E-commerce tips
Increase repeat purchases: A complete guide for Shopify merchants
By
Emma
on
July 25, 2025
Table of content
- Repeat purchase definition: What it is and why it matters
- Benefits of having customers make repeat purchases
- How to calculate the repeat purchase rate
- Understand customer behavior to drive repeat purchases
- Most common strategies for increasing repeat purchases (With real-life examples)
- Final thoughts
- Your store credit powerhouse for e-commerce success
- FAQs
Increasing repeat purchases has always been the ultimate goal for merchants and retailers. Not only do returning customers save you money, but they're also seriously more valuable to your business over time. According to business.com, acquiring new customers costs 5 to 10 times more than selling to current customers, who spend 67% more compared to those new to your business.
But here's the catch. Getting people to come back isn't easy. What works for one business might flop for another. Think about it: a coffee shop needs daily visits, but furniture stores might see customers once every few years. Different businesses need different plans.
That's why you need to know your customers well. You need to pick the right ways to bring them back.
In this article, we’ll break down what repeat purchase means, how to calculate it for your store, the psychology that drives customers to buy again, and the best strategies to boost your repeat purchase rates.
Repeat purchase definition: What it is and why it matters
A repeat purchase is when customers buy from the same brand more than once. They might purchase the same products or services as before, or try something different offered by that brand.
This differs from brand switching, which is the act of switching from one brand to another within the same product category. Regardless, repeat purchase is the result of when someone likes what you're offering so much that they come back for more.
Repeat purchase is a typical example of brand loyalty. When a repeat customer decides to trust you, they tend to buy more and build an ongoing relationship with your business. Based on a report by Smile.io, repeat customers spend twice as much per order compared to new customers and one-time buyers.
This makes repeat customers not just nice to have, but essential for sustainable business growth. Let's dive into the specific benefits that make focusing on repeat customers one of the smartest moves you can make as a Shopify merchant.
Benefits of having customers make repeat purchases
While most merchants get caught up in attracting new customers, the real magic happens when they decide to come back for more. The most obvious benefits of repeat purchase include:
Lower marketing costs: When people already know and trust your brand, you don't need to spend much to convince them to buy again. According to Demandsage, retaining existing customers is also five times more cost-effective than acquiring new ones. This means you can spend your marketing money on making current customers happy instead of chasing strangers.
More money over time: Customers who buy again and again spend more with you as time goes on. Instead of earning one-time revenue from casual customers, you get steady sales from people who keep coming back. As a result, your Customer Lifetime Value also increases, since this metric measures how much a customer is worth to your business throughout their entire relationship with you.
Better word-of-mouth: Repeat customers are your best salespeople. When people truly love what you do, they start telling others about you. But this doesn't just happen. You need to give them great experiences that make them excited to share. Things like referral programs and special discounts help encourage this sharing.
Steady growth: When you have loyal customers, your revenue becomes easier to predict. These customers also help your business grow faster. They try new products, write good reviews, and bring their friends. This creates a cycle that keeps bringing in more money.
More sales per visit: Every time a customer returns, you have another chance to introduce them to special deals or complementary products you have to offer. Because they already trust you, they’re more likely to consider these recommendations, leading to higher average order values and greater overall revenue.
How to calculate the repeat purchase rate
The repeat purchase rate, often called repeat rate or repurchase rate, measures how many percent of your past customers come back within a specific period. This tells you how likely your customers are to return after their first purchase, giving you insight into your store’s retention performance.
But you need to be mindful that your product offering will have an impact on your repeat purchase rate. For instance, your repeat rate will be higher if you sell affordable or perishable goods, like toiletries. Conversely, your rate will be much lower for high-value goods such as tech products or luxury items.
Repeat purchase rate formula
The number of repeating customers means that a customer who has made more than one purchase, while the total number of customers is all of your paying customers within a period of time. Remember to clear out customers who create an account just to have items sitting in their basket. Also, keep in mind that repeat customers can span across different periods, as long as they continue to come back for what you offer.
Let’s take a look at this example: If your business has a total of 600 new paying customers in 5 months, with 200 of those having made repeat purchases, then the repeat purchase rate for your business would be 33.3%.
