Skip to main content
The percentage of first-time buyer revenue remaining as gross profit after subtracting product costs.

​
Formula

New Customer Product Margin % = ( New Customer Gross Revenue − New Customer COGS ) ÷ New Customer Gross Revenue × 100

​
Formula Components

​
Example

A supplement brand analyzes first-time buyer margins across quarters: Q3’s higher margin (68%) indicates improved product mix or cost efficiency for new customers.

​
How It Works

This metric calculates the percentage of gross revenue retained after product costs for new customer orders only. It divides the difference between New Customer Gross Revenue and New Customer COGS by gross revenue, then multiplies by 100. Higher percentages mean more margin retained per dollar of new customer revenue.

​
When to Use

See all Product Margin metrics →