Glossary

Gross merchandise value (GMV)

The total value of goods sold through a platform over a period, before fees, discounts, and returns are deducted.

Also called: GMV

Gross merchandise value is the total dollar value of goods or services sold through a platform over a given period, counted at the price the customer paid, before subtracting platform fees, discounts, refunds, or returns. It is used heavily by marketplaces and multi-seller platforms, where it captures total transaction volume flowing through the platform, not the platform's own revenue.

GMV differs from revenue in a way that matters for interpretation: a marketplace that takes a small commission on each sale might report GMV many times larger than its actual recognized revenue, since GMV includes the seller's share too. It also differs from average order value, which is a per-transaction average rather than a total; GMV can rise purely from more orders even if AOV is flat or falling.

GMV matters as a headline scale metric for marketplaces and a rough proxy for market share or growth, but because it is a gross, pre-deduction figure, it can overstate the platform's actual financial performance if read without the accompanying take-rate or net revenue. A common pitfall is comparing GMV across companies with different business models — a platform with a low commission rate can show large GMV with modest actual revenue — so GMV should be interpreted alongside net revenue rather than as a stand-in for it.

Last reviewed September 22, 2026

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Related terms

Average order value (AOV) The average amount spent each time a customer places an order, revenue divided by number of orders. Repeat purchase rate The share of customers who buy more than once within a given period, a core signal of loyalty. Market basket analysis Finding which products are frequently bought together, to inform bundling, placement, and recommendations. Revenue recognition The accounting rules for when revenue counts as earned and can be recorded, which is often not when cash is received.