Gross Merchandise Value (GMV) is the total value of goods sold through a platform or channel over a specific period, before deductions like returns, discounts, or fees.
Why GMV Matters
- Measures overall sales volume and marketplace health
- Helps evaluate product demand and category performance
- Useful for benchmarking growth across channels
- Indicates the scale and momentum of the business
- Often used by marketplaces and multi‑vendor platforms
How GMV Is Calculated
GMV=Total Units Sold×Selling Price
Or simply: sum of all sales before deductions.
Common Use Cases
- Marketplace performance reporting
- Category and vendor analysis
- Growth benchmarking
- Investor and leadership reporting
- Understanding demand patterns
Related Terms
- Revenue
- ASP
- AOV
- Net sales
- Sell‑through rate
What this metric really tells us
GMV is often treated as a headline number, but its real power emerges when you read it as a story about momentum, demand, and the health of the entire commercial system. It captures the interplay between supply, marketing, pricing, and customer appetite, a living snapshot of how well the ecosystem is working. When leaders look beyond the surface, GMV becomes a tool for cross‑functional intelligence: a way to understand where value is being created, where friction is building, and where the future is pulling the business next. Sustainable growth comes from interpreting GMV with nuance, not chasing it blindly.
