What is Gross Merchandise Value?
Definition: Gross merchandise value (GMV) is the total value of merchandise sold over a given period of time through a customer-to-customer (C2C) exchange site. It is a measure of the growth of the business or use of the site to sell merchandise owned by others.
In Plain English: Gross merchandise value (GMV) refers to the volume of goods sold via customer-to-customer or e-commerce platforms.
Example: You own a customer-to-customer business that is similar to Ebay but for used shoes. In your first quarter, 100 pairs of shoes were sold at $50 each. Your site’s GMV is 100x$50=$5,000
Why Should You Care?
Gross merchandise value (GMV) is often used to determine the health of an e-commerce site's business because its revenue will be a function of gross merchandise sold and fees charged. It is most useful as a comparative measure over time, such as current quarter value versus previous quarter value.