What is Gross Merchandise Volume (GMV), and how do you calculate it?
In short – Total value of all goods sold on the marketplace over a specific time period. A key marketplace metrics you should track.
Gross Merchandise Volume (GMV) Formula
GMV = Sum of all transaction values during the period
Gross Merchandise Volume (GMV) represents the total monetary value of all completed transactions on the marketplace within a given time frame. It is a key indicator of the overall health and scale of the marketplace, reflecting the total revenue generated before deductions like fees or commissions.
Monitoring GMV helps marketplaces understand their transaction volume and growth trends. A rising GMV indicates increasing sales and potentially higher profitability, assuming costs are managed effectively.
How can you find your Gross Merchandise Volume (GMV)?
You should generally be able to calculate your Gross Merchandise Volume (GMV) with tools you already posess. If that's not the case, signing up for an analytics tool may make sense.
Among others, twosided is one of the tools you could consider. Out-of-the-box, you'll get over two dozens marketplace KPIs and detailed tracking for your supply, demand and other factors that determine marketplace health.
Explore other metrics
Order Frequency
Average number of orders placed by a buyer within a specific period
Cross-Sell Rate
Percentage of transactions that include additional products or services
Supply-Demand Ratio
Ratio of available listings to active buyers
Listing Quality Score
A metric evaluating the quality of product listings based on predefined criteria
User Net Adds
Net increase in the number of users over a specific period