> ## 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 COGS Net Rate: First-Time Buyer Cost vs Net Revenue

> Measure new customer COGS as a percentage of net revenue. Track true cost efficiency for first-time buyers after discounts and refunds.

<Tip>
  New customer COGS as a share of their net revenue—shows the true cost ratio after discounts and refunds.
</Tip>

## Formula

<Info>
  **New Customer COGS Net Rate** = ( [**New Customer COGS**](/reference/metrics/orders/cogs/new-customer-cogs) ÷ [**New Customer Net Revenue**](/reference/metrics/orders/revenue/new-customer-net-revenue) ) × 100
</Info>

### Formula Components

| Metric                                                                                     | Definition                                                 |
| ------------------------------------------------------------------------------------------ | ---------------------------------------------------------- |
| [**New Customer COGS**](/reference/metrics/orders/cogs/new-customer-cogs)                  | Cost of goods sold for first-time buyer orders             |
| [**New Customer Net Revenue**](/reference/metrics/orders/revenue/new-customer-net-revenue) | Net revenue from new customers after discounts and refunds |

| Metadata        |                                                                         |
| --------------- | ----------------------------------------------------------------------- |
| **Type**        | Percentage                                                              |
| **Data Source** | [Shopify](/sources/shopify), [Upstack Costs](/dashboard/settings/costs) |
| **Aggregation** | Ratio                                                                   |

***

## Example

Your new customers generated **\$42,400** in net revenue with **\$18,340** in product costs:

| Segment             | COGS     | Net Revenue | COGS/Net Rate |
| ------------------- | -------- | ----------- | ------------- |
| New Customers       | \$18,340 | \$42,400    | 43.3%         |
| Returning Customers | \$24,680 | \$65,100    | 37.9%         |

New customers have higher COGS net rate due to acquisition discounts reducing net revenue.

***

## How It Works

This metric divides New Customer COGS by New Customer Net Revenue. It's typically higher than the gross rate because discounts and refunds reduce the denominator. Use this for true profitability analysis after accounting for all adjustments.

***

## When to Use

| Scenario              | Action                                       |
| --------------------- | -------------------------------------------- |
| True acquisition cost | See COGS burden after discounts are applied  |
| Margin reality check  | Understand actual first-order profitability  |
| Discount impact       | Compare to gross rate to see discount effect |
| CAC payback           | Use with NC revenue for payback analysis     |

***

## Related Metrics

| Metric                                                                                              | Relationship                         |
| --------------------------------------------------------------------------------------------------- | ------------------------------------ |
| [New Customer COGS](/reference/metrics/orders/cogs/new-customer-cogs)                               | Numerator—product costs              |
| [New Customer Net Revenue](/reference/metrics/orders/revenue/new-customer-net-revenue)              | Denominator—after-adjustment revenue |
| [COGS Net Rate](/reference/metrics/orders/cogs/cogs-net-rate)                                       | All-customer comparison              |
| [Returning Customer COGS Net Rate](/reference/metrics/orders/cogs/returning-customer-cogs-net-rate) | Repeat buyer comparison              |

[See all COGS metrics →](/reference/metrics/orders/cogs)