Gifts for Customers: How to Set the Terms, Budget, and Fulfillment Process

Before promising customers a gift, decide who will receive it and under what conditions, how much each giveaway will cost, and what profit must remain after expenses. Then prepare the stock, agree with the accountant on how to document the transactions, and explain the process to sales staff. A useful, inexpensive item can be a suitable addition to a purchase, but by itself it does not guarantee repeat orders.

For retail in Ukraine, the offer terms must be clear to customers before they buy. State the purchase threshold, restrictions, promotion period, and any delivery costs right away. Call a discount a discount, and do not add a hidden charge for an item promised as free.

Set the goal for the gift and define the customer group

For your first launch, choose one goal you can measure: increase the number of first orders, raise the purchase amount, or encourage customers to return. Each goal needs its own terms and metrics. If you change prices, launch advertising, and start giving away gifts at the same time, it will be difficult to tell what affected sales.

• For a first purchase, decide how the store will identify a new customer and state this in the terms. Sales staff must apply the rule consistently to all participants.
• To increase the purchase amount, set a threshold for one order and explain whether discounts, delivery, and specific product categories count toward it.
• For regular customers, define the participation criterion, such as the number of completed purchases within a specified period. Separately state how returns will be counted.
• For all visitors, prepare a separate budget because costs will arise even when no sale is made.

A practical starting point is one store, one type of gift, and a limited batch. Assign someone to manage the stock and set a date for the owner to review the results. Decide in advance when to stop making new offers: when the budget is exhausted, gifts run short, or the cost per order becomes too high.

Distinguish between a gift, discount, bonus, and certificate

First describe exactly what the customer receives and what they must do to receive it. This description is needed both for advertising and for agreeing on how to record the transaction. Calling something a “gift” does not determine its tax treatment.

Under parts 4 and 6 of Article 15 of the Law of Ukraine “On Consumer Protection” No. 1023-XII, using the term “discount” requires a defined, limited period and a price below the usual price; after a public announcement, the previous and new prices must be communicated to the consumer. If a second item is sold at a reduced price, describe the offer that way. Do not call it a free gift.

Tax treatment requires a separate decision before distribution begins. Taxes, accounting documents, and the use of a registrar of settlement transactions (РРО, the Ukrainian abbreviation) depend on how the gift is transferred and on the store’s operating conditions. Give the accountant a description of the offer mechanics, the item’s value, recipients, the store’s tax system, and payment method. Ask them to determine the required documents, taxes, and accounting treatment, including for returns.

Choose a useful gift that customers can easily decline

Assess the item based on customer needs, compatibility with the main product, and the full cost of giving it out. A large store name printed on it does not replace usefulness. For the first batch, choose an item that is easy to inspect, store, and pack.

• A bookstore could offer a bookmark that fits the book format and does not damage the pages.
• An electronics store could choose a cable organizer; for a cloth or cleaning product, check that it is suitable for the relevant surfaces.
• A jewelry store could add a suitably sized storage pouch or its own care guide for a specific material.
• A clothing store could offer a storage cover if its cost and packaging size fit the budget.
• For cosmetic or food samples, check the packaging integrity, labeling, expiration date, storage conditions, and warnings. Do not claim that they are suitable for every customer.

Let customers decline without giving a reason. A practical phrase for sales staff is: “We can add a bookmark to this purchase at no extra charge. Would you like one?” For website orders, provide a clear way to remove the gift. Declining it must not change the agreed price of the main products.

Do not make an unexpected gift conditional on leaving a positive review, posting a photo, or subscribing to a mailing list. On Google Maps, rewards for any review, or for changing or deleting a review, are prohibited by the platform rules, regardless of the rating. For other incentive offers, check the rules of the relevant platform and disclose the terms in advance.

Calculate the purchase threshold using gross profit

The threshold must account for the product mix in a purchase. Two orders for the same amount can generate different gross profit for the store if the products have different purchase costs. For a management calculation, first subtract the cost of goods sold from revenue after discounts, using comparable figures agreed with the accountant.

