Gross merchandise volume

Gross Merchandise Volume (alternatively Gross Merchandise Value or GMV) is a term used in online retailing to indicate a total sales dollar value for merchandise sold through a particular marketplace over a certain time frame. Site revenue comes from fees and is different from the dollar value of items sold.[1]

GMV for e-commerce retail companies means sale price charged to the customer multiplied by the number of items sold. For example, if a company sells 10 books at $100, the GMV is $1,000. This is also considered as "gross revenue". In this case, the business model is based on a retail model, where the company basically purchases the items, maintains inventory (if need be) and finally, sells or delivers the items to customers. It does not tell the net sales as GMV does not include discounts, costs involved and returns of products.[2]

References

  1. ↑ Staff, Investopedia (2008-11-01). "Gross Merchandise Value". Investopedia. Retrieved 2018-06-04.
  2. ↑ "Explainer: What is the big deal about gross merchandise volume?". South China Morning Post. Retrieved 2018-06-04.
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