What the numbers say
On an order at $77.00, a tote bag costs $6.89: its unit cost and one more pick. The customer pays the same, so the order's margin falls from $13.80 to $6.91.
To earn the same per visitor, the gift has to bring 99.7% more buyers. A cheaper gift, or a gift on larger orders only, needs less.
The gift's retail value ($15.00) is what the customer sees; its cost is what the margin pays. A $15 tote bag, costed at a.k.a. Brands' reported gross margin.
The cost structure, and where it comes from
| Price | $77.00, the average order. a.k.a. Brands, annual report (Form 10-K) for the year ended 2025-12-31, read 13 October 2026 |
|---|---|
| Unit cost | $32.88. From the income statement: revenue $600.2 million, gross profit $344.1 million, a gross margin of 57.3%. a.k.a. Brands, annual report (Form 10-K) for the year ended 2025-12-31, read 13 October 2026 |
| Pick and pack | $3.20 per order and $0.48 for each extra item. Fulfill.com, 3PL pricing benchmarks (The Fulfillment Advisor 2025 survey of 600+ warehouses), read 23 September 2026 |
| Shipping label | USPS Ground Advantage, commercial, Zone 5, by weight rounded up to the pound: 1 lb $9.29 · 2 lb $10.50 · 3 lb $12.12 · 4 lb $13.89 · 5 lb $14.53. Packed weight is an assumption: 2 lb per order. USPS Notice 123, USPS Ground Advantage Commercial, Zone 5 (effective 4 October 2026), read 13 October 2026 |
| Card fees | 2.9% + $0.30 per order: Shopify Payments' online rate for a standard card on the Basic plan in the United States. Higher plans pay a lower rate, and premium cards a higher one. Shopify's pricing page for the United States, online standard card rates, read 12 October 2026 Rates by plan and country |
| Refund reserve | 18.3%, the sales return rate a.k.a. Brands reports across its brands for 2025. a.k.a. Brands, annual report (Form 10-K) for the year ended 2025-12-31, read 13 October 2026 |
| Gift | A tote bag: unit cost $6.41, retail $15.00. A $15 tote bag, costed at a.k.a. Brands' reported gross margin. |
The offer, as an agent writes it
An agent writes this offer as one document for Offer Suite's API, validated against the offer schema. Below is one option of it: what the buyer gets and the price it promises. Offer Suite checks with a real cart that checkout charges exactly the prices above.
Show one option 1 option · excerpt
{
"key": "with-gift",
"display": {
"title": "With a tote bag"
},
"lines": [
{
"role": "main",
"quantity": 1,
"purchase": {
"type": "one_time"
}
},
{
"role": "gift",
"quantity": 1,
"purchase": {
"type": "one_time"
}
}
],
"pricing": {
"promise": {
"firstChargeCents": 7700,
"renewalChargeCents": null
}
}
}How Offer Suite validates, versions and publishes a document like this one: offer documents.
Questions
Is a gift with purchase profitable for online fashion brands?
With a tote bag, an order at $77.00 keeps $6.91 on these costs, $6.89 less than without it. It is profitable while the order still earns, and worth giving only if it brings buyers.
How much does a free gift have to lift conversion for online fashion brands?
By 99.7% here, to earn the same per visitor as the order without it.