Black Friday Pricing: How to Discount Without Losing Money

Quick answer: Before choosing a Black Friday discount, work out your true profit per item after product cost, marketplace or payment fees, postage, packaging and ad costs. Then only discount what that profit can absorb. Instead of cutting every price, use offers that protect your margin: bundles, free gifts with purchase, free delivery over a set spend, "buy two, save more" and limited premium editions. UK shoppers traded up last festive season, so the deepest discount isn't always what wins.

A seller once told us their best Black Friday ever was also their worst. They sold three times their normal volume with 40% off everything. Then the fees, the extra ads, the free postage and the returns came through. When they added it up in January, they'd worked flat out for two weeks and made less than in an ordinary fortnight in October.

Tekovex manages stores on eBay, Etsy, Amazon, TikTok Shop and Shopify, and our client stores have passed £1 million in UK sales. Here's the pricing method we use so Black Friday makes money, not just noise.

What the data says about Black Friday shoppers

• Black Friday was the UK's biggest online shopping day of 2025, at £1.16 billion (Adobe).
• But shoppers didn't just hunt the cheapest deals. The share of expensive items sold in November and December was 14% higher than the rest of the year.
• The top reason people abandon online baskets is extra costs such as delivery, cited by 40% of shoppers (Baymard Institute). Free delivery can matter more than a bigger discount.

Step 1: Work out your real profit per item

Take one product selling at £40:

• Product cost: £14
• Marketplace and payment fees (about 13%): £5.20
• Postage and packaging: £4.00
• Ad cost per sale: £4.00
• Profit: £12.80 (32%)

Now apply 30% off. The price drops to £28, fees fall to about £3.64, and profit becomes £2.36. You'd need to sell more than five times as many to make the same money. A 15% discount (£34) leaves about £7.58 profit, a far safer place to be.

Step 2: Choose your discount ceiling

Set a maximum discount for each product based on its profit. High-margin products can take bigger discounts. Low-margin best sellers often shouldn't be discounted at all, because they'll sell anyway.

Step 3: Use offers that protect your margin

• Bundles: "Gift set of three for £50" instead of £20 each. Bigger order, one postage cost.
• Free gift with purchase: a low-cost extra feels generous but costs you far less than a discount.
• Free delivery threshold: "Free UK delivery over £35" lifts basket size.
• Tiered offers: "10% off one, 20% off two".
• Limited editions: a special colour or premium version at full price.
• Early access for your email list: rewards loyal customers without discounting to everyone.

Step 4: Be honest with your prices

Only show a "was" price that you genuinely charged before. Inflating prices to fake a discount can break UK consumer protection rules and marketplace policies, and shoppers notice. Marketplaces such as Amazon and eBay also have their own rules for reference prices and deal events.

Step 5: Plan for the hidden costs

• Ad costs usually rise in late November as competition increases.
• Returns go up after big sales, especially for clothing.
• Extra packing help and materials cost money.
• Stock that sells out at a discount can't be sold at full price in December.

Step 6: Measure it properly

After Cyber Monday, compare profit, not just sales, against a normal fortnight. Note which offers worked and which just gave margin away. That's your plan for next year.

Frequently asked questions

How much should I discount on Black Friday?

Only as much as your profit per item allows. For many small sellers, 10–20% on selected products works better than 30–50% on everything.

Do I have to take part in Black Friday?

No. Some brands skip it and focus on full-price gifting. Others offer gifts or free delivery instead of discounts.

What are the best Black Friday offers for small businesses?

Bundles, free gifts with purchase, free delivery thresholds and early access for email subscribers.

When should Black Friday deals start?

Many retailers start early in November. Black Friday 2026 is Friday 27 November and Cyber Monday is 30 November.

Is it legal to show a "was" price?

Yes, if it's a genuine previous price. Misleading reference prices can break UK consumer protection law.

Want help planning Black Friday?

Tekovex plans offers, updates listings and runs stores through Q4. See our ecommerce management service or book a free consultation. Also read our Q4 ecommerce checklist.