> ## 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 CM2: Repeat Order Variable Margin

> Track Returning Customer CM2 for your Shopify store. Measure margin after fulfillment costs for repeat buyers.

<Tip>
  Returning Customer CM2 measures the variable margin from repeat buyers—CM1 minus fulfillment and transaction costs for returning customer orders.
</Tip>

## Formula

<Info>
  **RC CM2** = **RC CM1** − **RC Fulfillment Costs** − **RC Transaction Costs**
</Info>

### Formula Components

| Metric                                                                                             | Definition                                      |
| -------------------------------------------------------------------------------------------------- | ----------------------------------------------- |
| [**RC CM1**](/reference/metrics/orders/contribution-margin/returning-customer-cm1)                 | Returning customer gross margin                 |
| [**RC Shipping Cost**](/reference/metrics/orders/fulfillment/returning-customer-shipping-cost)     | Shipping costs for returning customer orders    |
| [**RC Handling Cost**](/reference/metrics/orders/fulfillment/returning-customer-handling-cost)     | Handling costs for returning customer orders    |
| [**RC Gateway Cost**](/reference/metrics/orders/transaction/returning-customer-gateway-cost)       | Payment processing fees for returning customers |
| [**customer\_type = returning\_customer**](/data-dictionary/measures-and-dimensions#customer-type) | Filters to repeat buyers                        |

| Metadata        |                                                                      |
| --------------- | -------------------------------------------------------------------- |
| **Type**        | Currency                                                             |
| **Data Source** | [Shopify](/sources/shopify), [Upstack Costs](/sources/upstack-costs) |
| **Aggregation** | Sum                                                                  |

***

## Example

Returning customers generated **\$48,000** CM1 with **\$6,000** fulfillment and **\$3,000** transaction costs.

| Component      | Amount       | Calculation         |
| -------------- | ------------ | ------------------- |
| RC CM1         | \$48,000     | After COGS          |
| RC Fulfillment | \$6,000      | Shipping + handling |
| RC Transaction | \$3,000      | Gateway fees        |
| **RC CM2**     | **\$39,000** | \$48,000 − \$9,000  |

***

## How It Works

RC CM2 shows the contribution margin from returning customers after all variable per-order costs. Since these orders come without additional acquisition cost, RC CM2 flows directly to profit (minus any retention marketing and fixed costs).

***

## When to Use

| Scenario                     | Action                                                 |
| ---------------------------- | ------------------------------------------------------ |
| Measuring retention value    | RC CM2 represents pure contribution from repeat orders |
| Comparing customer economics | Benchmark RC CM2 vs NC CM2                             |
| LTV calculations             | Use RC CM2 for lifetime value projections              |
| Retention investment         | Determine budget for loyalty programs                  |

***

## Related Metrics

| Metric                                                                                   | Relationship                             |
| ---------------------------------------------------------------------------------------- | ---------------------------------------- |
| [RC CM2 %](/reference/metrics/orders/contribution-margin/returning-customer-cm2-percent) | RC CM2 as a percentage of RC net revenue |
| [NC CM2](/reference/metrics/orders/contribution-margin/new-customer-cm2)                 | Variable margin from new customers       |
| [LTV](/reference/metrics/orders/ltv/ltv)                                                 | Customer lifetime value                  |

[See all Contribution Margin metrics →](/reference/metrics/orders/contribution-margin)