Gross merchandise volume (alternatively gross merchandise value/GMV or gross merchandise sales/GMS) is a term used in
online retailing
Online shopping is a form of electronic commerce which allows consumers to directly buy goods or services from a seller over the Internet using a web browser or a mobile app. Consumers find a product of interest by visiting the website of the ...
to indicate a total sales monetary-value (e.g. in U.S. dollars or Euros) for merchandise sold through a particular marketplace over a certain time frame. GMV includes any fees or other deductions which a seller might calculate separately. Site revenue comes from fees and is different from the monetary-value of items sold.
GMV for e-commerce retail companies means the average sale price per item charged to the customer multiplied by the number of items sold. For example, if a company sells 10 books at $100, the GMV is $1,000. This is also considered as "gross revenue". In this case, the business model is based on a retail model, where the company basically purchases the items, maintains inventory (if need be) and finally, sells or delivers the items to customers. It does not tell the net sales as GMV does not include costs involved and returns of products.
[{{Cite news, url=http://www.scmp.com/tech/e-commerce/article/2119589/explainer-what-gmv-gross-merchandise-volume, title=Explainer: What is the big deal about gross merchandise volume?, work=South China Morning Post, access-date=2018-06-04, language=en]
See also
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Contribution margin
Contribution margin (CM), or dollar contribution per unit, is the selling price per unit minus the variable cost per unit. "Contribution" represents the portion of sales revenue that is not consumed by variable costs and so contributes to the cover ...
References
Online retailers
Revenue
E-commerce