When Facebook.com launched its Gifts service almost a yearago, it was focused on physical gifts, but now it plans to shift to digitalgift cards, with only its own multi-merchant card available as a physical gift.

Facebook Gifts is getting a majorredesign that will end sales of physical gifts. It will now focus on suggestingyou buy friends digital gift codes or Facebook’s omni-Gift Card credit to spendat brands and local businesses they Like, which now get their own Gifts landingpage. These two types of Gifts made up 80% of sales, cost less to ship andsupport, so it makes sense to invest in them in the rollout coming the next fewweeks.

The move reflects the convenience of digital gift cards. Italso shows the power of promotion. Facebook prompts users to give friendsdigital gifts on the friend’s birthday, but does little to suggest its physicalgifts. It may also be that the digital natives on Facebook are more inclined toopt for digital delivery over a physical item that takes more time to fulfill.

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