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Returning Customer Opex is the operating expense Upstack subtracts when it calculates Returning Customer CM4. Opex order fees on repeat orders count in full. Overhead such as payroll and rent is shared with new customers by net revenue.

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Formula

RC Opex = Opex order fees on returning customer orders + returning customer share of Opex Recurring expenses (prorated) and Opex Variable costs (% of ad spend)

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Formula Components

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How It Works

Opex order fees belong to orders, so Upstack counts them here when the order is a returning customer order. Recurring expenses and Variable costs don’t belong to any order. Opex gets their full amount. RC Opex gets a share in proportion to returning customers’ net revenue for the same date (and the same breakdown values, if you split the report by a dimension), and NC Opex gets the rest. See how the split works. The shared part is split, not copied, so NC Opex + RC Opex adds up to Opex, apart from fees on orders with no customer.

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Example

A 30-day month. The store has 1,300 first orders and 3,100 returning orders. Returning customers brought in $169,000 of the store’s $260,000 net revenue, a 65% share. RC Opex is $12,717.50, or about $4.10 per returning customer order ($12,717.50 ÷ 3,100).

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When to Use

See all Contribution Margin metrics →