Since no two brands are the same, you should also consider a timeframe that aligns with your products and customer behaviour. For high-frequency and perishable items, you might define a repeat customer as someone who makes multiple purchases within 6 months. On the other hand, low-frequency and high-value items can extend longer, up to several years.
How to collect relevant data on Shopify
To find information relating to the repeat purchase rate on Shopify, go to Analytics > Reports. On the Reports page, click on the Category dropdown, and you should see a Customers option to filter the reports that display only Customers reports.
There are 2 reports that you could use to view or calculate your repeat purchase rate:
New vs returning customers: Displays the number of first-time and returning customers for a given period of time. This report table will display two rows for each time unit when there are both types of customers: one for first-time customers and one for returning customers.
Returning customer rate over time: Like the name indicates, this metric shows the percentage of customers who have made more than one purchase, along with how this rate has changed over a given period. It is often presented in a box or chart that breaks down the proportion of first-time customers versus returning customers.
What is considered a good repeat purchase rate?
If you’re wondering what a good repeat purchase rate is, there’s no single correct answer to this question.
However, research from Metrilo (which looked at data from thousands of e-commerce stores) found that most businesses see around 28.2% of their customers making a second purchase. But here's the thing – this number bounces around quite a bit depending on your industry.
Let’s look at the benchmark for repeat purchase rates in some of the most popular sectors:
When you have a high repeat purchase rate, it means your customers are happy and they're buying more from you. But you need to keep a close eye on this number.
💡 If your repeat purchase rate is much lower than the benchmark, you’ll want to invest in your product and marketing to grow your customer base. On the other hand, if your rate is unusually high, such as reaching 100%, it might indicate that you are not gaining new customers for some time, and that should be bad news for you.
Always check other relevant metrics and look for possible explanations to justify your repeat purchase rate, especially if you notice any anomalies.
Understand customer behavior to drive repeat purchases
Customers make repeat purchase behaviours for both practical and emotional reasons. That’s why you need to understand these motivations to encourage repeat purchase intention from your customers.
Here are some of the key factors of repeat purchases:
Loving good deals: Everyone loves offers and deals. Whether through percentage discounts, buy-one-get-one offers, people feel good when they save money. And when people feel like they got a great deal? They walk away with a smile and good feelings about your brand. That's what brings them back.
Enjoying easy shopping: According to PwC, 43% of consumers would pay more for greater convenience. Think about it: when your checkout is super smooth, you offer flexible payment options, and your delivery is fast and reliable, customers feel valued. This makes them happy to spend more with you.
Feeling special: When customers feel valued as more than just another sale, they build a stronger bond with your brand. This personal touch makes them want to come back. In fact, MobiLoud states that around 60% of consumers are more likely to become repeat buyers after receiving a personalized experience.
Connecting with brands they believe in: When customers resonate with a brand’s mission, perception, or community, they gain a sense of belonging that makes switching to a competitor feel like a betrayal. This concept of brand love transforms buyers into loyal advocates who view their purchases not just as mere transactions, but as reflections of their identity. Typical examples include iconic brands like Apple, Harley-Davidson, and Sephora with devoted fan bases who proudly associate themselves with these brands.
Most common strategies for increasing repeat purchases (With real-life examples)
Set up customer loyalty program
Another way you can encourage repeat purchases is through loyalty programs. They are a simple but powerful way of saying "thank you for shopping with us again.” Loyalty programs tap into something many people respond to: getting rewarded for their continued support. When done right, these programs make customers feel good about your brand and want to return.
SSENSE is a great example of this. The Canadian fashion boutique doesn’t just reward points for purchases. They create three levels that make customers feel special. The higher your level, the more perks you get. This is smart because spending money feels like earning your way to something better.
But be careful when setting up loyalty programs. Customers need to buy several times before getting rewards. If the benefits aren't clear or easy to get, people lose interest fast. Make sure your program is easy to understand. Tell customers exactly what they get and how to get it. At the same time, design a reward system that feels valuable without giving away so much that you lose money.
