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Tag: markdown strategy

Why a 25% Sitewide Discount Cuts Your Profit Margin by 66%, Not 25%

A 25% sitewide discount cuts ecommerce contribution margin by 66%, not 25%

A 25% sitewide discount does not cut margin by 25%. Full US apparel math: $27.80 to $9.52 per order, and why a $105,000 sale week ended at minus $7,260 after returns.

Published August 8, 2026
Categorized as Ecommerce Profitability Tagged AOV, apparel ecommerce, contribution margin, D2C unit economics, discounting, ecommerce profitability, ecommerce returns, markdown strategy

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