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GMV

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The total value of goods sold through a website, calculated using the final price paid by customers, including discounts and before deducting any refunds, costs or fees.

GMV Definition

GMV means Gross Merchandise Value. It is the total amount of money customers spend on a website's products, including discounts. It's calculated before subtracting any costs and doesn't account for refunds. GMV is always higher than the actual revenue a website makes.

How is GMV calculated?

Let's say you have a website that sells widgets, You sell 250 units for a selling price of $200 each in the previous month. So, your GMV for the month is ($200 * 250) = $50000, which is also known as the total sales or gross revenue of the merchandise.

This calculation does not subtract refunds or any fees that the website pays. Typical examples of fees could be the payment gateway fees, marketing costs or refunds.

Gross merchandise value (GMV) = Selling Price of a unit * Number of Units Sold - GMV formula
Author
Published
October 13, 2024
Updated
November 8, 2024

Frequently Asked Questions

In simple words, Nmv is the amount you get after deducting all costs and expenses from the Gmv (NMV = GMV - All Costs/ Expenses).

Basically, GMV means gross merchandise value or gross merchandise volume, ordinarily referring to the total value of merchandise sold over a given period of time.

No, GMV is not the same as revenue. Revenue measures the income that a business generates from the sale of its own products or services, while GMV measures the total value of all goods sold through a platform or marketplace.

For example, if you sell an item through your website for $100 but you pay 10% in commissions, your revenue is $90 and your GMV is $100.