Gross Merchandise Value (GMV)
Definition
The total value of goods sold through a platform before returns, discounts and fees are taken out. It measures volume, not revenue you keep.
Want a deeper explanation?
GMV is useful for tracking demand and platform activity, but it is not the right base for margins, valuations or bonuses.
When someone quotes a big revenue number, it is worth asking whether it is GMV or net. Watch for: projections and pricing built on GMV, which overstate what actually reaches the bank.
Example
Your store shows $1.2M of GMV, but after $90,000 of returns and $60,000 of discounts, net sales are $1.05M.