What is GMV (Gross Merchandise Value)?
GMV is the total value of goods sold through a platform before fees, returns and discounts are taken off.
Updated
Meaning
English
GMV is the total value of goods sold through a platform before fees, returns and discounts are taken off.
Roman Urdu
GMV platform par bikne wale saman ki kul qeemat hai, fees aur returns katne se pehle.
Also called gross merchandise value, gross merchandise volume, GMS.
Example
A seller's store on a marketplace shows a GMV of 2 million rupees for the month. After 12% returns and cancellations, marketplace commission and shipping fees, the money actually received is much less.
How it works
GMV is a headline number used by marketplaces and online stores to show size. It counts orders at their selling price, including orders that are later cancelled or returned. That makes it useful for comparing activity over time but misleading as a measure of income.
For a seller, the numbers that matter come after GMV: net sales after returns and cancellations, then what the platform pays out after commission, payment and shipping fees, and finally profit after the cost of goods. When comparing channels, compare profit per order, not GMV.
In Nafaa
Nafaa reports online orders next to counter sales, and its profit report works from completed bills after discounts and returns, so channel comparisons use net figures rather than GMV.
Related terms
- Online Marketplace
An online marketplace is a website or app where many sellers list products and customers buy from them, with the platform handling the storefront and often payment and delivery.
- Net Profit
Net profit is what is left from sales after the cost of goods and all business expenses have been taken off.
- RTO (Return to Origin)
RTO is a parcel that the courier could not deliver, or the customer refused, and that is sent back to the seller.