Returning Customer Gross Profit measures revenue minus COGS from repeat buyer orders. It shows product-level profitability for retention.
RC Gross Profit = RC Net Revenue − RC COGS
| Metric | Definition |
|---|
| RC Net Revenue | Net revenue from returning customer orders |
| RC COGS | Cost of goods sold for returning customer orders |
| Metadata | |
|---|
| Type | Currency |
| Data Source | Shopify |
| Aggregation | Sum |
Example
Your Shopify store generated $60,000 in returning customer net revenue with $22,000 in COGS.
| Metric | Value | Calculation |
|---|
| RC Net Revenue | $60,000 | After discounts/refunds |
| RC COGS | $22,000 | Product costs |
| RC Gross Profit | $38,000 | $60,000 − $22,000 |
How It Works
RC Gross Profit isolates the gross margin contribution from repeat customer orders. Returning customers often buy different product mixes than new customers, so tracking separately reveals valuable insights.
When to Use
| Scenario | Action |
|---|
| Retention profitability | Understand repeat order gross margin |
| Product mix analysis | See if returning customers buy high-margin products |
| LTV contribution | Track gross profit contribution from repeat purchases |
| NC vs RC comparison | Compare acquisition vs retention gross margins |
| Metric | Relationship |
|---|
| Gross Profit | Total gross profit for all orders |
| NC Gross Profit | Gross profit from new customers |
| RC Contribution Margin | RC gross profit minus variable costs |
| RC COGS | The cost component subtracted |
