Retention rate

Retention rate (also reorder rate or repeat purchase rate) is the share of customers who shop more than once from an ecommerce website compared to the total number of customers. Retention rate is a huge indicator of ecommerce performance as it measures:

  • How loyal customers are
  • How well your efforts manage to retain customers—é
  • How much people like your products

Higher retention rate means higher ROI on acquisition costs paid. It also helps keep your cash flow predictable with regular customers. 

The formula for calculating retention rate is:

RPR = Repeat buyers number/ Total number of buyers

Here’s the average retention rate by niche as per our recent survey:

Tea 21%
Own food products 24.5%
Beauty 26%
Apparel 26%
Meal delivery 29%
Supplements 29%
Coffee 30%
Pet products 31.5%
High-performance sports clothing 33%
CBD 36%
Average 28%

We recommend using a retention analysis tool to monitor your retention rate.

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