GMV—gross merchandise value—is the total transaction value processed on a marketplace or commerce platform over a period, reported before the platform’s fees and refunds.

How it works

If a ride-hail platform completes trips worth $5 million in a month, monthly GMV is $5 million regardless of the company’s net revenue share. E-commerce marketplaces sum seller order totals; payment facilitators may report payment volume similarly. GMV growth shows demand and liquidity on the supply and demand sides. Net revenue equals GMV multiplied by take rate (plus ancillary fees) minus chargebacks and incentives. Some companies adjust GMV for cancellations; definitions vary—always ask what is included. GMV is not GAAP revenue and can inflate perceived scale.

Why it matters

• Founders: Pair GMV slides with take rate, contribution margin, and repeat purchase metrics. Show why volume translates to durable profit.
• Investors: GMV helps compare marketplace traction early when net revenue is small. Mature diligence focuses on cohort retention, fraud rates, and subsidy-adjusted economics—not GMV alone.

Common mistake

Pitching GMV as if it were company revenue. A billion-dollar GMV headline with a 5% take rate is a $50 million revenue business before costs—context matters.

Related ideas

Take rate, gross merchandise value, net revenue, and contribution margin.