Contra Revenue

So this fancy term actually explain about the part of revenue which is kept aside by the ecommerce websites for exclusive discounts and stuff. So this part of revenue which could be typically 3-8% of the year revenue is further invested in profit cycles and the returns will be then allocated for these big discount sales. So to explain simply, using the profits on revenue (last year’s) for the discounts (this year). It is not necessary a company should have the contra revenue but it is advisable and it is the most successful initiative in abroad.