxe mini with purchase of any serum.
• Free tote bag with a new seasonal collection.
• Free socks with purchase of running shoes.
• Free phone case with purchase of a new device.
• Free extended warranty on high-value items.

How to set up a GWP promotion?

1. Define the trigger

Choose whether the gift unlocks via spend threshold, product, or category.

2. Add constraints

Essential for profitability and logistics:

• Inventory limits
• Channel restrictions
• Date availability
• Customer eligibility
• One-per-customer or tiered rules

3. Decide how the gift appears

Options include:

• Automatically added to cart
• Code-based redemption
• Post-purchase reward (email-delivered)
• Loyalty-points-based unlock

Best practices for GWP promotions

• Select gifts with high perceived value and low cost of goods.
• Use tiered rewards to encourage higher spending.
• Add real-time eligibility messaging in the cart.
• Cap inventory and enforce first-come-first-served logic.
• Personalize the GWP offering based on customer segments.
• Combine GWPs with loyalty programs to increase repeat rate.
• Track incremental revenue, not just redemption rate.