Returning Customer CM1 per Order: Repeat Order Gross Margin

Returning Customer CM1 per Order measures the average gross margin from repeat customer orders—the product-level profitability of retention.

Formula

Returning Customer CM1 per Order = Returning Customer CM1 ÷ Returning Customer Orders

Formula Components

Metric	Definition
Returning Customer CM1	Gross margin from repeat orders
Returning Customer Orders	Count of repeat orders

Metadata
Type	Currency
Data Source	Shopify, Upstack Costs
Aggregation	Average

Example

Your Shopify store has $60,000 Returning Customer CM1 from 500 repeat orders.

Component	Value	Calculation
Returning Customer CM1	$60,000	Repeat order gross margin
Returning Customer Orders	500	Repeat orders
Returning Customer CM1 per Order	$120	$60,000 ÷ 500

How It Works

Returning Customer CM1 per Order shows the gross margin from each repeat purchase. Since these customers are already acquired, this margin largely drops to profit (minus fulfillment and overhead).

When to Use

Scenario	Action
Retention value	Measure margin from repeat purchases
Comparison	Compare to new customer CM1 per order
Loyalty programs	Justify retention investment
Product strategy	Optimize repeat purchase mix

Metric	Relationship
Returning Customer CM1	Total repeat gross margin
CM1 per Order	Overall gross margin per order
Returning Customer CM2 per Order	After fulfillment

See all Contribution Margin metrics →