Total discount amount as a percentage of gross revenue—measures how much of your potential revenue is offset by promotions.
| Metric | Definition |
|---|
| Discount Amount | Total dollar value of all discounts applied |
| Gross Revenue | Total revenue before discounts and refunds |
| Metadata | |
|---|
| Type | Percentage |
| Data Source | Shopify |
| Aggregation | Ratio |
Example
Your store generated $237,000 in gross revenue with $18,960 in total discounts during a promotional period:
| Metric | Value |
|---|
| Gross Revenue | $237,000 |
| Discount Amount | $18,960 |
| Discount Gross Rate | 8.0% |
How It Works
This metric divides total discount dollars by gross revenue, then multiplies by 100. It shows what portion of your potential revenue is being given away through promotions. Higher rates indicate aggressive discounting that erodes gross margins.
When to Use
| Scenario | Action |
|---|
| Monitoring margin erosion | Track discount rate trends to prevent margin creep |
| Evaluating promotions | Compare pre and post-campaign to measure discount escalation |
| Benchmarking periods | Identify seasonal patterns in promotional intensity |
| Customer segment analysis | Compare against NC and RC Discount Gross Rates for segment insights |
| Metric | Relationship |
|---|
| Discount Amount | Dollar value used in numerator |
| Gross Revenue | Baseline revenue in denominator |
| NC Discount Gross Rate | New customer segment breakdown |
| RC Discount Gross Rate | Returning customer segment breakdown |
