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Returning customer COGS as a share of their gross revenue—shows what percentage of repeat-buyer revenue goes to product costs.

Formula

Returning Customer COGS Gross Rate = ( Returning Customer COGS ÷ Returning Customer Gross Revenue ) × 100

Formula Components

MetricDefinition
Returning Customer COGSCost of goods sold for repeat buyer orders
Returning Customer Gross RevenueGross revenue from returning customers before discounts
Metadata
TypePercentage
Data SourceShopify, Upstack Costs
AggregationRatio

Example

Your returning customers generated $68,400 in gross revenue with $24,680 in product costs:
SegmentCOGSGross RevenueCOGS/Gross Rate
Returning Customers$24,680$68,40036.1%
New Customers$18,340$47,20038.9%
Returning customers have a lower COGS rate—they purchase higher-margin products without introductory bundles.

How It Works

This metric divides Returning Customer COGS by Returning Customer Gross Revenue. Lower percentages indicate better cost efficiency. Unlike margins which show what you keep, this rate shows what percentage goes directly to product costs.

When to Use

ScenarioAction
Segment cost analysisCompare to new customer COGS rate for efficiency differences
Margin benchmarkingTrack whether repeat buyers maintain cost efficiency over time
Product mix reviewIdentify if returning customers shift toward lower-cost products
Pricing validationConfirm retention pricing preserves healthy cost ratios

MetricRelationship
Returning Customer COGSNumerator—product costs for repeat orders
Returning Customer Gross RevenueDenominator—pre-discount revenue
COGS Gross RateAll-customer comparison
New Customer COGS Gross RateFirst-time buyer comparison
See all COGS metrics →