Here’s the bigger problem: Most loyalty programs are often treated as afterthoughts. Many businesses don't think about what customers really want. Some companies don't even have enough data about their customers. So they end up giving the same deals to everyone. In fact, Arrivia points out that 80% of program executives in the US feel their program is too similar to others in the industry.
Engage with customers after purchases through discounts
The person who just purchased from you is your most likely next repeat customer. But, this is when your customers are most vulnerable to buyer’s remorse, the feeling of regret, anxiety, or guilt that can arise after making a purchase. If you disappear during this moment, you risk losing their trust and missing the chance to build a lasting relationship.
This is the perfect time to make them feel smart about their decision and excited about coming back. For example, the accessory atelier LaCkore Couture combines discounts and email promotions to create a sense of exclusivity for its customers. Instead of making it like a desperate grab for more sales, it feels like they're letting customers in on something special because they are already part of the club. When the follow-up discount feels aligned with that identity, it becomes a powerful way to encourage customers to return.
However, frequent discounting will hurt profit margin. Even for loyalty programs, if the implementation goes wrong. Furthermore, your customers will quickly catch on if the sales happen too often. What started as a special offer becomes the expected price, and suddenly, nobody wants to pay your regular rates anymore.
For brands that identify themselves as luxury or high-end, frequent discounts will affect your brand perception. People will question whether your brand is as premium as you claim it to be. Think about how it would feel if Rolex started having monthly sales.
Another disadvantage of a discount is that there is no lock-in effect. Despite what type of discounts you are using, the moment the deal ends, customers are completely free to shop wherever they want next time. Nothing is binding them to you for future purchases. A 20% off coupon might get someone to buy from you today, but it doesn't create any reason for them to come back tomorrow when your competitor is offering 25% off.
Set a minimum spend for free shipping
Another effective way you can increase repeat purchases is by offering free shipping thresholds. Many store owners use this trick to remove the mental block customers hit when they're thinking, "Is this worth paying extra shipping for?"
Take Native Deodorant as an example. They offer free shipping on orders of $15 or more, making it easier for customers to shop around without worrying about additional fees.
But this trick can backfire if you don't do it right. If the threshold is too high, customers may hesitate whether to add more items or pay for shipping, which can ultimately lead to customers abandoning their carts.
Even worse, some customers will just save items in their cart and wait to buy more things later to hit that free shipping target. The problem? Life gets busy, people forget, or they change their minds completely, making you lose your potential sales. What started as "I'll come back and add more items" turns into "I'll just buy this somewhere else" or "Maybe I don't need this after all."
Streamline the shopping journey with a subscription model
Take Amazon as an example. To facilitate the buying process of their grocery shoppers, the e-commerce giant introduces the Recurring Reservations, which helps customers slot weekly grocery pickup and delivery orders. Moreover, customers are charged only when they are ready to check out, and they can modify or cancel orders anytime. Once customers become familiar with this level of convenience, competing services that require more effort feel cumbersome by comparison, naturally encouraging long-term loyalty.
Despite convenience, the subscription model also has some limitations that you should be careful with when implementing.
First of all, it can make customers feel pressured into buying your products. This perception arises when customers receive products or services they don't currently need but are still being charged for.
And here's when things can get really messy. People forget they signed up for things. If they see unexpected charges on their credit card for subscriptions they forgot about, they get frustrated fast. The frustration gets even worse when the cancellation process is too complicated: customers have to navigate through multiple pages or fill out lengthy forms just to stop a subscription they don't want anymore.
So, be upfront about what the subscription includes and give people realistic expectations about timing. Before the charge date, send your customers an email reminder about the upcoming payment. At the same time, make it easy for your customers to pause or adjust their frequency without having to call customer service.
Create a network of repeat customers with referral programs
Getting your current customers to return isn't as easy as it sounds, not to mention talking about your business to their social circle.
That's where smart referral programs change everything. When customers refer friends and get rewarded with discounts, they have a reason to shop with you again. Meanwhile, those new customers who came through referrals are more likely to stick around because they discovered you through someone they trust, and the repeat purchase cycle keeps growing.
