A Wrapped Gift Package is a container item which can be opened to loot a gift item.
- Only one item can be wrapped by each sheet of Wrapping Paper.
- The item to be wrapped must be non-stackable.
- One item of a stackable item cannot be wrapped.
- If an item can never be stacked, it can be wrapped.
- The item to be wrapped must be non-soulbound (nor any other status that causes the item to be non-transferable).
- This is because Wrapping Paper is not intended to provide a loophole in transferability.
- The wrapped gift cannot be auctioned; no lootable item can be auctioned.
- Until the wrapped item is opened, the original wrapped item is concealed.
- The inventory icon for the wrapped item is a wrapped package in one of six color combinations.
- The holder of the gift package can open the package without looting it to look inside at the original item.
- Turn autoloot off, or hold down the shift key if autoloot is on.
- There is no way to tell what is inside without looking.
The existing Wrapping Papers in WoW all stack 10 high before use. The created gift packages do not stack. Only Wrapping Paper of the same type will stack.
A common scam was to wrap up a worthless item and COD it to a player, hoping that they would accept and send back a large amount of gold for a poor quality item. This was fixed in a patch so players cannot mail wrapped items anymore.  However, scammers now just send the wrapping paper itself now.
The Wrapping Paper talk page has a discussion of how the current limitations on what can be wrapped by Wrapping Paper items are not fundamental and could change.