Promotion ROI FAQ: how coupon and deal campaigns are measured, what counts as promo cost, benchmark ROI, and tactics to improve returns.
What is promo ROI and how is it calculated?
Promo ROI = incremental gross profit attributed to the promotion divided by the total cost of running it. Total cost includes the discount or coupon amount, deal fees, extra PPC spend, and any giveaway units. If a $2,000 campaign brings $6,000 of incremental profit, your ROI is 3x (200%).
What counts as promotion cost?
Everything you would not have spent without the campaign: coupon redemption value, Lightning Deal / Best Deal fees, promotional rebates, extra advertising spend during the window, and the margin you gave up on units you would have sold at full price anyway (incrementality matters — a sale you would have gotten for free is not campaign profit).
What is a good ROI for an Amazon promotion?
Break-even is 1x. For launch campaigns, 1-2x is often acceptable because you are buying rank and reviews; for evergreen deals you want 3x or better. Judge ROI together with the lasting effect: a promotion that lifts organic rank keeps paying after it ends, which the calculator's follow-up window helps you estimate.
How do I improve promotion ROI?
Four levers: 1) target the promotion at products with proven conversion, not dead stock; 2) cap the discount — 10-15% usually converts as well as 30%; 3) schedule extra PPC only for the campaign window; 4) stack the promotion with a price you know beats the competing offer. Measure, cut what fails, scale what works.
Can I compare several promo scenarios at once?
Yes — the tool lets you save multiple scenarios (different discounts, budgets, and expected uplift) and compares net profit and ROI side by side, including the break-even units for each. Run the pessimistic case too: if it still breaks even at half the expected uplift, the campaign is safe to run.
