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GMV (Gross Merchandise Value)

GMV represents the total value of all items sold at their full listed price, including VAT and other indirect taxes, and before deducting platform fees, commissions, seller-funded discounts, returns, or cancellations. GMV measures commercial transaction volume, not the revenue or cash that the seller actually receives.

Why It Matters

  • •GMV is a top-line indicator of demand and scale across platforms.
  • •It is useful for tracking marketplace activity, but cannot be used to assess profitability or capital efficiency.
  • •Because GMV includes VAT and excludes fees, it is structurally higher than revenue and disconnected from cash flow.

Connection to Capital

GMV does not reflect the seller's true economic performance or cash returns and should never be used in ROI, margin, CCC, or working capital analysis. It is purely a commercial volume metric.

Related Terms

Revenue Cash Net Proceeds Settlement Cycle (Marketplace Payout Cycle)

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