Discounting strategies are a frequently discussed topics among retailers. There are many strategies, but in general, retailers turn to these strategies when they struggle with selling items at the original price or need a stock clearance (to prevent or solve headstock), to attract new customers etc. Discounted products are items with a price lower than originally sold.

This segment is important for revealing which portion of your inventory is discounted and the exact quantity of ad spend. Discounted Products deserve special treatment in case you need to get rid of old stock before the new season and/or protect the margin that is left on the discounted items. It ultimately allows for control when these promotions are run and offers possible adjustment for KPI targets.

Define the discount threshold in %.

The Discounted Products segment has a requirement of using both Price and Sale Price fields in the product inventory feed. The percent difference is then calculated.

It is important for you to consider overall profitability when promoting Discounted Products. These products tend to sell well but it may be that even while you are hitting goals, they are selling products at a loss and operating at lower-than-expected margin rates.

If you can influence discounting decisions, the best practice is to compare the money you can lose by applying the discounts with the same budget invested into the selected product promotion. What is better? Lose $20 on every purchase or invest $20 in every product transaction via product promotion?

Promoting discounted products adds cost to already diluted revenue. So, for the sake of visibility, it's great to report back the real margin of these products. Their ROI wasn't influenced only by the discount, but even by the advertising cost. Due to these facts, companies consolidate strategies such as: