New Customer CM1: First-Order Gross Margin

Track New Customer CM1 for your Shopify store. Measure gross margin from first-time buyers.

New Customer CM1 measures the gross margin from first-time buyers—net revenue minus COGS for new customer orders only.

Formula

NC CM1 = NC Net Revenue − NC Total COGS

Formula Components

Metric	Definition
NC Net Revenue	Net revenue from new customer orders
NC Total COGS	Cost of goods sold for new customer orders
customer_type = new_customer	Filters to first-time buyers

Metadata
Type	Currency
Data Source	Shopify, Upstack Costs
Aggregation	Sum

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Example

Your Shopify store acquired new customers with $50,000 net revenue and $18,000 in COGS.

Component	Amount	Calculation
NC Net Revenue	$50,000	First-time buyer revenue
NC COGS	$18,000	Product costs
NC CM1	$32,000	$50,000 − $18,000

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How It Works

NC CM1 isolates the gross margin generated specifically from new customer orders. This helps evaluate whether your customer acquisition is profitable at the product level—before considering fulfillment and marketing costs.

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When to Use

Scenario	Action
Evaluating acquisition profitability	Ensure NC CM1 covers acquisition costs
Comparing customer segments	Measure NC vs RC gross margin
Setting CAC targets	Use NC CM1 as the ceiling for acquisition cost
Product mix analysis	See which products new customers buy

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Related Metrics

Metric	Relationship
NC CM1 %	NC CM1 as a percentage of NC net revenue
RC CM1	Gross margin from returning customers
CAC	Cost to acquire new customers

See all Contribution Margin metrics →