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NC CM4 % is the share of first-order net revenue left after product cost, fulfillment, payment fees, all ad spend, and every per-order fee. It is a rate, so you can compare months with very different acquisition volumes.

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Formula

NC CM4 % = ( NC CM2 − NC Marketing, Agency Fees, Opex, and Other order fees − Total Ad Spend ) ÷ NC Net Revenue × 100

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Formula Components

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How It Works

The numerator matches NC CM4 per Order; only the denominator differs. Upstack sums both sides across the range and divides once. Three rules shape the result:
  • New customer orders only. Each customer’s earliest non-cancelled order in Upstack. Orders without a customer are excluded.
  • All ad spend. Spend isn’t split between new and returning customers, so the full amount is set against first-order revenue.
  • No recurring or variable costs. Recurring expenses and % of Ad Spend costs reduce dollar NC CM4, by the new customer share, but not this rate.

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Example

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How to Interpret It

The table shows the easiest way to read NC CM4 %: it’s NC CM2 % minus ad spend as a share of first-order revenue, minus per-order fees. In this store, ad spend is the only big lever. If ad spend rose above about 41% of first-order revenue, NC CM4 % would go negative.
  • Falling while NC CM2 % holds means ad spend is growing faster than first-order revenue.
  • Falling while ad spend share holds means first-order margin is shrinking. Check discounts in NC CM1 %.
  • Compared with RC CM4 %, remember both subtract the same total ad spend. When RC CM4 % is higher, it’s often because returning revenue is a bigger base for that same spend, not because repeat orders are free of ad cost.

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Common Pitfalls

  • It won’t equal NC CM4 ÷ NC Net Revenue if you have recurring expenses or variable costs.
  • Low first-order revenue exaggerates it. In a week with few new customers but steady ad spend, NC CM4 % can drop sharply.

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FAQ

It means first orders didn’t cover their share of ad spend and per-order costs. For brands that earn on repeat purchases, that can be planned. It becomes a problem when repeat margin doesn’t make it back within your payback window.
NC CM4 % also subtracts agency fees, opex, and other order fees. If you don’t use order fees in those categories, the two are equal.
See all Contribution Margin metrics →