This is the kind of business where your competition really doesn't matter. They can't take away from your business very easily, as in they can't make deals with certain partners to cut you out and being first to market or having lots of leverage doesn't matter.

Focus in the product. The site is great, although it's hard to know what a gift is at first glance. It almost has the look of an eCard site, which lead me to believe it was those annoying virtual gifts. The first three lines don't mention gift cards, just gifts.

There's a difference, I like the idea of sending someone a gift card with this slick product but not virtual or physical gifts. For me this makes all the difference.

The idea of giving something with physical value but digitally makes a lot of sense. I think this model could be taken further if after some traction you made deals with certain partners to offer more or make it even more unique.