Software and internet platforms
Gross merchandise value (GMV)
The total value of goods or services sold through a platform.
Facts checked against sources onWhat does Gross merchandise value (GMV) mean?
GMV is the total value of all orders placed through a marketplace or platform in a period, before the platform's fees and often before returns, cancellations and discounts. It is not the platform's revenue: revenue is roughly GMV times the take rate. Example: a marketplace with 5 million orders at an average order value of 40 has GMV of 200 million; with a 15 percent take rate its revenue is 30 million. Companies define GMV differently (some include delivery fees or taxes), so compare carefully.
Where does it come up in case interview prep?
- How e-commerce and marketplaces make moneyLesson in E-commerce, marketplaces, and quick commerce
- Order economics: last mile, dark stores, and returnsLesson in E-commerce, marketplaces, and quick commerce
- E-commerce players, trends, and how to crack the casesLesson in E-commerce, marketplaces, and quick commerce
- How internet platforms, marketplaces, and digital ads workLesson in Internet platforms, marketplaces, and digital advertising
- Platform unit economics: contribution per order and ad revenueLesson in Internet platforms, marketplaces, and digital advertising
- Internet platforms: players, super-apps, trends, regulation, and how to crack the casesLesson in Internet platforms, marketplaces, and digital advertising
- Beauty players, trends 2024 to 2026, and how to crack the casesLesson in Beauty and personal care: cosmetics, skincare, haircare and fragrance
- How staffing, recruitment, outsourcing and work platforms workLesson in Staffing and outsourcing: temp work, recruitment, call centres and work platforms
Related terms
- Take rateThe share of each transaction's value that a platform keeps as revenue.
- AOV (average order value)Revenue divided by the number of orders.
- First-party (1P) versus marketplace (3P)Selling your own stock versus letting other sellers sell on your platform for a fee.
- Return rateThe share of items sold that customers send back.
- Annual recurring revenue (ARR)The yearly value of all active subscription contracts at a point in time.
- Net revenue retention (NRR)How much recurring revenue a group of existing customers brings in a year later.
- CAC payback periodHow many months of gross profit it takes to earn back the cost of winning a customer.
- Rule of 40A software company's growth rate plus its profit margin should add up to at least 40 percent.
Learn it in context
See Gross merchandise value (GMV) at work in a lesson from E-commerce, marketplaces, and quick commerce, with checks as you go.
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