Showing the impacts of discounts and returns on your sales and margin.
Total Allowance %
Allowances are made up of markdowns and discounts and represent the delta between the AIR and the AUR.
Using this report you can see the allowance % by product hierarchy to understand the areas that you'e been more promotional in.
Returns can have a big impact on profitability, especially in online businesses. So in weekly reporting, it's key to keep an eye out for return rates and analyze return rate by product class to understand if some products are more prone to return.
Net Sales Margin %
This is one of the most important metrics in understanding the profitability of the business. Net Sales Margin % shows the margin generated by each of the classes after allowances and returns are taken into consideration.