Check the contribution lost to a discount

A 20% price cut can remove much more than 20% of your contribution.

Start with a $50 product and $5 shipping charged to the buyer. The sample contribution is $20.05. A 20% product discount reduces the product price to $40, while shipping stays $5. Fees are recalculated on the new $45 revenue.

With the same costs, contribution drops to $10.35. Preserving the old total contribution would require 20.05 ÷ 10.35, about 1.94 times as many orders, or roughly 93.72% more orders. This is a contribution comparison, not a prediction of sales.

The multiplier assumes unchanged per-order costs and acquisition cost. More orders may change fulfillment expense, advertising efficiency or fixed costs. A percentage alone cannot tell you whether a promotion is worthwhile.

If either contribution is nonpositive, the positive-order multiplier is not meaningful. The tool does not suggest that increasing the volume of a loss-making order solves the loss. The discounted product price rounds to the nearest cent before fees are calculated.