Set the goal before you launch, not after
The most common mistake is running a discount, watching order volume rise, and calling it a success without asking whether those orders were profitable or whether they would have happened anyway. Decide upfront what the promotion needs to achieve: new customer acquisition, a higher average order value, or clearing a specific item, then measure against that specific goal afterward.
The real cost of a promotion
A promotion's cost is not just the discount percentage. It is the discount, plus the commission that still applies to the discounted order value, plus any platform fee for running the promotion placement itself. Calculating true cost the same way you would calculate delivery profit margin keeps a promotion from quietly turning into a loss-maker.
- The discount given, as a percentage or fixed amount.
- Commission, still deducted from whatever the customer actually pays.
- Any promotion placement fee the platform charges separately.
| Question | If yes | If no |
|---|---|---|
| Was there a stated goal before launch? | Can be measured properly | Treat with caution |
| Was true cost (discount + commission + fee) calculated? | Real margin impact is known | Margin impact is a guess |
| Did it bring in customers who would not have ordered anyway? | Likely worth the cost | Likely just a discount |
What a promotion actually costs, beyond the discount
Get help evaluating your current promotions
A quick before-and-after check
Compare the margin per order during the promotion period against your normal margin per order, using the method from our delivery profit margin guide. If the promotion brought in new customers worth acquiring at a temporary loss, that can still be a reasonable trade. If it just discounted orders from customers who would have ordered anyway, it is a cost with no return.
Promotions that tend to pay back
New-customer-only discounts, since the acquisition cost is at least going toward someone new. Bundle offers that raise average order value even with a discount on the bundle. Limited promotions tied to clearing slow-moving stock, where the alternative is wasted inventory anyway.
Promotions that tend not to
Open-ended discounts with no end date or goal, since there is nothing to measure against. Repeated blanket discounts that train regular customers to wait for the next one rather than order at full price. Promotions never checked against their actual cost after the fact.