Compare percentage and fixed-amount discounts

A fixed discount and a percentage discount behave differently as basket value changes. Compare them on representative orders rather than assuming the larger-looking headline is better.

The examples below explain the arithmetic. They do not predict customer response or establish the right promotional price for your store.

Find the point where the offers match

Consider a ₹100 discount and a 10% discount. They are equal at a ₹1,000 eligible basket.

At ₹600, the percentage saves ₹60 while the fixed offer saves ₹100. At ₹1,500, the percentage saves ₹150 while the fixed offer still saves ₹100.

That difference affects both customer savings and retained contribution.

Compare final prices

For a ₹600 basket, the final amounts are ₹500 under the fixed offer and ₹540 under 10% off.

For a ₹1,500 basket, they are ₹1,400 and ₹1,350 respectively.

Use the final amount in the cost calculation. Do not evaluate margin from the original basket price after a discount has reduced revenue.

Include variable charges

If a fee depends on the amount charged, recalculate it for each offer. Keep fixed charges and product costs separate.

Do not assume that every fee falls by the same amount as the discount. Use the actual applicable schedule and transaction base.

The examples here omit such charges until you add them explicitly, so they are not complete profit calculations.

Define the eligible amount

State whether the discount applies to product subtotal, selected items or another clearly defined base. Explain the treatment of delivery charges.

A fixed ₹100 off products is not necessarily equivalent to ₹100 off the final amount if exclusions or thresholds differ.

Configure the storefront to match the stated rule and test it with an ineligible product.

Consider minimums and caps

A fixed offer may need a minimum order value to avoid an unsuitable small basket. A percentage offer may use a cap to limit the maximum reduction.

These conditions should be clear before checkout, not revealed as a surprise after the customer adds products.

Do not add complexity merely to make an offer look larger. The buyer should be able to understand the likely saving.

Check product mix

Two baskets with the same value can have different contribution. A discount that works for one range may be unsuitable for another.

Test a lower-contribution ordinary basket rather than only the best-margin example.

If exclusions are necessary, communicate them plainly and make sure the system enforces them consistently.

Compare the business objective

A fixed offer may encourage a particular threshold behaviour; a percentage offer scales with eligible value. Neither effect should be assumed without observation.

Define why the promotion exists: a limited introduction, clearing a specified range or another concrete purpose.

Do not treat increased order count as proof of success if contribution or fulfilment burden has deteriorated.

Prevent unintended combinations

Check whether another coupon, automatic markdown or free-delivery rule can combine with the offer.

Calculate the resulting final price, not each promotion in isolation. A pair of individually acceptable discounts can produce an unsuitable combined result.

Use safe test baskets and retain the checked examples for whoever configures future campaigns.

Preserve the accepted offer in the record

Keep the realised discount and final amount associated with the order. If a customer later asks about a partial return or correction, the team should not reconstruct the transaction from today's promotion settings. The applicable adjustment depends on the agreed policy and circumstances, but an accurate original record is the starting point.

Choose a clear, affordable offer

Write a small table with ordinary basket values, final amounts and contribution under each option. Add the relevant minimum, cap and exclusions.

Then assess whether the offer is understandable and operationally manageable. Simpler wording is useful only when the underlying economics still work.

After the promotion, compare actual baskets and realised costs with the scenario. The best format is the one that serves the stated purpose without hiding an unaffordable reduction behind a persuasive headline.