Coupon math
Check coupon profit before discounting
A coupon feels small when it is only two or three dollars. On a low-ticket product, that may be the entire profit.
Run the discounted order as its own product. New selling price, same cost structure, same return risk.
Use this formula first
Discount the order, not your confidence
Do not subtract the coupon after the profit check. Put it inside the selling price. That shows the real order before you pay fees, commission, and traffic.
If the product needs a coupon just to get clicks, make sure the remaining margin can still pay for the test.
Watch stacked offers
The dangerous stack is coupon, free shipping, creator commission, and ads at the same time. Each line looks reasonable alone. Together they can erase the order.
For a first test, change one thing at a time. It is slower, but you learn which lever actually helped.
Quick table
| Step | What to record | Seller move |
|---|---|---|
| $2 coupon | Usually safe only if the base margin is healthy. | Check if break-even ROAS still leaves ad room. |
| 10% coupon | Can help a mid-price item if shipping is controlled. | Do not stack with high creator commission too early. |
| Coupon + free shipping | High-risk on cheap products. | Treat it as a short test with a hard spend cap. |
Checklist
- Enter the coupon as a real discount before calculating fees.
- Do not stack coupon and free shipping until the base product works.
- Track coupon tests in the sheet so you can compare them later.
Run the math before spending
Use the free calculator first. If the product still looks worth testing, use the Seller Starter Sheet to track 10 product ideas, sample notes, creator plans, and weekly results.
Source notes
References to check
The visual above is original to ShopROAS. The links below are platform and policy references to check before spending money. Calculations on this page are examples, not earnings promises.
Use seller education and policy notes to check fulfillment, product listing, and order handling before testing.
Source: paid traffic TikTok Business Help CenterCheck ad setup, campaign basics, and ad policy notes before sending paid traffic to a product.
Source: pricing Shopify product pricing guideUseful for checking price floors, cost inputs, and whether a product leaves room for discounts.
Source: reviews FTC endorsement guidanceReview before using creator clips, reviews, testimonials, or claims in product content.