GMV (Gross Merchandise Value)
Definition
GMV is the total dollar value of goods or services transacted through a marketplace or e-commerce platform over a period — the sum of all customer purchases facilitated, before deducting returns, discounts (treatment varies), or the platform's cut. Payments businesses use the analogous term TPV (total payment volume).
GMV is not revenue. A marketplace like eBay or Etsy recognizes as revenue only its commission and fees — its take rate times GMV — while a first-party retailer like a traditional e-commerce store recognizes the full sale as revenue. This agent-vs-principal distinction (formalized in revenue-recognition rules) means GMV comparisons across business models can badly mislead.
GMV measures platform scale and network momentum; revenue and contribution profit measure what the platform actually keeps.
Why interviewers ask
A standard internet-sector trap question: 'Company A has $10bn of GMV and Company B has $10bn of revenue — are they the same size?' Interviewers test whether you know GMV ≠ revenue and can connect GMV to revenue via the take rate. Essential for TMT coverage and any marketplace pitch.
Related terms
Interviews don't test definitions — they test recall under pressure.
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