What Is a Repeat Purchase Rate?
The Repeat Purchase Rate (RPR) is the percentage of customers who return to buy from a business again after their first purchase. Unlike customer acquisition metrics that focus on bringing in new buyers, the RPR is a strong indicator of how well a business retains its customers. This metric reflects customer satisfaction, brand loyalty, and the effectiveness of post-purchase engagement strategies.
For businesses, an improved RPR often translates to predictable revenue, reduced marketing expenses, and enhanced customer lifetime value (CLV).
Why Are Repeat Customers Important?
Repeat customers bring a wealth of benefits to any business, making them a key focus for retention strategies:
Higher Spending
Studies consistently show that repeat customers spend more per transaction than first-time buyers. As they become familiar with your offerings, they are likely to purchase higher-ticket items or larger quantities.
Lower Acquisition Costs
Acquiring a new customer can cost five to seven times more than retaining an existing one. (Check out our article on how to market a Shopify store to get an idea of various marketing channels,) Repeat customers reduce the need for extensive marketing efforts, freeing up resources for other initiatives.
Free Word-of-Mouth Marketing
Satisfied customers act as brand advocates, sharing their positive experiences with others. This can drive organic growth and build trust among potential customers.
Predictable Revenue
With a solid base of repeat customers, businesses enjoy more stable and predictable revenue streams, allowing for better financial planning and investments.
What Is a Good Repeat Customer Rate?
A “good” repeat customer rate is highly individual and depends on various factors unique to your business:
Product type: Consumables and items designed for frequent use are expected to have higher repeat rates compared to one-time purchase items.
Customer lifecycle: Products or services with a short lifecycle, like skincare, encourage faster repurchases than products like vehicles or appliances.
Business model: For subscription-based models or businesses with built-in recurring revenue streams, higher rates are naturally expected, whereas businesses relying on one-off purchases might focus more on customer acquisition.
Average Repeat Purchase Rate
Businesses offering consumable or frequently used products tend to see higher repeat rates since customers naturally need to repurchase. On the other hand, companies selling high-ticket or less frequently used items may have lower rates due to the nature of their products' longer life cycles.
For instance:
Subscription services: These often have naturally higher repeat rates because of their recurring purchase structure.
Daily-use products: Items like groceries, toiletries, or household essentials encourage frequent repurchases.
Luxury or high-cost goods: Items like electronics, furniture, or appliances tend to have lower repeat rates as they are less frequently replaced.
This variance shows the importance of comparing your repeat rate not just to general trends but to businesses within your specific niche.
Repeat Purchase Rate by Industry
Here’s a closer look at RPR statistics across some common e-commerce sectors:
Apparel and Fashion
In 2024, apparel and accessories had an impressive 80% repurchase rate on WeChat Channels in China [1]. Meanwhile, in the US and UK, nearly half of online shoppers buy clothes once a month, and 29% shop for them twice a month as of 2022 [2].
[1] Statistic: Repurchase rate on WeChat Channels in China as of April 2024, by item type
[2] Statistic: Shopping frequency for purchasing apparel among online shoppers in the United States and United Kingdom (UK) as of 2022
Health and Beauty
In the U.S., Sephora and ULTA are customer favorites with an 88% repeat purchase rate, while Bath & Body Works isn’t far behind at 85% [1]. In Europe, beauty shopping habits differ—33% of customers buy once a month, while 34% shop every two to three months [2].
Sources:
[1] Forecast: Beauty and health online shops loyalty in the United States in 2023, by brand
[2] Statistic: Frequency in which e-shoppers purchased beauty and health care products online in Europe in 2023
Electronics and Technology
In China, WeChat Channels saw a 71% repurchase rate for electronics and cosmetics in 2024 [1]. Globally, top-performing direct-to-consumer brands achieved a 45% repurchase rate from first to second order, increasing to 62% for second to third order in 2022 [2].
