Returning Customer Product Margin: Repeat Buyer Profitability

The total product margin generated by returning customer orders, calculated as gross revenue minus cost of goods sold.

Formula

Returning Customer Product Margin = Returning Customer Gross Revenue − Returning Customer COGS

Formula Components

Metric	Definition
Returning Customer Gross Revenue	Gross revenue from repeat buyers before discounts and refunds
Returning Customer COGS	Cost of goods sold for returning customer orders

Metadata
Type	Currency
Data Source	Shopify
Aggregation	Sum

Example

Your returning customers generated $28,400 in product margin last month:

Segment	Gross Revenue	COGS	Product Margin
Returning Customers	$85,200	$56,800	$28,400
New Customers	$42,100	$29,470	$12,630

How It Works

Returning Customer Product Margin captures the gross profit from repeat buyers at the product level. It subtracts Returning Customer COGS from Returning Customer Gross Revenue, showing how much you keep after product costs. This metric excludes fulfillment, transaction fees, and marketing costs.

When to Use

Scenario	Action
Measuring retention value	Compare RC margin to NC margin to see if repeat buyers are more profitable
Evaluating loyalty economics	High RC margin indicates sustainable retention without heavy discounting
Setting retention goals	Use as a target for retention campaigns and loyalty programs
Analyzing customer mix impact	Track how shifts in NC/RC ratio affect overall profitability

Metric	Relationship
New Customer Product Margin	Same calculation for first-time buyers
Product Margin	Total product margin across all customers
Returning Customer Gross Revenue	Revenue component of this calculation
Returning Customer COGS	Cost component subtracted from revenue

See all Product Margin metrics →

NC Product Margin %Performance

⌘I

​Formula

​Formula Components

​Example

​How It Works

​When to Use

​Related Metrics

Formula

Formula Components

Example

How It Works

When to Use

Related Metrics