For example, Rothy’s runs a “Give $20, Get $20” referral program to drive new customers. Shoppers can give their friends and family a $20 discount while earning $20 for themselves. This setup works perfectly because existing customers have a reason to return and use their discount, while new customers feel good about getting a deal from someone they trust. And Rothy's gets new customers who are more likely to become repeat buyers because they came through a personal recommendation.
Still, the limitation of referral programs is that you completely depend on your existing customers. Your customers can be satisfied with your offering, but make no referrals at all. On the other hand, some people will exploit referral programs dishonestly through:
Self-referrals: The act of customers creating multiple fake accounts to refer themselves instead of genuine new customers to claim rewards.
Return abuse: This occurs when a referred person makes a purchase using the referral link from the referrer. After the referrer receives their referral bonus, the referred person returns the purchased items and claims their refunds.
Driving repeat purchases and protecting your profit with store credits
It’s easy to find stores offering loyalty and referral programs these days. But with intense competition, businesses need a smarter strategy to stay ahead. And constantly giving discounts can hurt your profit margins. That’s where store credit comes in. It helps boost conversion rates, encourages repeat purchases, and protects your margins, all at once.
Store credit was inspired by the concept of return and exchange policies, where customers would receive store credit after they made a return to the store, normally with a receipt. Store credit worked like a promise from the store, letting customers use it for their next purchase instead of getting a cash refund. For retailers, it’s a smart way to keep sales within their business while also making their cash flow easier to manage.
However, many innovative merchants have realized that store credits are far more than just a refund tool. Implementing a store credit system can bring significant benefits, including:
Encourage repeat purchases: You can think of store credit as the customer’s own money, but with strings attached. When you offer store credit instead of cash refund, it doesn't feel like "real" money leaving their wallet. This creates a lock-in effect that makes customers come back and browse around.
Protect profit margin: When customers return an item and you offer store credit instead, you are not losing your sales, but rather putting it on hold. Instead of watching customers walk away to shop elsewhere, you've got their money sitting in your system, just waiting for them to come back and use it.
Create instant incentives: Unlike loyalty points that customers have to accumulate before they can use them, store credit gives people instant spending power the moment they receive it.
Understand customers' purchase behavior: Store credit allows you to see your customers’ unfiltered preferences. When people shop with their own money, they are influenced by sales, discounts, and practical needs. But when they are given store credit, those constraints disappear. This opens up valuable insights about what your customers genuinely want versus what they settle for.
Discover more: What is Shopify store credit & how to use it?
Final thoughts
In summary, there are many initiatives you can apply to increase repeat purchases. No matter what methods you choose, the key is understanding that what works brilliantly for one Shopify store might fall completely flat for another.
This is when knowing your metric becomes crucial, and how your business is doing compared to others within the same industry. The most successful merchants don't try to implement everything at once. They pick one or two strategies that align with how their customers behave, test them properly, and then build from there.
Remember, increasing repeat purchases happen when customers have a reason to come back that goes beyond just a mere transaction. Whether that's the convenience of a subscription model, the excitement of earning loyalty points, or the satisfaction of spending store credit, you're building relationships, not just processing numbers.
Start with understanding where you stand today, and your repeat purchase rate will follow.
Your store credit powerhouse for e-commerce success
Koin envisions store credit as more than just a revenue-retention tool; it’s the engine that powers a self-sustaining ecosystem where every customer touchpoint counts.
This ecosystem runs on a simple yet powerful principle: every transaction creates value that fuels both customer acquisition and retention. Imagine a customer who keeps coming back to use their store credits. As they grow more satisfied with your brand, they start referring friends and family, earning even more credits and deepening their loyalty. This cycle continues, creating a strong network of loyal customers who actively promote your business.
FAQs
-About Author
Emma C.
As the Chief Marketing Officer at KOIN app, I’m here to build a robust ecosystem by collaping with Shopify apps. Together, we can create seamless integrations that add more value to our shared customers.
KOIN helps merchants retain customers, increase repeat purchases, and drive loyalty by offering cashback and store credit rewards.
📩 Let’s connect! emma@getkoin.io
