<?xml version="1.0" encoding="UTF-8"?><rss xmlns:dc="http://purl.org/dc/elements/1.1/" xmlns:content="http://purl.org/rss/1.0/modules/content/" xmlns:atom="http://www.w3.org/2005/Atom" version="2.0"><channel><title><![CDATA[BFCM discount math: protect profit before choosing a Shopify offer]]></title><description><![CDATA[<p dir="auto">Choose your BFCM discount from the money left after variable costs, not from the percentage a competitor advertises. A promotion can increase orders while leaving too little contribution to pay for acquisition, overhead or the next inventory purchase.</p>
<p dir="auto">Start with a per-order worksheet, then repeat it for the products you expect the campaign to sell. A storewide average can hide a loss-making bestseller.</p>
<h2>Calculate the room available for acquisition</h2>
<p dir="auto">For planning purposes, use:</p>
<p dir="auto"><strong>Contribution before advertising = collected merchandise revenue after discounts − product cost − shipping subsidy − payment fees − packaging − expected variable return/support costs.</strong></p>
<p dir="auto">Keep taxes collected for remittance separate from merchandise revenue. Use consistent treatment of shipping revenue and costs. This worksheet is a management estimate, not a replacement for your accounting records.</p>
<p dir="auto">Here is an <strong>illustrative example</strong>, not an Eggflow customer result:</p>
<table class="table table-bordered table-striped">
<thead>
<tr>
<th>Item</th>
<th style="text-align:right">Amount</th>
</tr>
</thead>
<tbody>
<tr>
<td>Original merchandise price</td>
<td style="text-align:right">$100</td>
</tr>
<tr>
<td>Revenue after a 20% discount</td>
<td style="text-align:right">$80</td>
</tr>
<tr>
<td>Product cost</td>
<td style="text-align:right">$40</td>
</tr>
<tr>
<td>Merchant-funded shipping</td>
<td style="text-align:right">$6</td>
</tr>
<tr>
<td>Estimated payment fees</td>
<td style="text-align:right">$3</td>
</tr>
<tr>
<td>Packaging</td>
<td style="text-align:right">$2</td>
</tr>
<tr>
<td>Expected variable returns/support allowance</td>
<td style="text-align:right">$4</td>
</tr>
<tr>
<td>Contribution before advertising</td>
<td style="text-align:right">$25</td>
</tr>
</tbody>
</table>
<p dir="auto">If the merchant wants to retain $10 per order before fixed overhead, the planning allowance for acquisition is <strong>$15</strong>, not $25. Recalculate fees and allowances for the actual payment methods and destinations; the fixed estimates above only explain the arithmetic.</p>
<h2>Compare three offers on the same basis</h2>
<p dir="auto">Model a percentage discount, a relevant bundle and a gift or shipping incentive. Compare the final contribution and cash required to fulfill each basket.</p>
<p dir="auto">A bundle is useful when the products belong together and the customer understands the saving. It is less useful when it adds unwanted stock or expensive packaging. A free gift still has a landed cost. A shipping threshold still creates a subsidy that must be funded.</p>
<p dir="auto">Write down the assumptions rather than hiding them inside a spreadsheet total: product mix, expected discount combinations, fulfillment location, shipping zone and return allowance.</p>
<h2>Stress-test the weak baskets</h2>
<p dir="auto">Calculate the outcome for a low-value order, a distant shipping destination, a customer using an eligible second discount, and an order that is later partially returned. These scenarios are a practical way to expose an offer that works only under ideal conditions.</p>
<p dir="auto">Set an operating rule before launch: for example, pause a specific product campaign when its observed acquisition cost exceeds the amount that product can support. The threshold should come from your own economics, not an industry benchmark.</p>
<h2>Check the source data</h2>
<p dir="auto">Shopify's profit reporting depends on recorded product costs. Its gross-profit view is useful, but do not assume it includes every advertising, fulfillment or overhead cost in your business. Reconcile the inputs used for your offer worksheet separately.</p>
<p dir="auto"><strong>Merchant discussion:</strong> Which cost is easiest to overlook in your BFCM offer: shipping, returns, payment fees or acquisition?</p>
<h2>Continue on Eggflow Blog</h2>
<p dir="auto">For a worked example of the additional contribution from a relevant offer, read <a href="https://eggflow.com/blog/shopify-dropshipping/how-to-upsell-on-shopify/?ref=eggflow" rel="nofollow ugc">Eggflow's Shopify upsell guide</a>.</p>
<p dir="auto">If shipping is part of your incentive, compare your worksheet with the scenarios in <a href="https://eggflow.com/blog/shopify-dropshipping/free-shipping-dropshipping-profitable-sales/?ref=eggflow" rel="nofollow ugc">building a profitable free-shipping offer</a>.</p>
<h2>Source and further reading</h2>
<p dir="auto">Platform reference checked October 31, 2026. Calculations and scenarios are illustrative editorial examples.</p>
<ul>
<li><a href="https://help.shopify.com/en/manual/reports-and-analytics/shopify-reports/report-types/default-reports/profit-reports?ref=eggflow" rel="nofollow ugc">Shopify: profit reports and recorded product costs</a></li>
</ul>
<p dir="auto"><a href="/tags/bfcm-2026">Browse the BFCM 2026 guide series</a>.</p>
]]></description><link>https://community.eggflow.com/topic/43258/bfcm-discount-math-protect-profit-before-choosing-a-shopify-offer</link><generator>RSS for Node</generator><lastBuildDate>Sat, 31 Oct 2026 07:58:21 GMT</lastBuildDate><atom:link href="https://community.eggflow.com/topic/43258.rss" rel="self" type="application/rss+xml"/><pubDate>Sat, 31 Oct 2026 05:05:13 GMT</pubDate><ttl>60</ttl></channel></rss>