Gross Merchandise Value (GMV)
Gross merchandise value is the total monetary value of all goods sold through a store or marketplace over a period, measured at sale price before deducting platform fees, payment costs, discounts applied after the sale, refunds, returns, or the cost of the goods themselves.
GMV is the headline number marketplaces and storefronts reach for because it is large and easy to grow: it counts the full ticket price of everything that changed hands. A store with 1,000 orders at an average of 60 reports 60,000 in GMV, regardless of what it actually keeps. That scale makes it a fair gauge of top-line demand and momentum over time.
The caveat is that GMV flatters. It sits above revenue, which is what the business recognises after refunds, cancellations, and the platform fee or commission are taken out, and it sits far above profit, which also subtracts the cost of goods, shipping, and marketing. A returns-heavy category or a discount-driven month can post strong GMV while net revenue barely moves.
Use GMV to track growth in transaction volume, then read it next to revenue, refund rate, and margin before drawing conclusions. On its own it tells you how much was sold, not how much the business earned, so treating GMV as a proxy for financial health is the most common way it is misread.