Gross Merchandise Value (GMV)

Gross merchandise value (GMV) is a business calculation that measures the total value of products sold within a particular time period.

What Is Gross Merchandise Value (GMV)?

Gross merchandise value (GMV) is a key performance indicator (KPI) for ecommerce brands that measures the total value of merchandise sold within a specific period. To calculate this metric, brands would multiply the total number of products sold by the sales price of those products. With this information, brands gain a holistic view of their sales before fees and expenses. This is particularly helpful for retailers or brands that source products from other vendors or manufacturers. Businesses with considerable fees and expenses related to manufacturing their own products might find this metric less valuable. When combined with other KPIs, gross merchandise value (GMV) helps businesses track their growth over time, which can be helpful insight to guide sales and marketing decisions.

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