Next, determine the minimum amount you want to retain to cover the store’s other expenses. The amount left above that minimum limits the costs of the gift, its packaging, preparation, extra delivery, and expected losses from returns. This is the store’s budget limit, not a tax relief.

Hypothetical example. An order of UAH 1,200 after discounts has a cost of goods of UAH 840. Gross profit is UAH 360. The gift costs the store UAH 40, packaging and additional labor cost UAH 10, and planned return losses average UAH 12 per order. After these costs, UAH 1,200 − 840 − 40 − 10 − 12 = UAH 298 remains.

If the owner wants to retain at least UAH 300, this option does not meet the limit. With all other conditions unchanged, the maximum spend on the gift is UAH 360 − 300 − 10 − 12 = UAH 38. Choose a less expensive item or revise the purchase conditions, then recalculate using actual product combinations.

Also calculate the total budget. Customers who would already have spent the required amount without the promotion will receive gifts too. To assess the promotion, compare the additional gross profit it generates with all additional costs. Include the cost of gifts for customers who would already have spent the required amount without the promotion.

Publish the terms before customers complete a purchase

Parts 1 and 3 of Article 15 of Law No. 1023-XII provide for timely information about products, prices, and purchase terms. For offers of several products at one price or another product at a reduced price, the law separately requires disclosure of the offer’s content, value, period, and restrictions. If several products are offered at one price, the seller must also disclose the price of each product separately. Article 19 of this Law prohibits false, incomplete, and ambiguous information that affects a consumer’s choice.

Prepare one set of rules for the website, sales floor, and sales staff. The short notice should show the main condition and restrictions, and the full text must be available before payment. Do not disclose a significant extra charge or exception only after the customer has chosen the products, through an explanation from the cashier.

1. Name the organizer and participating locations. Specify the stores or website and how customers can ask questions.
2. Set the period. For the website, define which event must take place during the promotion: placing, paying for, or confirming an order.
3. Explain how the threshold is calculated. Describe the effect of discounts, delivery, excluded products, and multiple orders.
4. Name the gift. State the quantity per purchase, the available options, and how a customer can choose one.
5. Disclose stock limits. Define the number of gifts and when they are reserved. The promised stock must match the actual stock.
6. Explain distribution and refusal. The customer must understand when they will receive the item and how to decline it.
7. State any costs. If the gift changes delivery costs, disclose this before the purchase is agreed.

Hypothetical example of the main part of a notice: “From November 1 through November 14 inclusive, receive one bookmark at no extra charge with a purchase of books worth UAH 1,200 or more after all discounts, on a single receipt. Delivery does not count toward the purchase amount. We have prepared 100 bookmarks; the offer is valid until the end of the stated period or while supplies last. For website orders, we reserve a bookmark after a manager confirms that the books and gift are available; in-store, we hand it over at the time of purchase. You may decline the bookmark; the price of the books will remain the same.”

For an actual notice, add the organizer’s details, participating locations, and the agreed process for inquiries and returns. If stock runs out, remove the active offer from all channels right away. Forward already confirmed promises to the responsible manager; agree with the customer before substituting a specific gift.

For online stores, Articles 7 and 10 of the Law of Ukraine “On Electronic Commerce” No. 675-VIII require accessible seller information, delivery information, and unambiguous terms for receiving incentive gifts in commercial electronic messages. In practice, send offers to people who have agreed to receive them, provide a simple way to opt out, and stop sending messages after they opt out.

Organize packaging, distribution, and stock replenishment

Before launch, run a trial order from checking the terms through to packaging. Record who confirms eligibility for a gift, who reserves the item, who hands it to the customer, and who records the stock movement. One employee should be responsible for ensuring that the actual stock matches the amount available for the offer.

