GMV (Gross Merchandise Value)
The total value of goods sold through a marketplace or seller account over a period, at the buyer's price and before fees, refunds or returns. GMV is units sold times average selling price. It counts the full transaction value, sometimes including shipping and taxes, and deducts nothing: marketplace commissions, fulfillment costs, refunds, returns and discounts all come out later.
In practice
GMV is units sold times average selling price. It counts the full transaction value, sometimes including shipping and taxes, and deducts nothing: marketplace commissions, fulfillment costs, refunds, returns and discounts all come out later. That makes it a measure of scale rather than of what a seller actually earns.
A seller with $500,000 GMV a year may keep only a fraction of that once referral fees, fulfillment, advertising and product costs are paid.
Why it matters
Marketplaces report GMV as their headline growth figure, and it's a useful volume trend for sellers - but on its own it overstates how healthy a business is.
Worth knowing
- Formula: GMV = units sold × average selling price.
- Net revenue (GMV minus fees and returns) is what the seller actually receives.
- Always read GMV next to net margin; a rising GMV with falling margin can mean growth is being bought at a loss.
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