In one sentence
Repeat purchase rate is the share of your customers who have bought from you more than once in a given period, and it shows how well your store turns first orders into lasting customers.
How to calculate repeat purchase rate
Repeat purchase rate = customers with more than one order divided by total customers, for the same period.
If 2,000 people bought from you this year and 500 of them ordered more than once, your repeat purchase rate is 25%.
Pick a period that fits how often people need your product. Coffee might use 90 days. Furniture might need two years.
Why repeat purchase rate matters for ecommerce brands
Winning a new customer costs more than keeping one. Customers who come back raise customer lifetime value and make your ad spend go further.
A falling rate is an early warning: something in the product, delivery or follow-up isn't bringing people back.
How to raise your repeat purchase rate
- Send post-purchase emails that help customers use what they bought.
- Time reorder reminders to when the product runs out.
- Offer subscriptions for products people buy on a schedule.
- Use cohort analysis to see which first products lead to second orders.
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