---
title: "Gift with purchase for online fashion brands"
description: "What a free gift costs online fashion brands per order on sourced costs, and how much conversion it has to add to pay for itself."
url: https://offersuite.io/playbooks/gift-with-purchase-for-online-fashion-brands
updated: 2026-10-13
---

# Gift with purchase for online fashion brands

What a free gift costs online fashion brands per order on sourced costs, and how much conversion it has to add to pay for itself.

### Without the gift

Revenue $77.00 to contribution margin $13.80 (17.9%)

Revenue

$77.00

Cost of goods

−$32.88

Pick and pack

−$3.20

Shipping label

−$10.50

Card fee per order

−$0.30

Refunds

−$14.09

Card processing

−$2.23

Contribution margin

$13.80

2 declared kinds cost nothing on this option

### With a tote bag

Revenue $77.00 to contribution margin $6.91 (9.0%)

Revenue

$77.00

Cost of goods

−$39.29

Pick and pack

−$3.20

Extra picks

−$0.48

Shipping label

−$10.50

Card fee per order

−$0.30

Refunds

−$14.09

Card processing

−$2.23

Contribution margin

$6.91

1 declared kind costs nothing on this option

The same order, without and with the gift

| Option | Customer pays | Shipping charged | Costs | Margin | Margin % | Conversion it needs |
| --- | --- | --- | --- | --- | --- | --- |
| Without the gift | $77.00 | $0.00 | $63.20 | $13.80 | 17.9% | — |
| With a tote bag | $77.00 | $0.00 | $70.09 | $6.91 | 9.0% | +99.7% |

Every figure is computed by the margin engine in Offer Suite's own code, in whole cents, from the costs below.

## 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](https://www.sec.gov/Archives/edgar/data/1865107/000186510726000008/aka-20251231.htm) |
| 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](https://www.sec.gov/Archives/edgar/data/1865107/000186510726000008/aka-20251231.htm) |
| 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](https://www.fulfill.com/3pl-pricing) |
| 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](https://pe.usps.com/text/dmm300/Notice123.htm) |
| 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](https://www.shopify.com/pricing) [Rates by plan and country](https://offersuite.io/fees/shopify-payments/united-states) |
| 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](https://www.sec.gov/Archives/edgar/data/1865107/000186510726000008/aka-20251231.htm) |
| 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](https://offersuite.io/features/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.

## See what your own offers earn.

Offer Suite opens to Shopify brands a few at a time. Join the waitlist, or ask for a free profit audit of your past orders: realized profit per item and per offer option, what each costs you, and where margin leaks.

[Join the waitlist](https://offersuite.io/waitlist) [Request a free profit audit](https://offersuite.io/profit-audit)

## Related

- [Playbooks **Offer playbooks by vertical** Bundles, subscriptions, samples, gifts, free shipping and quantity breaks for coffee, supplement, beauty, pet, apparel, fashion, footwear, jewelry, household, home goods and outdoor gear brands, on sourced costs.](https://offersuite.io/playbooks)
- [Feature **Offer documents: one validated document per offer** An offer is one validated, versioned document your agent writes: tiers, bundles, subscriptions, gifts and prices, with no offer types to pick from.](https://offersuite.io/features/offer-documents)
- [Calculator **Gift with purchase profit calculator** What a free gift costs per order, after its unit cost, its extra pick and its handling, and how much conversion it has to add to pay for itself.](https://offersuite.io/calculators/gift-with-purchase-profit)
- [Benchmark **Online fashion benchmarks from annual reports** What 4 US-listed companies selling fashion sold mostly or only online report: a median gross margin of 48.6%, from 43.2% to 57.3%. Read 13 October 2026.](https://offersuite.io/benchmarks/online-fashion)
- [Glossary **Break-even conversion lift: definition and formula** How much more an offer has to convert to earn, per visitor, what another offer earns: the gap a cheaper offer, a gift or a discount must close.](https://offersuite.io/glossary/break-even-conversion-lift)
- [Glossary **Contribution margin: definition and formula** What an order keeps after every cost that grows with it: product cost, fulfilment, shipping, card fees and refunds. The number an offer should be judged on.](https://offersuite.io/glossary/contribution-margin)