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Revenue

GMV Calculator

Gross Merchandise Value totals the dollar value of everything sold over a period, before returns, fees, or any deductions, a top-line scale metric rather than a profitability one.

$

GMV

$400,000

What This Means

GMV is total transaction value, not revenue, a marketplace typically only keeps a commission or fee from this total.

The Formula

GMV = Total Units Sold × Selling Price (summed across all orders)

Why It Matters

GMV is often the headline number marketplaces and large ecommerce operations report externally, since it reflects transaction volume and scale. It's easy to mistake for revenue, though, since GMV includes the full sale price even when a platform only keeps a commission or fee from each transaction.

Example

A marketplace facilitates 5,000 orders averaging $80 each in a month. GMV is 5,000 times $80, which equals $400,000, even if the platform itself only earns a 10% commission on that total.

Frequently Asked Questions

  • No. GMV is the total transaction value flowing through a platform or store, while revenue (for a marketplace) is usually just the commission or fee earned on that volume, a much smaller number.

  • GMV signals scale and market share, which investors and partners often care about even before a marketplace is turning a meaningful profit on that volume.

Related Calculators

Average Order Value (AOV) CalculatorRevenue Per Visitor (RPV) Calculator

From the Glossary

Gross Merchandise Value (GMV)Average Order Value (AOV)
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