New Customer Gross Profit measures revenue minus COGS from first-time buyer orders. It shows product-level profitability for acquisition.
NC Gross Profit = NC Net Revenue − NC COGS
| Metric | Definition |
|---|
| NC Net Revenue | Net revenue from new customer orders |
| NC COGS | Cost of goods sold for new customer orders |
| Metadata | |
|---|
| Type | Currency |
| Data Source | Shopify |
| Aggregation | Sum |
Example
Your Shopify store generated $40,000 in new customer net revenue with $18,000 in COGS.
| Metric | Value | Calculation |
|---|
| NC Net Revenue | $40,000 | After discounts/refunds |
| NC COGS | $18,000 | Product costs |
| NC Gross Profit | $22,000 | $40,000 − $18,000 |
How It Works
NC Gross Profit isolates the gross margin contribution from new customer orders. This helps you understand if acquired customers are buying profitable products, which is essential for LTV:CAC calculations.
When to Use
| Scenario | Action |
|---|
| Acquisition profitability | Understand first-order gross margin |
| Product mix analysis | See if new customers buy high-margin products |
| CAC payback planning | Compare NC gross profit to CAC |
| NC vs RC comparison | Compare acquisition vs retention gross margins |
| Metric | Relationship |
|---|
| Gross Profit | Total gross profit for all orders |
| RC Gross Profit | Gross profit from returning customers |
| NC Contribution Margin | NC gross profit minus variable costs |
| NC COGS | The cost component subtracted |
