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Sales · Definition

Trade Discount

A reduction from list price given to a customer or channel.

A trade discount is a percentage or amount off list price, granted for volume, channel position or relationship. It is applied before tax and shows on the invoice as a reduction.

Discounts stack quietly. Volume, seasonal and settlement discounts applied together can take a line below cost, which is why margin should be checked at the point of quoting.

Also called

  • volume discount
  • channel discount

Trade Discount is not just a definition here

Sales runs on this vocabulary every day in AWRA OpsHub — 14 of our 257 glossary terms describe things the platform actually does.