> ## Documentation Index
> Fetch the complete documentation index at: https://docs.upstackdata.com/llms.txt
> Use this file to discover all available pages before exploring further.

# New Customer Refund Per Order: Average First-Buyer Refund

> Track average refund amount per new customer order. Measure first-buyer return costs and identify product-market fit or fulfillment issues.

<Tip>
  The average refund amount issued per new customer order.
</Tip>

## Formula

<Info>
  **NC Refund Per Order** = [**New Customer Refunds**](/reference/metrics/orders/adjustments/new-customer-refunds) ÷ [**New Customers**](/reference/metrics/orders/customers/new-customers)
</Info>

### Formula Components

| Metric                                                                                 | Definition                                  |
| -------------------------------------------------------------------------------------- | ------------------------------------------- |
| [**New Customer Refunds**](/reference/metrics/orders/adjustments/new-customer-refunds) | Total refund dollars from first-time buyers |
| [**New Customers**](/reference/metrics/orders/customers/new-customers)                 | Count of orders from first-time buyers      |

| Metadata        |                             |
| --------------- | --------------------------- |
| **Type**        | Currency                    |
| **Data Source** | [Shopify](/sources/shopify) |
| **Aggregation** | Ratio                       |

***

## Example

Your store processed **847 new customer orders** in February with **\$2,965** in refunds:

| Metric                  | Value      |
| ----------------------- | ---------- |
| New Customer Refunds    | \$2,965    |
| New Customer Orders     | 847        |
| **NC Refund Per Order** | **\$3.50** |

Compare this to your Returning Customer Refund Per Order of \$2.18—new customers cost 60% more in refunds per order.

***

## How It Works

This metric divides total new customer refunds by total new customer orders—not just refunded orders. This gives you the average refund liability per first-time buyer transaction, helping you understand acquisition quality and the true cost of acquiring new customers after accounting for returns.

***

## When to Use

| Scenario                        | Action                                                              |
| ------------------------------- | ------------------------------------------------------------------- |
| Evaluating acquisition channels | Identify campaigns driving higher new customer refund rates         |
| Comparing NC vs RC behavior     | New customers typically have higher refund rates than repeat buyers |
| Assessing product-market fit    | High values may indicate targeting issues or unmet expectations     |
| Budgeting for returns           | Factor into CAC and payback period calculations                     |

***

## Related Metrics

| Metric                                                                                                           | Relationship                                      |
| ---------------------------------------------------------------------------------------------------------------- | ------------------------------------------------- |
| [New Customer Refunds](/reference/metrics/orders/adjustments/new-customer-refunds)                               | Numerator: total NC refund dollars                |
| [New Customers](/reference/metrics/orders/customers/new-customers)                                               | Denominator: NC transaction count                 |
| [New Customer Refund %](/reference/metrics/orders/adjustments/new-customer-refund-percent)                       | Percentage of NC orders refunded                  |
| [Returning Customer Refund Per Order](/reference/metrics/orders/adjustments/returning-customer-refund-per-order) | Compare new vs returning customer refund behavior |
| [Refund Per Order](/reference/metrics/orders/adjustments/refund-per-order)                                       | Overall refund per order across all customers     |

[See all Adjustments metrics →](/reference/metrics/orders/adjustments)