Harnessing the Power of Gift-Giving to Transform E-commerce: Meet Zest
By Alex Ingram and Jeremy Feinstein, co-founders of Zest
It’s an exciting time for makers, artists, and entrepreneurs of every kind as opportunities to launch online stores are limitless. Shoppers can now buy everything from glow-in-the-dark toilet paper, craft beer and cars to bespoke perfume, engagement rings and leashes for chickens — all in a few taps or clicks. But while it’s never been easier to start an e-commerce brand, it’s also never been tougher to grow one.
The increasingly crowded field has made it harder to stand out. Apple’s privacy changes have also reduced the effectiveness of ad targeting and opportunities to create personalized experiences. Entrepreneurs need more help than ever to grow their brands, earn new customers, and nurture those customer relationships.
That’s why we’re thrilled to introduce Zest.
Zest is a platform that helps brands grow by harnessing a surprising secret weapon hiding in plain sight, one whose potential has long been undervalued and untapped — until now.
The secret weapon? Gifting.
We believe that the gifting experience will play a massive part in the future of e-commerce. Zest is on a mission to transform not only how people send gifts, but how brands acquire and engage customers through gifting.
The Business of Gifting
E-commerce was on the rise when a global pandemic changed nearly everything about the way people live, work, and shop. That rise became an explosion: Americans spent a record $1.7 trillion online over the last two years — a 55% increase in digital spending from two years before the pandemic.
Sending an online gift isn’t a new concept; e-gift cards have been around for decades, but they haven’t seen much innovation. They’re a flexible option for gifters, but they can be a forgettable one for recipients.
In fact, e-gift cards are so forgettable that billions of dollars go unused every year in the U.S. It’s a bad experience for gifters and recipients, but it’s an especially terrible deal for brands that never got their products into recipients’ hands or the chance to turn them into loyal customers.
Gifting is one of the fastest-growing segments in e-commerce, but existing solutions don’t serve the brands and buyers who depend on this activity. Gift cards are impersonal, checkout flows aren’t optimized, and brands have no idea who’s receiving their gifts.
Zest flips the script on this with a brand-centric platform that enables e-commerce sellers to leverage gifting for happier customers, greater transparency, and a cost-effective channel for reaching new fans.
How Zest Works
Zest enables brands to embed a “Send as a Gift” button on their product or cart pages. Gifters who click on the button choose a digital greeting card, add their own message, and deliver the gift to the recipient via text or email. What results is a win-win-win situation:
- Gifters instantly share something they love with others — a present with more meaning, intention, and personal connection than the old standby epitome of convenience: the gift card. They don’t need to know the recipient’s details, like mailing address, size, or favorite color, which removes nearly all of the friction to send a gift.
- Recipients enjoy unprecedented control over the gift they receive. They can enter their own shipping address, swap sizes or products before shipping, and even send a quick thank-you note to the gifter.
- Brands fully own the gifting experience and are able to add branded digital touch points throughout the gifting journey and beyond. When integrated with their customer engagement tools, Zest helps brands deepen connections with existing customers and create new ones with each recipient in a way that lasts long after the gifting moment. Unlike the typical e-commerce gift card, where the recipient remains a mystery to the brand, Zest turns every single gift into an opportunity to build long-term loyalty.
While most e-commerce tools used to convert customers feel transactional — ads, loyalty programs, gift cards — Zest is an experience that feels warm, authentic, and memorable. It’s an experience that not only surprises and delights consumers, but it’s one that helps small- and medium-sized businesses thrive.
Who We Are
The two of us have been friends and collaborators for nearly a decade, starting when we both worked at Flatiron Health, a company dedicated to improving cancer treatment and advancing research. While cancer research and e-commerce are worlds apart, we were excited to build in a new category, specifically one that helped small business owners succeed.
We saw the nearly limitless opportunities for today’s entrepreneurs to start direct-to-consumer brands, but also the immense challenges that were getting in their way. As we talked to passionate brand owners who had launched stores selling everything from chocolate to bath products to coffee, we discovered a clear common thread. They all were searching for new ways to connect with existing customers and find new ones.
Then came our lightbulb moment: We identified an underutilized but crucial piece in the e-commerce toolkit — gifting. Given its potential for customer acquisition and an upgraded customer journey, we believe it is exactly the channel they need now more than ever.
Since that moment, we’ve assembled an incredible team. Christine, Shreya, Liz, Taylor, and Sam have built products at companies like Walmart.com, Slack, Amazon, Route, Drip, and Soundstripe. Each one of us has seen firsthand how better software can materially improve people’s lives and we are excited to share the power of gifting with the world.
In addition to publicly announcing Zest, we’re excited to announce our seed round with more than $4 million in funding, led by M.G. Siegler at GV with participation from BoxGroup, Character, Operator Partners, Bungalow Capital, and Company Ventures. Their belief in our vision has taken Zest from an inspired idea to reality.
Get to Know Zest
Brands can add Zest to their store in as little as 10 minutes. Visit our website to schedule a demo and learn more. We’re also hiring; check out our open roles!
This is just the beginning of the Zest journey. Keep an eye out for some exciting announcements as we continue on our mission to help online businesses and their customers gift well and prosper.
