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Average refund amount per returning customer order.

Formula

Returning Customer Refund per Order = Returning Customer Refunds ÷ Returning Customer Order Count

Formula Components

MetricDefinition
Returning Customer RefundsTotal refund amount for returning customers
Returning Customer Order CountTotal orders from returning customers
Metadata
TypeCurrency
Data SourceShopify
AggregationRatio

Example

Your store processed 1,603 returning customer orders in February with $3,494 in refunds:
MetricValue
Returning Customer Refunds$3,494
Returning Customer Orders1,603
RC Refund per Order$2.18
Compare this to your New Customer Refund per Order of $3.50—repeat buyers cost 38% less in refunds per order.

How It Works

This metric divides total returning customer refunds by total returning customer orders—not just refunded orders. This gives you the average refund liability per repeat buyer transaction, helping you understand customer retention quality and whether loyal buyers maintain lower return rates than first-time purchasers.

When to Use

ScenarioAction
Comparing NC vs RC behaviorReturning customers typically have lower refund rates than new customers
Evaluating product quality over timeRising RC refunds may indicate quality degradation affecting loyal buyers
Measuring loyalty program impactTrack whether loyalty members have better post-purchase satisfaction
Forecasting retention costsFactor into LTV calculations alongside repeat purchase rates

MetricRelationship
Returning Customer RefundsNumerator: total RC refund dollars
Returning Customer Refund %Percentage of RC orders refunded
New Customer Refund per OrderCompare new vs returning customer refund behavior
Refund per OrderOverall refund per order across all customers
See all Adjustments metrics →