E-commerce

Repeat purchase rate

The share of customers who buy again within a period.

What it is

It reflects product satisfaction and retention work such as email, and it drives lifetime value.

For e-commerce

A store with strong repeat buying can afford to pay more for the opening order, because the customer returns.

FormulaRepeat purchase rate = customers with 2+ orders / all customers

Divide customers with two or more orders by all customers, for a cohort and a period.

Counting repeat purchases driven by ads as retention, and paying acquisition prices to win back customers already won.