Discounts as a percentage of gross revenue—measures how much of your potential revenue is given away through promotions.
| Metric | Definition |
|---|
| Discount Amount | Total dollar value of all discounts applied |
| Gross Revenue | Product revenue before discounts and refunds |
| Metadata | |
|---|
| Type | Percentage |
| Data Source | Shopify |
| Aggregation | Ratio |
Example
Your store earned $80,000 in gross revenue during a holiday promotion with $12,000 in total discounts:
| Metric | Value |
|---|
| Gross Revenue | $80,000 |
| Discount Amount | $12,000 |
| Discount % | 15% |
How It Works
Discount % divides total discount dollars by gross revenue (before discounts and refunds). A high percentage indicates heavy promotional reliance, which erodes margins and can train customers to wait for sales.
When to Use
| Scenario | Action |
|---|
| Evaluating promotions | Compare pre and post-campaign to measure discount escalation |
| Protecting margins | Set thresholds to prevent discount creep (e.g., stay under 10%) |
| Segmenting customers | Compare new vs returning customer discount % |
| Benchmarking channels | Identify traffic sources over-reliant on discounts |
| Metric | Relationship |
|---|
| Discount Amount | Numerator: total discount dollars |
| Gross Revenue | Denominator: baseline product revenue |
| Discount Per Order | Average discount per transaction |
| Net Revenue | Revenue after discounts and refunds |
