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January 19th, 2011, 01:16 PM #1
Coupon Codes and Commission Corrections
- Join Date
- January 6th, 2011
As a merchant we are always trying to figure out that delicate balance between staying competitive, helping affiliates sell, while making a profit.
Most of our items have a dictated margin of markup from the vendor so we can't really make it up in the mark-up, plus we'd price ourselves out of the market.
We always have standard coupon codes published for both affiliates and direct sales for 10% off which we always allow, and never correct commissions.
When certain holidays roll around, we try to stay competitive by offering site-wide sales like 30% off. However, when we do this AND issue commissions on those sales are losing all profits. So, we find ourselves wondering "if we correct this commission, due to no fault of the publisher since the customer saw the code on our site, then we risk losing the publisher. if we don't, we lose our profits and may be paying to sell this order"
We see our competition advertising big sales on their home page, I wonder if they correct or let it go. We are popular enough now that about 80% of all orders have some kind of commission cookie set so it's turning into a pretty big headache!
Any advice is much appreciated!
January 31st, 2011, 04:56 PM #2
- Join Date
- January 28th, 2011
Your commission should be based on the item subtotal, minus discounts, and not including shipping.
If your commissions are not based on that amount, I would try and find out how to get it working that way. It's a pain to adjust every order with a discount, especially when the discounts are sizable.
Also, Keep the commissions in mind when determining coupon values. Don't issue a coupon if it's going to cause you to lose your shirt. Consider a 25% discount instead of 30%.
January 31st, 2011, 10:53 PM #3
mida68, I take it that you are using Commission Junction as you placed this in that forum. Talk to them about Item Based Commissions (IBC) which will allow you to set specific commissions per item.
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