Retention & Churn

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Repeat Purchase Rate

Q: What is repeat purchase rate?

Repeat purchase rate is the percentage of customers who place two or more orders within a defined time window. It measures how effectively you convert first-time buyers into returning customers.

Q: What is a good repeat purchase rate for e-commerce?

It depends on the category. Grocery and consumables target 60%+. Fashion targets 40%+. Beauty targets 45%+. Electronics is naturally lower at 20%+ due to longer purchase cycles.

Q: How can I improve repeat purchase rate?

Use post-purchase email sequences, loyalty programs, subscription options, personalized product recommendations, and reorder reminders. Each tactic targets a different reason customers don't return.

Q: How does repeat rate affect LTV?

Repeat rate directly multiplies LTV. If AOV is $50 and customers average 1.3 purchases, LTV is $65. Improving to 2.0 purchases raises LTV to $100 — a 54% increase with zero change in AOV or acquisition cost.

Repeat purchase rate is the percentage of customers who make two or more purchases. Fashion e-commerce targets above 40%. Grocery targets above 60%. Improving repeat rate from 25% to 40% fundamentally changes unit economics by amortizing customer acquisition cost across more purchases.

Why Repeat Rate Matters

Acquiring a new customer costs 5-7x more than retaining an existing one. A repeat rate of 30% means 70% of your customers buy once and never return — you are essentially paying full acquisition cost for every sale. Improving repeat rate from 25% to 40% doesn't just increase retention — it fundamentally changes your unit economics by amortizing CAC across more purchases, increasing LTV, and reducing dependence on paid acquisition.

How to Calculate Repeat Rate

Divide the number of customers who made 2+ purchases by the total number of customers in a cohort over a given time window. Use a consistent window (90 days, 6 months, or 12 months).

Repeat Rate Formula

Repeat Rate = Customers with 2+ Orders ÷ Total Customers × 100%

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Customers with 2+ Orders

Total Customers

Repeat Purchase Rate

30%

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Industry Benchmarks

Segment	Good	Average	Poor
Fashion / Apparel	>40%	25–40%	<25%
Grocery / Food	>60%	40–60%	<40%
Beauty / Health	>45%	30–45%	<30%
Electronics	>20%	10–20%	<10%

Expert Tips

The single most impactful tactic for repeat rate is post-purchase email sequences — a well-timed reorder reminder can lift repeat rate by 10-15 percentage points.

Loyalty programs work, but only if the reward is achievable. Programs where customers need 20+ purchases for a reward have low engagement.

Track repeat rate by cohort month. If newer cohorts have higher repeat rates, your product experience and retention efforts are improving.

Subscription or auto-replenish options convert one-time buyers into recurring revenue. Even a 5% subscription conversion rate meaningfully lifts blended repeat rate.

Frequently Asked Questions

What is repeat purchase rate?

Repeat purchase rate is the percentage of customers who place two or more orders within a defined time window. It measures how effectively you convert first-time buyers into returning customers.

What is a good repeat purchase rate for e-commerce?

It depends on the category. Grocery and consumables target 60%+. Fashion targets 40%+. Beauty targets 45%+. Electronics is naturally lower at 20%+ due to longer purchase cycles.

How can I improve repeat purchase rate?

Use post-purchase email sequences, loyalty programs, subscription options, personalized product recommendations, and reorder reminders. Each tactic targets a different reason customers don't return.

How does repeat rate affect LTV?

Repeat rate directly multiplies LTV. If AOV is $50 and customers average 1.3 purchases, LTV is $65. Improving to 2.0 purchases raises LTV to $100 — a 54% increase with zero change in AOV or acquisition cost.

Related Metrics

Unit Economics

LTV

Customer Lifetime Value is the total revenue (or profit) a business expects to e...

Revenue

AOV

Average Order Value is the mean revenue generated per transaction. It is the fun...

Acquisition

CAC

Customer Acquisition Cost is the total cost of acquiring a new paying customer, ...

Unit Economics

CAC Payback

CAC Payback Period is the number of months required to recover the cost of acqui...

Business Models Using Repeat Rate

Repeat Rate is a key metric for these business types. Click any model to see how Revenue Map calculates it automatically.

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