Profit math

Discount Margin Basics

Understand how discounts affect revenue, selling fees, and order-level profit margin.

Last updated: June 14, 2026

Discounts reduce revenue immediately, but most costs do not fall at the same speed. Product cost, packaging, shipping, and many fixed fees remain the same after the promotion.

Before running a discount, compare the normal profit with the discounted profit. If the promotion also needs ad spend, calculate margin after both the discount and the expected acquisition cost.