Returning Customer Gross Profit: Retention Product Profitability

Track gross profit from returning customers. Understand revenue minus COGS for repeat buyer orders.

Returning Customer Gross Profit measures revenue minus COGS from repeat buyer orders. It shows product-level profitability for retention.

Formula

RC Gross Profit = RC Net Revenue − RC COGS

Formula Components

Metric	Definition
RC Net Revenue	Net revenue from returning customer orders
RC COGS	Cost of goods sold for returning customer orders

Metadata
Type	Currency
Data Source	Shopify
Aggregation	Sum

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Example

Your Shopify store generated $60,000 in returning customer net revenue with $22,000 in COGS.

Metric	Value	Calculation
RC Net Revenue	$60,000	After discounts/refunds
RC COGS	$22,000	Product costs
RC Gross Profit	$38,000	$60,000 − $22,000

A returning customer gross profit of $38,000 represents the product-level profit from retention before operating costs.

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How It Works

RC Gross Profit isolates the gross margin contribution from repeat customer orders. Returning customers often buy different product mixes than new customers, so tracking separately reveals valuable insights.

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When to Use

Scenario	Action
Retention profitability	Understand repeat order gross margin
Product mix analysis	See if returning customers buy high-margin products
LTV contribution	Track gross profit contribution from repeat purchases
NC vs RC comparison	Compare acquisition vs retention gross margins

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Related Metrics

Metric	Relationship
Gross Profit	Total gross profit for all orders
NC Gross Profit	Gross profit from new customers
RC Contribution Margin	RC gross profit minus variable costs
RC COGS	The cost component subtracted

See all Contribution Margin metrics →