Discount Financial Information
How are discounts calculated and funded?
Business Discounts, Member Discounts and Discount Codes are deducted from the order's subtotal. Discounts are not deducted from service charges or delivery charges. Add-on Items are not included in the subtotal when the discount is calculated, as these items are already discounted.
This means that your outlet is funding these discounts, and the marketplace commission is calculated on the subtotal after the discount has been deducted therefore the value is reduced for a discounted order.
In the future, we will be building other funding options for discounts and you will have the option for your marketplace to fund a discount and the outlet to still receive full payment for the order.
How are marketplace commissions calculated on a discounted order?
Commissions to the Marketplace are calculated as follows (these examples do not include payment of the service charge to the marketplace):
VAT registered Marketplaces charging 10% commission: 10% of ((Gross subtotal -Ggross discount value) + Gross Restaurant own delivery cost) + 20% VAT
Non VAT registered Marketplaces charging 10% commission: 10% of ((Gross subtotal - Gross discount value) + Gross Restaurant own delivery cost)
Example of an order with a 10% discount:
(these examples do not include payment of the service charge to the marketplace)
VAT registered Marketplaces charging 10% commission: | Non VAT registered Marketplaces charging 10% commission: | |
|---|---|---|
Subtotal | £36.00 | £36.00 |
Discount value | -£3.60 | -£3.60 |
Delivery | £1.00 | £1.00 |
Marketplace Charge | £0.50 | £0.50 |
Total | £33.90 | £33.90 |
Commission due to the marketplace | 10% of ((£36.00 - £3.60) + £1.00) + 20% = £4.00 | 10% of ((£36.00 - £3.60) + £1.00) = £3.34 |
Example of an order with a £5 discount:
(these examples do not include payment of the service charge to the marketplace)
VAT registered Marketplaces charging 10% commission: | Non VAT registered Marketplaces charging 10% commission: | |
|---|---|---|
Subtotal | £36.00 | £36.00 |
Discount value | -£5.00 | -£5.00 |
Delivery | £1.00 | £1.00 |
Marketplace Charge | £0.50 | £0.50 |
Total | £32.50 | £32.50 |
Commission due to the marketplace | 10% of ((£36.00 - £5.00) + £1.00) + 20% = £3.84 | 10% of ((£36.00 - £5.00) + £1.00) = £3.20 |
Who funds the discounts?
Each of the discounts is funded by the business. How the discount is offered to a customer depends on the discount, see below:
Business Discounts
This discount is available as a percentage or a fixed amount discount. This discount will be offered by a business across all of its outlets, it is automatically applied and is available to all customers.
Member Discounts
This discount is only available as a percentage discount. This discount will be offered by a business across all of their outlets, and automatically applied only to the individual customer it has been offered to.
Discount Codes
All customers can apply this discount at check out, this can be applied to all outlets available on the marketplace, or specific outlets on the marketplace. Marketplaces funding this discount will need to track the Discount Code usage and reimburse the businesses accordingly.
To track the usage of the Discount Code, navigate to the Redbox Management Portal → Marketplaces → Select the required marketplace → Discount Codes → Select the required Discount Code → Click on the Usage Report. This usage report can be downloaded as a .CSV file.