"How do I allow customers to add gift messages, and information about the gift recipient?"

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Short Answer

There are a couple ways to do this. At the order level (meaning one message, and one recipient for the entire order) or at the item level (meaning each item can have a gift message). Doing it at the order level makes the most sense in most cases. It is much easier to manage, and much easier for the shopper.

Detailed Explanation

To do it at the order level, you can change the label in the checkout "special instructions" to say whatever you prefer, such as "gift message (optional)". To edit this label, go to SETTINGS > Checkout Settings.

To do it at the item level, you just need to add an Attribute to the item. The attribute type should be text. Please review our articles/videos Attributes to learn more about creating such Attributes.