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Repeat Customer

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A repeat customer is a buyer who has made more than one purchase from the same online store, as distinct from a first-time buyer completing an initial order.

The term applies once a shopper returns to buy again, regardless of how much time passes between orders or what they purchase the second time. Repeat customers are typically measured through the customer lifetime value they generate, since each additional order lowers the average cost of acquiring revenue from that shopper.

A repeat customer differs from a loyal customer: repeat purchasing describes an observed behavior, while loyalty implies a deliberate preference for the brand over competitors. In dropshipping and small ecommerce stores, repeat customer rate is often tracked alongside churn rate as a core signal of store health, since new-customer acquisition through paid ads tends to cost more than retaining an existing buyer.

Example

A dropshipping store selling pet accessories records a shopper’s second order 45 days after their first purchase of a dog leash. Because that shopper returns to buy a matching collar without clicking a paid ad, the store counts them as a repeat customer and attributes the second sale to retention rather than acquisition. Over a year, the store finds that repeat customers account for a disproportionate share of total revenue relative to their share of total buyers.

Key characteristics

Lower acquisition cost: No additional ad spend or marketing outlay is needed to generate the sale, since the customer already exists in the store’s database.
Higher average order value: Repeat customers tend to spend more per transaction than first-time buyers because they already trust the store.
Measured over a defined window: Stores typically define a repeat customer rate over a fixed period, such as 90 or 365 days, rather than an unlimited timeframe.
Driven by post-purchase experience: Product quality, shipping speed, and customer service after the first order determine whether a buyer returns.

Related terms

Customer retention – the broader set of strategies and metrics used to keep existing customers buying again.
Churn rate – the percentage of customers who stop buying from a store over a given period, the inverse concept to repeat purchasing.
Customer lifetime value – the total revenue a store expects from a customer across every purchase, including repeat orders.
Customer segmentation – the practice of grouping customers, including repeat buyers, by shared traits to target them with different offers.

Frequently asked questions

What percentage of customers should be repeat customers?

There is no universal benchmark, but many ecommerce stores treat a repeat customer rate between 20 and 30 percent as healthy, with the exact figure varying by product category and price point.

How is repeat customer rate calculated?

Repeat customer rate is typically calculated by dividing the number of customers with more than one order in a given period by the total number of customers in that same period.

Is a repeat customer the same as a loyal customer?

Not necessarily. A repeat customer has purchased more than once, while a loyal customer actively prefers the brand and may resist switching to a competitor even at a higher price.

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FAQ

What is a repeat customer in ecommerce?

A repeat customer is someone who places more than 1 order with the same store rather than shopping there a single time. Stores track this group separately from first time buyers because it is not tied to a paid ad campaign. Many stores review repeat customer counts on a 90 day or 365 day basis. A shopper who buys twice within that window is counted as a repeat customer even if the order sizes differ.

How do stores increase repeat customer rate?

Stores increase repeat customer rate by improving the post purchase experience, including faster shipping and responsive support. Many stores send a follow up email 7 to 14 days after delivery to prompt a second order. Offering a small discount, such as 10 percent off the next purchase, is a common tactic. Loyalty programs that reward a third or fourth order also raise repeat purchase rates over a 6 month period.

Why are repeat customers valuable for a dropshipping store?

Repeat customers are valuable because acquiring a new customer through paid advertising often costs 3 to 5 times more than retaining an existing one. A dropshipping store with thin per unit margins depends on repeat orders to raise total profit per customer. If 20 percent of customers return for a second order, average revenue per customer rises without any new ad spend. This makes repeat customer rate a leading indicator of long term store profitability.

What is a good repeat customer rate?

There is no single number that applies to every store, but a repeat customer rate of 20 to 30 percent is common for general ecommerce stores. Subscription based or consumable product stores often see rates above 40 percent. New dropshipping stores frequently start below 10 percent and improve the figure over the first 12 months. The right target depends on product category, average order value, and how often the product is naturally repurchased.

How does repeat customer rate differ from churn rate?

Repeat customer rate measures the share of customers who buy again, while churn rate measures the share of customers who stop buying within a set period. The two figures are related but not identical, since a store can have a 25 percent repeat rate and a 60 percent churn rate over the same 12 months, depending on how the periods are defined. A rising repeat rate generally points to a falling churn rate over time. Stores track both figures together to get a fuller picture of customer behavior.