Revenue and orders · P&L lines 3, 5

Discount rate

How much of your list price you gave away.

Formula

(Price reductions + discount codes) ÷ GMV

Discount rate is price reductions plus discount codes as a share of GMV. Splitting the two matters: a price reduction is a decision you made about the catalogue, a discount code is one a customer applied.

Read it per product. A single line running at 25 percent discount inside a catalogue averaging 3 percent is a pricing decision, not a promotion.

It is one of the two things that separates GMV from gross revenue, the other being shipping revenue.

Related terms

GMV CM1

Revenue and orders

Average order valueRevenue divided by orders. The number per-order costs live off.Previous Return rateThe share of what you sold that came back.Next

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