Discounts Allocation

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This article will cover the following:


1. Eligible promotions & campaigns and products and items

  • Types of promotions & campaigns can allocate discounts
    Discount amount, discount %. e.g., order-level promotion, product-level/ category-level promotion, Bundle Promotion, and membership-tier offers, store credits, and Point Redeem To Cash.
  • Types of promotions & campaigns cannot allocate discounts
    Free shipping discount, and payment fee set in the payment options
  • Types of products & items can allocate discounts
    Product, Subscription Products
  • Types of products & items cannot allocate discounts
    Add-ons, Shipping Cart Add-on Item, Free gits, Custom Product by "Create Order" feature

*Note: The "Discount Amount" field in Shoplytics' Product Sales Analysis currently does not include redemption of store credits and member points. Please see this article To know more about Product Sales Analysis.

 

2. How does the system allocate the discount to products in each order

While an order is placed, the system would run a background process
that automatically allocates the applied discount to each related
product and item in the order. The flow of check-out in the store
would not be changed. So you may see the allocated discount shown in the order report.


Besides, while using the feature of "Order split"
to move products from parent order to child order,
the allocated discount would be split as well.
If you would like to know how it would distribute allocated discount,
you may refer to this article: How to Allocate Discounts When Splitting Orders
  • The type of promotions & campaigns is product-level, category-level, or Bundle Promotion
    The system would allocate discounts based on the proportion of the amount of the main product/ subscription products with discounts applied. Main products/ subscription products that aren't applied to any promotions would not be counted.
  • The type of promotions & campaigns is order-level
    The system would allocate discounts based on the proportion of the discounted amount of the main products and subscription products.
  • The type of promotions & campaigns is membership offer: The system would allocate discounts based on the proportion of the discounted amount of the main product and subscription products.
  • The type of promotions & campaigns is store credit and Point Redeem To Cash: The system would allocate discounts based on the proportion of the discounted amount of the main product, subscription products, and add-ons.

 

A. Product-level/ Category-level/ Bundle Promotion + Order-level promotion

If a product has applied product-level/ category-level/ bundle promotion + order-level promotion, the system would apply the promotion discount in this order:

First, the system calculates the proportion of the amount of products that can allocate product-level/ category-level/ bundle promotion discounts, and then calculate how much order-level discounts can be allocated to the order subtotal.

 

B. Product-level/ Category-level/ Bundle Promotion + Order-level promotion + Membership offer

If a product is applied product-level/ category-level/ bundle promotion + order-level promotion + membership offer, the system would apply the promotion discount in this order -

First, the system calculates the proportion of the amount of products that can allocate product-level/ category-level/ bundle promotion discounts, then calculate how much order-level discounts can be allocated to the order subtotal. Finally, the system allocates the membership offer discount to the subtotal.

 

C. Product-level/ Category-level/ Bundle Promotion + Order-level promotion + Membership offer + Store credits and Points Redeem To Cash

If a product is applied product-level/ category-level/ bundle promotion + order-level promotion + membership offer + store credits and Point Redeem To Cash, the system would apply the promotion discount in this order -

  1. The system calculates the proportion of the amount of products that can allocate product-level/ category-level/ bundle promotion discounts
  2. Calculate how much order-level discounts can be allocated to the order subtotal
  3. Allocate the membership offer discount to the subtotal
  4. Allocates the store credits to the subtotal
  5. Allocates the Points Redeem To Cash to the subtotal

*Note: The system would apply the banker's rounding rule to the prices with decimal digits.

 

3. How discount allocation of each product be shown in the order report

To know the discount allocation of each product in an order, you can select the following fields in the order report to check the discount allocations.

  • Product-level Promotion: Display the name of the applied product-level/ category-level/ bundle promotion.
  • Product-level Discount: Display the discount amount of applied product-level/ category-level/ bundle promotion.
  • Order-level Promotion: Display the name of the applied order-level promotion.
  • Order-level Discount: Display the discount amount of the applied order-level promotion.
  • Store credit redemption: Display the discount amount of the applied store credits
  • Points Redeem To Cash: Display the discount amount of the redeemed member points
The discount allocation feature has been released since 27 November 2019.

A. Orders placed after the feature release -
the above fields would display the correspondsing information in order report
if a product item is applied for promotions & campaigns.

B. Orders placed before the feature release -
the above fields would display
N/A, even if a product item
was applied for product-level / order-level promotions.

C. The above fields would remain blank
if a product item has not applied any promotions.

D. Free shipping and free gifts promotions are not applicable in fields above.


4. Calculation examples and display of allocated discount

There is an order with 6 products. The products are going to apply product-level, order-level,  membership offers, store credits, and Points Redeem To Cash. You can find how the discounts are allocated below:

 

Product details

Product Name Price Quantity Total Price (Price x Quantity)
Product A 200 2 200x2=400
Product B 150 1 150x1=150
Product C 150 1 150x1=150
Product D 100 2 100x2=200
Product E 100 2 100x2=200
Add-on item F 20 1 20x1=20

 

General information about promotions that the order is going to be applied

  • Type of promotion: Order-level
    Promotion name: "Get $100 off on Entire Order with purchase over $888"

