ecom Discount
Profit Calculator
What a customer pays per order, on average.
What it costs you to produce or buy the product.
Shipping, payment processing, packaging, marketing spend per order.
The percentage off you plan to give customers.
Orders you usually get in that period without promotion.
How many orders you expect the discount to generate.
Discounts don't always lose money
weak retention does
A discount isn’t inherently a bad decision, it depends on what happens after the first order. If a customer buys once and never comes back, you gave away margin for nothing. If they come back and buy a few more times, that discount was your cheapest acquisition cost.
LTV Before Discount
Before running a promotion, calculate what an average customer is worth over 12 months, not just the first order. A $10 profit cut on order one can easily return $80 in repeat revenue if your retention is working.
Retention System First
Discounts bring customers in. Retention keeps them. That means knowing when to follow up, what to cross-sell, when a customer is about to run out of product, and when to reactivate someone who's gone quiet.
Create Repeat Customers
The real ROI of a discount campaign isn't in the orders it generates. It's in how many of those customers you convert into loyal buyers. That's where email marketing and other retention channels pays for itself.
