The Automatic Giveaways feature was developed to allow for tracking items that are stocked as inventory but given away during a sale without cost or at a discount for promotional purposes. This can be useful when giving away jewelry boxes or jewelry cleaner with an engagement ring sale, batteries with a watch repair, and more.
This feature does affect how Giveaway Threshold is setup. Review the article titled Setup Promotional Giveaway to learn more about setting up Giveaway Threshold.