Gross Merchandise Value GMV
The total dollar value of everything ordered through the platform, before the platform's cut and before anything is returned.
The fork, why two teams get different numbers
GMV is a headline vanity number with no accounting standard behind it, so the
inclusions are a choice. Marketplaces and DTC brands split on whether GMV
includes SHIPPING and TAX, whether it counts CANCELLED and unpaid orders, and
whether it is netted for RETURNS. A marketplace reports third-party GMV (goods
sold by other sellers) that never touches its own revenue except as a take rate,
while a first-party retailer's "GMV" is essentially its own gross sales. The same
label spans a number that is 1x revenue and a number that is 20x revenue.
The trap
GMV counting cancelled, failed-payment, and returned orders overstates the business a customer never paid for, a flash-sale week with heavy cancellations can post record GMV and ordinary cash.
- The full trap, worked on a real export
- Every formula variant, spelled out
- The reconciliation anchor, what to tie it to and when to refuse
Reference: Marketplace/e-commerce reporting convention · ASC 606 principal-vs-agent for the revenue tie (reference)