Metrics
Reorder Rate
Reorder rate is the share of customers or orders that result in a repeat purchase of the same consumable product. It's the headline metric for a replenishment program: a rising reorder rate means the timing, offers, and reorder experience are matching how customers actually consume.
What is Reorder Rate?
Reorder rate is the share of customers or orders that result in a repeat purchase of the same consumable product. Where broader retention metrics count any return, reorder rate focuses narrowly on the same item being bought again — the core behavior a replenishment program is built to drive. It answers a precise question: when customers run out, do they buy more of this product?
The formula is: reorder rate = (customers who repurchased the same product ÷ customers eligible to repurchase) × 100. Some brands measure it on an order basis instead, dividing repeat product orders by total orders. Either basis works as long as it's applied consistently.
A rising reorder rate is the clearest evidence that timing, offers, and the reorder experience are aligned with how customers actually consume the product. A falling or flat reorder rate signals a mismatch — customers are finishing the product and not coming back for more of it.
How do you calculate Reorder Rate?
The most common calculation is customer-based:
Reorder rate = (customers who repurchased the same product ÷ eligible customers) × 100
Worked example: 600 customers bought a particular coffee blend and have had enough time to finish it. Of those, 210 bought the same blend again. Dividing 210 by 600 gives 0.35, and multiplying by 100 yields a reorder rate of 35%. If you measure on an order basis instead, you'd divide repeat orders of that product by total orders of it — just don't mix the two bases within a single comparison.
Why it matters for Shopify brands
Reorder rate is the headline metric for any consumable brand because it isolates the exact behavior that drives profit: customers running out and rebuying the same thing. Acquisition usually only breaks even on the first order, so the reorder is where margin actually accrues. A strong reorder rate means the brand has built a repeatable revenue stream rather than a series of one-off sales.
It's also the most honest test of replenishment timing. If customers consume a product in 30 days but reorders cluster at 70, the brand is missing the window when intent is highest. Watching reorder rate by product surfaces these gaps and shows whether the reorder experience — the right moment, the right offer, an easy path to buy again — is matching real consumption rather than fighting it.
Key takeaways
- Reorder rate is the share of customers or orders that repurchase the same consumable product: (repurchasers ÷ eligible customers) × 100.
- It's the most direct measure of whether a replenishment program's timing and experience match real consumption.
- Because margin accrues on the reorder, a rising reorder rate turns one-off sales into a repeatable revenue stream.
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Frequently asked questions
- What is a good reorder rate?
- A good reorder rate depends on category and consumption speed, but for true consumables it should be high because the product is meant to run out and be rebought. The most useful read is the trend: a reorder rate climbing over time means your timing and reorder experience are aligning with real consumption.
- How do you calculate reorder rate?
- Divide the number of customers who repurchased the same product by the number of customers eligible to repurchase it, then multiply by 100. Some brands measure it on an order basis instead — repeat orders of a product divided by total orders. Pick one basis and apply it consistently.
- What's the difference between reorder rate and repeat purchase rate?
- Repeat purchase rate counts any second purchase across the catalog. Reorder rate narrows to repurchases of the same consumable product, making it a tighter measure of whether replenishment is working. A brand can have a strong repeat rate but a weak reorder rate if customers wander to other products.
- Why is reorder rate the headline metric for replenishment?
- Replenishment programs exist to get the same product back into a customer's hands at the right time. Reorder rate measures exactly that outcome — whether timing, offers, and the reorder experience match how customers consume. A rising reorder rate is the most direct proof a replenishment program is working.