What is GMV (Gross Merchandise Value)?
Gross merchandise value, or GMV, is a metric that shows the total value of all goods and services sold through a business over a specific period of time, usually calculated quarterly or annually. To work out GMV, you simply multiply the selling price of each item by the number of units sold. For example, if an online store sells 1,000 products at £50 each, the GMV for that period would be £50,000. This figure represents the total revenue generated before taking into account any costs, discounts or returns. GMV is commonly used by eCommerce businesses and marketplaces to gauge overall sales volume and growth at a high level.
What’s the difference between GMV and net sales?
While GMV is useful for showing gross revenue, it doesn’t provide a full picture of a business’s financial health. That’s because it doesn’t account for operational costs like marketing spend, discounts, refunds, returns, or payment processing fees.
For this reason, GMV should be analysed alongside other performance metrics such as:
Together, these metrics help businesses better understand profit margins, growth potential and long-term sustainability. While GMV is a strong indicator of scale and demand, relying on it alone can lead to overestimating success. Tracking it alongside cost- and retention-based metrics ensures your business strategy is grounded in real performance.
