Marketing Acronyms

Gross Merchandise Value (GMV)

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.” 

Want to learn WTF more marketing acronyms mean?

Get the book!