GMV (Gross Merchandise Value) is the total monetary value of all merchandise sold through a platform or seller account over a given time period, measured at the buyer's purchase price before any deductions.
Formula: GMV = Number of Units Sold × Average Selling Price
What GMV Includes
GMV counts the full transaction value at the point of sale. It includes:
- The product price paid by the buyer
- Shipping charged to the buyer (if any)
- Taxes collected (in some definitions)
What GMV Does Not Include
GMV is a gross figure — it does not subtract:
- Marketplace commissions or referral fees
- Fulfillment costs
- Refunds and returns
- Seller discounts or promotions
Because of this, GMV overstates actual seller revenue. Net revenue (GMV minus fees and returns) is what sellers actually receive.
Why GMV Matters
For marketplaces: Amazon, Walmart, Etsy, and others report GMV as a top-line performance metric — it represents the scale of commerce flowing through the platform.
For sellers: GMV is a useful growth metric when tracked over time. Comparing GMV month-over-month or year-over-year shows whether your total sales volume is growing, even if margins fluctuate.
For investors and benchmarking: GMV is a standard metric for valuing marketplace-dependent businesses and comparing scale across platforms.
GMV in Context
A seller doing $500,000 GMV per year on Amazon might net $150,000–$250,000 after fees, COGS, and advertising depending on their category and margin structure. Always model GMV alongside net margin to understand the actual health of the business.