Sources:
[1] Statistic: Repurchase rate on WeChat Channels in China as of April 2024, by item type
[2] Statistic: Repurchase rate of top performing direct-to-consumer (D2C) brands worldwide in 2022
Food and Beverage
In 2023, 53% of people around the world kept buying sustainable packaged food and drinks as often as before, while 29% bought less and 18% bought more [1]. In the U.S., during the early days of the COVID-19 pandemic in 2020, first-time buyers of wine and beer turned into repeat customers, with a 21% increase in purchases [2].
Sources:
[1] Statistic: Global consumer purchasing frequency of sustainable packaged food and beverages in the past 12 months as of 2023
[2] Statistic: New alcoholic beverage repeat buyer growth during the coronavirus outbreak in the United States in March 2020
Home and Garden
In 2022, top D2C brands saw impressive customer loyalty. 45% of customers placed a second order, 62% placed a third, and 81% kept coming back by their fifth order [1].
In the U.S., DIY and garden stores also showed high loyalty in 2023. The Home Depot led with 91% of customers planning to repurchase within a year, followed by Lowe's at 87% [2].
Sources:
[1] Statistic: Repurchase rate of top performing direct-to-consumer (D2C) brands worldwide in 2022
[2] Forecast: DIY and garden online shops consumer loyalty in the United States in 2023, by brand
Toys and Games
In the United States, 23% of respondents stated they frequently buy toys second-hand, while 40% do so rarely [1]. In Canada, 31.71% of consumers purchase used toys and/or games a few times a year, with 5.91% doing so monthly and 5.13% weekly [2].
Sources:
[1] Forecast: How often do you buy toys second hand?
[2] Statistic: How often do you buy toys or games second hand?
Books, Music, and Media
In the Netherlands, 22% of respondents buy new books 1-2 times per quarter, while 20% never purchase new books [1]. In South Korea, 27.8% have purchased physical music albums in 2024, down from 37.6% in 2023 [2]. Among those who buy physical albums, 46.1% do so once or twice a year [3].
Sources:
[1] Statistic: Distribution of new book purchases in the Netherlands as of February 2024, by frequency
[2] Statistic: Rate of purchase of physical music albums in South Korea from 2019 to 2024
[3] Statistic: Frequency of buying physical music albums in South Korea as of June 2024
Fitness and Sports Equipment
Regarding repeat purchase rates, 14% of U.S. consumers reported buying fitness gear in the fall and spring of 2024, a slight increase from previous seasons [1]. In terms of purchase frequency, 6% of respondents buy sports equipment more than once a month, while 12% purchase up to every 3 months [2].
Sources:
[1] Statistic: Consumers who purchased fitness equipment in the past month in the United States from 2021 to 2024, by season
[2] Forecast: How often do you buy sports equipment and gear?
Pet Products
By 2024, over 50% of millennial and Gen Z pet owners were purchasing pet products online [1]. Regarding repeat purchases, 53.7% of Canadian pet owners buy toys for their pets a few times a year, while 20.2% do so monthly [2].
Sources:
[1] Topic: Statistics and facts on generational pet market in the U.S.
[2] Statistic: How often owners buy toys for their pet in Canada in 2018
Jewellery and Accessories
In China, apparel and accessories had the highest repurchase rate on WeChat Channels at 80% [1]. In Europe, luxury jewelry purchases among affluent consumers have increased, with 32.6% making multiple purchases in Q1 2024, up from 17.6% in Q4 2023 [2].
Age plays a significant role in repeat purchases. In Europe, 45.8% of luxury shoppers aged 18-39 made multiple jewelry purchases, compared to 27.9% for those 40 and older [3]. Similarly, in North America, 55.3% of 18-39 year-olds made multiple luxury jewelry purchases, versus 37.3% for those 40+ [4].
Sources:
[1] Statistic: Repurchase rate on WeChat Channels in China as of April 2024, by item type
[2] Statistic: Frequency of luxury jewelry purchases among affluent consumers (excluding watches) in Europe from 4th quarter 2020 to 1st quarter 2024
[3] Statistic: Frequency of luxury jewelry purchases among affluent consumers in Europe in the 1st quarter 2024, by age group
Healthcare and Pharmaceuticals
Top direct-to-consumer brands see a clear trend in customer loyalty. After a first purchase, 45% of customers make a second order. This jumps to 62% for a third order and reaches 81% by the fourth or fifth order [1]. This shows how loyalty grows over time, especially in health-related markets, and could influence repeat purchases in the pharmaceutical industry.
