From the blog of Mark Coker, founder of Smashwords:
Smashwords yesterday released a new ebook gifting feature.
Because Smashwords books are available in multiple ebook formats, our books are readable on any e-reading device.
Simply click to the book you want to gift, and click the “give as gift” button. The shopping cart will ask you for their name and email address. The lucky recipient will receive an email with a hyperlink that allows them to claim their gift. If they’re already logged in to their Smashwords account, the book will appear in their Smashwords Library. If they don’t have a Smashwords account, they’ll be prompted to register.
Prior to this new feature, authors were unable to purchase their own books. One advantage of the gifting option over Smashwords Coupons is that the recipient, assuming they’re already a Smashwords member, can simply click the hyperlink in the email and the book is loaded into their Smashwords Library. No purchase or checkout process necessary.
In the next few weeks, we’ll add new features based on your feedback. We’ll also integrate prompts into purchase confirmation emails and review reminders so your fans are encouraged to purchase your book as a gift for their friends.