AKA:
Gross Merchandise Volume, Gross Sales, Gross Revenue, Top Line Revenue
What does it mean:
Used in marketplaces it’s the total value of all goods sold during a given period. This means the total value of the consumer’s spending but not necessarily the revenue the marketplace generated from these sales. True revenue is usually a small percentage of total GMV.
The formula:
Total Sales Volume = Gross Merchandise Value (GMV)
The formula (annualized GMV):
Last month’s GMV * 12 = Annualized GMV
Last quarter’s GMV * 4 = Annualized GMV
Use it in a sentence:
To colleagues:
“We need to increase our GMV this month. Let’s run a campaign to help vendors list more products.”
To investors:
“We’re seeking a valuation based on a 2x multiple of our annualized GMV.”
At a party:
“That guy/girl is really cute but I could never be into someone who mixes up revenue and GMV in their investor pitch.”
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