Whenever a customer selects Gift Wrap for an item in their cart, we use a 7x7x3 gift box. We place the item in the gift box before adding all of the contents to the final shipping container.

Doing this increases the weight of the shipment and minimum required dimensions of the actual shipping container we have to use (compared to not having the item gift wrapped).

The Gift Wrap settings (through Site Settings) does not have the option to call out any shipping weight or dimensions. Due to this, we usually lose money on shipping compared to what the customer paid.

Adding the missing Shipping options of Weight and Dimensions to the Gift Wrap settings would be a huge help and vital inclusion in the next update.