Gross merchandise volume, or GMV, is a term used in online retailing used to describe the total sales dollar value for merchandise sold over a given period through a specific customer-to-customer exchange site. For eCommerce sellers, this is the Gross Transaction Value and is one of the measures on an eCommerce site’s performance. It is the total amount of money paid by customers.
What GMV tells us
It’s important to note that the gross merchandise volume is calculated before deducting fees, taxes, or other associated expenses. The GMV provides information that an e-commerce business can actively use to measure its growth in a given period. A GMV allows sellers to understand the gross value of all completed sales.
The Downside
Some may argue that a GMV does not offer significant valuable insight into the productivity of a company. The gross merchandise volume does not take into account returns, discounts, and other price reductions. It also does not include significant fees like inventory storage and management. For e-commerce marketplaces like eBay and Amazon, the site revenue is not calculated based solely on the dollar value of products sold, instead takes into consideration a variety of factors.
How to gauge eCommerce financial health
Estimating the sales history for a given product can be challenging because it takes time and resources – especially if the product is offered on multiple marketplaces. Algopix Sales Estimator aggregates relevant data from eBay’s, Amazon’s, and Walmart’s marketplaces and analyzes it to produce valuable information, allowing online sellers to make faster and more educated business decisions.