> ## 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.

# Returning Customer COGS Net Rate: Repeat-Buyer Cost vs Net Revenue

> Measure returning customer COGS as a percentage of net revenue. Track true cost efficiency for repeat buyers after discounts and refunds.

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

## Formula

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

### Formula Components

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

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

***

## Example

Your returning customers generated **\$65,100** in net revenue with **\$24,680** in product costs:

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

Returning customers have lower COGS net rate—better margins even after adjustments.

***

## How It Works

This metric divides Returning Customer COGS by Returning Customer Net Revenue. It's typically higher than the gross rate because discounts and refunds reduce the denominator. Use this for true profitability analysis of your repeat buyer segment.

***

## When to Use

| Scenario                     | Action                                 |
| ---------------------------- | -------------------------------------- |
| True retention profitability | See COGS burden after adjustments      |
| LTV accuracy                 | Use net-based rates for lifetime value |
| Loyalty program impact       | Compare before/after loyalty discounts |
| Segment benchmarking         | Compare to NC rate for insights        |

***

## Related Metrics

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

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