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The total cost of processing payments for returning customer orders, combining gateway fees and any additional user-defined transaction costs.

Formula

Formula Components

MetricDefinition
Returning Customer Gateway CostPayment gateway processing fees for returning customer orders
Returning Customer Other Transaction CostUser-defined transaction costs from order cost entries for returning customers
Metadata
TypeCurrency
Data SourceShopify
AggregationSum

Example

Your store processed 1,256 returning customer orders in April with $4,892 in total transaction costs:
ComponentAmount% of RC Revenue
RC Gateway Cost$3,8412.8%
RC Other Transaction Cost$1,0510.8%
RC Total Transaction Cost$4,8923.6%
Transaction costs for returning customers are typically lower as a percentage of revenue compared to new customers due to higher average order values.

How It Works

Returning Customer Transaction Cost aggregates all payment-related fees specifically for repeat buyer orders. Gateway costs are pulled from Shopify’s transaction data for orders where the customer has at least one prior purchase. Other Transaction costs come from user-defined order cost entries with the “Transaction” category. This metric is deducted from RC CM1 to calculate RC CM2.

When to Use

ScenarioAction
Calculating retention profitabilityInclude in true lifetime value analysis
Comparing customer segmentsBenchmark RC vs. NC transaction costs
Unit economics modelingFactor into per-returning-customer profitability
Payment method optimizationIdentify if returning customers use lower-cost payment methods

MetricRelationship
Returning Customer Gateway CostComponent: payment processor fees for returning customers
Returning Customer Other Transaction CostComponent: user-defined transaction costs for returning customers
Total Transaction CostAll customers’ transaction costs combined
New Customer Total Transaction CostCompare to new customer transaction costs
See all Transaction Cost metrics →