Protecting E-Commerce Margins During Sales
In the hyper-competitive world of e-commerce, capturing a customer's attention often requires a flash sale or promo code. But digital discounts can scale out of control quickly. Our E-Commerce Discount Calculator ensures you don't accidentally bankrupt your DTC brand during your next promotional blast.
Promo Codes and Ad Spend
If you are running Facebook or Google Ads to drive traffic to a discounted product, your margins are getting squeezed from two sides: the advertising cost and the lower sale price. Use our tool to find out how many extra units that ad campaign needs to sell to be considered profitable.
The "Free Shipping" Illusion
Many shoppers prefer free shipping over a percentage discount. Consider raising the base price slightly and offering free shipping rather than heavily discounting the product. Test this pricing methodology using our Pricing Calculator to see which offer leaves you with more net cash.
Frequently Asked Questions (FAQ)
A popular strategy is offering 10% off in exchange for an email address. You trade a small percentage of margin for a customer you can market to for free forever. However, you must know your initial Customer Acquisition Cost (CAC).
If you offer a 20% discount AND free shipping, your margins will plummet. Always calculate your fully landed cost (including fulfillment and shipping) before setting your max allowable discount parameter.