E-commerce · Economics
Repeat-purchase economics
Published · Reviewed by The Diligence Standard Team · Updated
Repeat rate matters only when later orders remain profitable after discounts, returns and lifecycle cost.
Records to reconcile
- Customer cohorts
- Order contribution
- Email, SMS and loyalty cost
Warning signal
Repeat orders rely on heavy promotions or low-margin replenishment.
Transaction impact
Customer quality and lifetime value are weaker than headline retention.
Response
Measure contribution retention and separate organic from incentive-driven repeats.