GMV

Category: Marketplace

Also searched as: Gross merchandise value

Definition (plain English)

Gross merchandise value is the total transaction value sold through a marketplace or channel before refunds, cancellations, discounts, fees, and adjustments.

Why it matters commercially

GMV measures scale, but it can overstate business health when take rate, refunds, payment failures, and seller payouts are weak.

Example

A marketplace reported strong GMV while net revenue fell because return rates and seller-funded discounts increased.

Common mistake

Using GMV as revenue without separating refunds, cancellations, taxes, shipping, seller payouts, and platform take rate.

Use this in CommerceKit