Gross merchandise value is the total value of merchandise sold through a marketplace or ecommerce platform in a specific time frame, before deductions like returns, discounts, or fees.
GMV is a common metric for marketplaces and large platforms because it shows total transaction volume, regardless of how much of that value becomes the platform’s revenue. It’s an important measure of scale and market activity.
GMV = Total value of all items sold over a given period. This is usually measured before subtracting costs, returns, or cancellations. For ecommerce stores, GMV can be a useful indicator of total sales momentum, especially if you operate across multiple sales channels.
A multi-seller marketplace reports a GMV of $50 million for the year. While the platform only keeps 10% as revenue through commissions, GMV growth signals increasing seller success and platform adoption.
GMV is not revenue, it’s the value of all goods sold, not the amount the business actually earns after fees. It’s also not profit, which accounts for operating costs.
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