Reorders 101

Understand what reorders are and why they are so critical to the success in growing your ecommerce business

  1. What does reorder mean?
  2. Why reorders are important

Reorder definition

Reordering is the processing of placing an order for the same item that you have previously purchased.

Some customers may not want to be locked into a long-term subscription commitment and may opt to reorder the same product from you since a reorder is more flexible than a standard subscription.

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Why reorders are important

Put simply, generating reorders for your business is one of the healthiest metrics that you can pay attention to as an ecommerce operator. If you are capturing reorders at a high and sustained rate, it is a sign that consumers are valuing your product/service and it puts less stress on the rest of your organization.

Let’s dive into why reorders are important a bit further:

Reorders increase profitability. Instead of constantly spending budget on acquiring new customers which is more expensive than ever, when you generate reorders you are able to leverage your existing customers to generate more revenue. You are not as reliant on spending time (and resources) on acquiring new customers which leads to an increase in profitability on your bottom line. Put simply, less money is being spent on customer acquisition and more money is being generated from reorders.

Reorders are the backbone for sustained company growth. As detailed above, when customers are reordering from you, it is a sign that they like your product. When you are capturing more reorders it puts less stress on your customer acquisition funnel which allows you to conserve valuable “runway” for your business and allows you to strategically invest in areas that will put your company in the best position to succeed in the long term.

Being able to have a reliable source of reorder business drives efficiency and saves your team's time. Customer acquisition takes up time, resources and budget. To do customer acquisition the right way, you have to have compelling creative imagery, consistently monitor the performance of campaigns and of course, it takes money to acquire new customers. When you are generating reorders with regularity, you can cut down your team's time spent on these activities and have them focus on other areas of the business that can help you elevate your business to the next level.

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“The Upscribe Reorder product has helped us generate more revenue, with so little effort! We have a product that people truly like to be reminded they are out of, so it’s a great fit for us! Additionally, working with the Upscribe team has been great!"
Heather Higgns Yunger, Owner, Top Shelf Cookies

Reorders statistics that matter 

Reorder FAQ’s

Do certain products tend to have higher reorder rates than others? 

Generally, products that require replenishment, such as food/beverage and health/beauty products have a higher repeat order rate than others. These are products that consumers regularly and predictably consume meaning that they are likely to have a higher chance of needing to be reordered.

What is a good reorder rate?

This varies by industry/vertical but studies have shown that most ecommerce businesses typically see a repeat purchase rate of between 20% and 40%.

What is the best way to ask a current customer to reorder from my business? 

Leverage tools like Klaviyo to send your current customers personalized messaging reminding them that it may be time for them to place a reorder for a product that they have purchased in the past.

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