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RC CM2 per Order is the variable margin on an average repeat order: what’s left after product, fulfillment, and payment costs. A customer with three repeat orders in the range counts three times in the denominator.

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Formula

RC CM2 per Order = RC CM2 ÷ Returning Customer Orders

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Formula Components

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How It Works

A returning order is any order from a Shopify customer other than their earliest non-cancelled order in Upstack. RC CM2 adds up the margin on all of those orders in the range, and Upstack divides it by how many of those orders there are. The denominator counts orders, not customers. A customer who places three repeat orders in the range adds three to it.

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Example

A supplements brand over a quarter. 2,000 returning customers placed 2,600 repeat orders. Each repeat order leaves $40.00 of variable margin ($104,000 ÷ 2,600). Per returning customer it’s $52.00 ($104,000 ÷ 2,000), because some customers ordered more than once.

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How to Interpret It

Read it as the variable margin a typical repeat order brings in. Compare it with NC CM2 per Order to see how much better repeat orders are than first orders, before any ad spend.
  • Rising means bigger repeat baskets, better product margin, or lower fulfillment and payment costs per order.
  • Falling often follows loyalty discounts, free shipping for members, or a shift toward cheaper replenishment items.
For margin per returning customer instead of per order, divide RC CM2 by Returning Customers yourself.

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Common Pitfalls

  • Treating it as per-customer value. It’s per order. A customer who orders often is worth more than this number over the period.
  • Free shipping for loyalty members in Use Shopify Shipping Charges mode records zero shipping cost and overstates RC CM2.

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FAQ

CM2 per Order averages first and repeat orders together. Repeat orders usually carry fewer welcome discounts, so their margin is often higher.
Yes, as a per-order ceiling. Spending up to that amount to win one more repeat order keeps retention marketing at or above break-even on a variable margin basis.
See all Contribution Margin metrics →