Sources:
[1] Statistic: Repurchase rate of top performing direct-to-consumer (D2C) brands worldwide in 2022
How to Calculate Repeat Purchase Rate
To calculate the repeat purchase rate, divide the number of returning customers by the total number of customers and multiply the result by 100 to express it as a percentage. You can calculate this metric over various time frames, such as daily, weekly, or monthly, depending on your business needs.
As an example, let's say your business had 1,000 total customers in a given period, and 300 of them made more than one purchase during the same timeframe. Your RPR would be calculated as follows:
This means 30% of your customers returned to make a repeat purchase, which is a positive indicator of loyalty.
Note: you should only include paying customers who placed an order rather than customers who may have added items to basket but not checked out.
Shopify Repeat Purchase
For those using Shopify, monitoring and improving your repeat purchase rate is made easier with the Shopify's analytics tools. Shopify provides merchants with detailed reports that track customer behaviours, including first-time and repeat purchases.
One of the key graphs that Shopify analytics has is the "Returning customer rate". You can access this by navigating to your Shopify store > click on Analytics on the left sidebar > scroll down until you find the relevant graph. You can also customise the analytics section by moving the graphs around so if "Returning customer rate" is important for you, you can move it to the top.
Another useful metric is to see the percentage of first time buyers vs repeat purchasers. There is a useful chart for that in analytics also.
By utilising Shopify analytics you can identify high-value repeat customers and analyse purchase trends over time. This allows you to then implement retention campaigns via email marketing to target certain customers.
A Happy Customer is a Repeat Customer
The foundation of a strong Repeat Purchase Rate lies in customer satisfaction. When customers have a positive experience, they’re more likely to return and recommend your business. Here’s how to ensure your customers remain happy:
Deliver Exceptional Customer Service
Responsive and empathetic customer service builds trust and loyalty. Addressing issues promptly and effectively can turn a dissatisfied customer into a loyal advocate. Exceptional service fosters a positive perception of your brand and encourages repeat purchases.
Offer Personalised Experiences
Using data insights to tailor communication and recommendations makes customers feel valued. Personalisation, whether through targeted emails, product suggestions, or exclusive offers, strengthens the emotional connection between your brand and the customer, increasing the likelihood of future purchases.
Incentivise Loyalty
Loyalty programmes, exclusive discounts, and rewards for repeat purchases motivate customers to return. Offering tiered benefits or special perks for long-term customers adds further incentive, solidifying their commitment to your brand.
Maintain Product Quality
High-quality products consistently delivered ensure customer satisfaction and trust. Conversely, inconsistent or poor quality leads to frustration, negative reviews, and lost customers. Ensuring product excellence is key to fostering repeat business.
Follow Up After Purchase
Engaging with customers post-purchase demonstrates that you value their business. Thank-you emails, feedback requests, and timely reminders to reorder products show care and keep your brand top of mind, encouraging them to return.
Leverage Social Proof and User Reviews
Social proof, in the form of user reviews, testimonials, and other user-generated content, plays a vital role in building trust and encouraging repeat purchases. Customers are more likely to buy again when they see positive feedback from others who have had great experiences.
Simplify Reordering
Ease of reordering significantly impacts RPR. Features like one-click purchases, subscription models, or personalised recommendations simplify the process, making it convenient for customers to buy again. A hassle-free experience increases repeat transactions.
Account for Seasonality
Seasonal factors can influence repeat purchases. For example, industries like fashion or toys may see repeat customers return for new collections or during holiday periods. Understanding these trends allows businesses to tailor campaigns and maximise retention during peak times.
Understanding and improving your Repeat Purchase Rate is crucial for building a loyal customer base and ensuring the long-term success of your online store.
Having trouble converting customers in the first place? Take a look at our guide to find out how you can increase your conversion rate.
