What is GMV?
Gross merchandise value (GMV) is the total price of goods that a company has sold over a certain period according to the C2C (client-to-client) model. GMV is a measure of the growth of a business or the use of a marketplace to sell products offered by other users.
eCommerce businesses often use GMVs, as the revenue of such companies will depend on the gross value of goods sold and the commissions charged. This indicator will be especially effective when comparing different periods, for example, the gross merchandise value in the first quarter compared to GMV in the second quarter. This allows analysts and management to draw conclusions about the business's financial position.
GMV can also be interpreted as the gross volume of goods. In any case, both definitions indicate the total value of all sales in monetary terms.
GMV is calculated before deducting any costs and commissions. A business can use this metric to understand growth rates. Typically, a retail business calculates the gross value of all sales made, although returns may need to be deducted for a more accurate calculation.