1. Record incoming gifts in inventory. For each item, record its name, quantity, value, and storage location. Agree with the accountant on documents for receipt and transfer.
2. Set aside the promotion stock. Mark it physically or in the inventory process so the items are not used for other purposes.
3. Prepare the packaging. Check that it protects the main product and the gift, keeps labels accessible, and does not unexpectedly increase the shipment size.
4. Record each giveaway. Link it to the purchase number, date, item, quantity, and employee. Use a separate issue register for gifts given without a purchase.
5. Monitor the available quantity. Subtract confirmed reservations and unusable items from the actual stock. This is the quantity available for new promises.
6. Set a replenishment point. Account for expected giveaways during the supply lead time and maintain safety stock. If replenishment will not arrive in time, stop accepting new orders that include a gift promptly.
7. Reconcile stock. At the end of each shift, check the opening quantity, receipts, giveaways, returns, damage, and closing balance.

In the internal instructions, describe what to do if an order is canceled before dispatch: the employee releases the reservation and checks whether the item can be offered again. Set a damaged gift aside and handle its disposition according to the agreed procedure.

Agree on the returns process before the promotion begins

With the accountant and lawyer, review full and partial purchase returns, a purchase amount falling below the threshold, return of the gift itself, and cases where the gift cannot be reused. The process depends on how the offer is structured and the grounds for the return. Do not set a universal requirement to return a gift or automatically withhold its value: the specific offer needs an appropriate legal basis.

Prepare a sequence of steps for sales staff: find the original purchase and giveaway record, document what is being returned, check the condition of the gift, and refer unusual cases to the responsible person. Sales staff must not assign the customer a “gift value” or withhold it without an appropriate legal basis.

The promotion terms must not create obstacles to customers exercising their legal rights. Part 4 of Article 19 of Law No. 1023-XII identifies burdensome or disproportionate non-contractual obstacles to exercising contractual rights among the circumstances used to assess aggressive practices. Explain the agreed process before the purchase, and handle disputed cases individually.

Gift inventory and discount analysis in Torgsoft

If gifts are set up as separate product items and entered into inventory, Torgsoft can be used to track their quantities and cost through “Склад → Стан складу” (Warehouse → Stock status). Set a minimum stock level for the item and use the filter for products running out to check in time whether replenishment is needed. Product movement and the inventory card can help verify stock changes. The way to document a free transfer must be agreed separately; stock tracking by itself does not configure automatic gift distribution based on a purchase threshold.

If the offer includes a discount, the “Реалізація” (Sale) form allows you to change the discount on an individual product; a manual document discount has the highest priority and applies to all products in the sale, so check its effect before using it. To review performance, open “Аналіз → Аналіз використання знижок” (Analysis → Discount Usage Analysis), and set the period, discount type, and accounting center. The report contains the sales amount, discount losses, and product profit. Reconcile gift, packaging, and return processing costs separately to assess the campaign’s full result.

Assess results after expenses and returns

Before launch, define the review period and the metric the promotion is intended to improve. Compare similar days, product ranges, and sales channels. If possible, leave a similar store or group of orders without the new offer for comparison. Assess differences in results while accounting for advertising, seasonality, and assortment changes.

• Participation: the number of purchases that met the terms, the number of gifts distributed, and the number declined.
• Sales: the average purchase amount after discounts, the number of completed orders, and gross profit.
• Costs: the actual cost of items given away, packaging, additional labor, delivery, and losses from returns.
• Fulfillment quality: promised gifts not distributed, order assembly errors, damage, and customer inquiries.
• Repeat purchases: the share of customers who returned within a period defined in advance, if the store can match these data accurately.

Hypothetical results example. Without the promotion, 100 orders generated UAH 300 in gross profit each, for a total of UAH 30,000. During the promotion, 100 orders generated UAH 360 each, for a total of UAH 36,000. The store spent UAH 4,000 on gifts, UAH 1,000 on packaging and additional labor, and lost another UAH 1,200 due to returns. After these expenses, UAH 36,000 − 4,000 − 1,000 − 1,200 = UAH 29,800 remained, which is UAH 200 less than the baseline result.

This calculation shows the orders’ contribution toward covering other expenses, not the store’s net profit. After the defined observation period, replace planned losses with actual figures and account for tax consequences as determined by the accountant. Continue the promotion only after reviewing its goal, costs, and fulfillment quality; if the result does not meet the established limit, change the item, threshold, or participant group and run another limited trial.