    ➔ Discount $100 for this promotion

 

  • Type of promotion: Bundle Promotion
    Promotion name: "Purchase 3 items of Product A & Product B for $500"
    ➔ Discount $50 for this promotion

 

  • Type of promotion: Product-level 
    Promotion name: "Get 10% off on Product C & Product D with the purchase of Selected Products over 2 items"
    ➔ Discount $35 for this promotion

 

  • Type of promotion: Offer for membership tier
    Promotion name: VIP discount 20% off 
    ➔ Discount $183 for this promotion

 

  • Type of promotion: Applied store credits
    ➔ Discount $100 for this promotion

 

  • Type of promotion: Point Redeem To Cash
    ➔ Discount $100 for this promotion

 

Discount allocation in product-level promotion

Product Name Total Price (Price x Quantity) Promotion Name & Discount Applied Allocation in Product-Level Discount
Product A 200x2=400

Purchase 3 items of Product A & Product B for $500


Discount: (400+150)-500=50
50*400/(400+150)=36
Product B 150x1=150 50*150/(400+150)=14
Product C 150x1=150

Get 10% off on Product C & Product D with purchase of Selected Products over 2 items


Discount: (150+200)*0.1=35
35*150/(150+200)=15
Product D 100x2=200 35*200/(150+200)=20
Product E 100x2=200 Product-level/ Bundle promotion not applied  
Add-on item F 20x1=20 Product-level/ Bundle promotion not applicable  
Total 1120    85

 

Discount allocation in order-level promotions

Since the system only allocates order-level discounts to main products/ subscription products, the proportion used to calculate allocation in total order will exclude the price of Add-on item F, and take the discounted subtotal as the denominator.

For example, this order fulfills the condition of the $100 off order-level promotion, so the order would receive $100 off. The order-level discount of $100 would be allocated in Product A based on its proportion of discounted subtotal.

Product Name Total Price (Price x Quantity) Discount Allocation in Product-Level Discount Discounted Subtotal Discount Allocation in Order-Level Discount
Product A 400 36 400-36=364

100*(364/1015)

=35.86≌36

Product B 150 14 150-14=136

100*(136/1015)

=13

Product C 150 15 150-15=135

100*(135/1015)

=13

Product D 200 20 200-20=180

100*(180/1015)

=18

Product E 200 0 200-0=200

100* (200/1015)

=20

Add-on item F 20 N/A N/A N/A
Total 1120 85 1120-85-20=1015 100

 

Discount allocation in the membership offer

Product Name Total Price (Price x Quantity) Discount Allocation in Order-Level Discount Discounted Subtotal Discount Allocation in Member Offer
Product A 400 36 400-36-36=328

183*(328/915)

=65.6≌66

Product B 150 14 150-14-13=123

183*(123/915)

=24.6≌25

Product C 150 15 150-15-13=122

183*(122/915)

=24.4≌24

Product D 200 20 200-20-18=162

183*(162/915)

=32.4≌32

Product E 200 0 200-0-20=180

183*(180/915)

=36

Add-on item F 20 N/A N/A N/A
Total 1120 100 1120-85-20-100=915 915*0.8=183

 

Discount allocation in applied store credits

The store credit discount is applicable to the order's main products, product subscriptions, and add-ons. The logic applies to split orders.

Product Name

Total Price (Price x Quantity)

Discount Allocation in Member Offer

Discounted Subtotal

Discount Allocation in Applied Store Credits

Product A

400

66

400-36-36-66=262

100*(262/752)

=34.84≌34

Product B

150

25

150-14-13-25=98

100*(98/752)

=13.03≌13

Product C

150

24

150-15-13-24=98

100*(98/752)

=13.03≌13

Product D

200

32

200-20-18-32=130

100*(130/752)

=17.28≌17

Product E

200

36

200-0-20-36=144

100*(144/752)

=19.14≌20

Add-on item F

20

  N/A

N/A

100*(20/752)

=2.65≌3

Total

1120

183

1120-85-100-183=

732

100

 

Discount allocation in Point Redeem To Cash

The Point Redeem To Cash is applicable to the order's main products, product subscriptions, and add-ons. The logic applies to split orders.

Product Name

Total Price (Price x Quantity)

Discount Allocation in Applied Store Credits

Discounted Subtotal

Discount Allocation in Point Redeem To Cash

Product A

400

34

400-36-36-66-34=228

100*(228/652)

=34.9≌35

Product B

150

13

150-14-13-25-13=85

100*(85/652)

=13.6≌13

Product C

150

13

150-15-13-24-13=85

100*(85/652)

=13.6≌13

Product D

200

17

200-20-18-32-17=113

100*(113/652)

=17.3≌18

Product E

200

20

200-0-20-36-20=124

100*(124/632)

=19.01≌19

Add-on item F

20

  3

20-3=17

100*(17/652)

=2.6≌2

Total

1120

100

1120-85-100-183-100=

632

100

 

Discount allocation display

You can go to Admin > [Order Management] > [Orders], select the product you wish to view, and hover the cursor over "Allocated discount" in blue under the "Product Details" section to check the itemized allocated discounts.

Screenshot 2023-11-24 at 4.03.57 PM.png

 

 

 

 

 

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