fbpx

What is GMV (gross merchandise volume)?

GMV (gross merchandise volume; also referred to as gross merchandise value) is a metric that refers to the total sales value that is generated over a certain period of time via an ecommerce platform or marketplace. Typically, GMV is measured on a quarterly or annual basis. A simple formula to calculate gross merchandise volume or gross revenue for an online store is to multiply the sales price charged to customers by the amount of merchandise sold. 

GMV vs net sales

Because GMV does not account for accrued expenses like marketing and advertising costs, this metric alone will not give a complete picture of the health of an ecommerce store, its net sales, or its net income. For more accurate insights into a business’s performance, GMV should always be considered alongside other key metrics, such as customer acquisition cost, customer lifetime value, net merchandise value, and churn rate.