Promo margin check - and how to run it (with or without AI)

How to check if a promo is killing your margin

A proper promo margin check compares discounted price against landed cost, not just list price, across every active offer.

1. 1.

   Gross margin per discounted SKU - Calculate margin after the promo, not before, to see real profitability

2. 2.

   Discount depth vs cost buffer - Flag promos that cut deeper than your product's cost buffer allows

3. 3.

   Bundle and stacked discounts - Codes stacking with sitewide sales often push margin negative unnoticed

4. 4.

   Best-seller exposure - High-volume SKUs at thin margins do more damage than slow movers

5. 5.

   Return-prone products on promo - Discounted items with high return rates erode margin twice

6. 6.

   Trend vs last week - A margin drop that's worsening week over week signals a runaway promo

Takeaway: Run this check weekly, not just after a promo ends, so you can pause or adjust it while it still matters.