Blue Ribboned Gift

A Blue Ribboned Gift is a container item which can be opened to loot a gift item.

Source
Using a to wrap an item creates a Blue Ribboned Gift  container item which can be mailed or given to others.

Limitations

 * 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.

Warning
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.