one-line definition
GMV (Gross Merchandise Value) is the total dollar value of goods or services sold through a marketplace or platform before deducting fees, returns, or costs.
formula: GMV = Total value of all transactions processed through the platform
tl;dr
GMV is not revenue — it is transaction volume. Your actual revenue is GMV multiplied by your take rate. Marketplace builders track GMV for growth signals but should focus on take rate and unit economics for sustainability.
Simple definition
GMV (Gross Merchandise Value) is the total dollar amount of all transactions that flow through your marketplace or platform. It counts everything buyers pay sellers — before your platform takes its cut, before refunds, before any costs. For solo founders running marketplaces or platforms, GMV measures the size of the economy you have created, while take rate determines how much of that economy you capture as revenue.
How to calculate it
GMV = Total value of all transactions processed through the platform
If your freelancer marketplace processes 150 transactions in a month with an average order value of $320:
GMV = 150 × $320 = $48,000
With a 12% take rate, your actual revenue is $48,000 × 0.12 = $5,760. Track GMV monthly to measure marketplace growth, but always pair it with take rate and net revenue to understand business health.
Example
You build a niche marketplace connecting local photographers with event hosts. In month one, 20 bookings flow through the platform at an average of $400 each — $8,000 GMV. You take 15%, earning $1,200. By month six, GMV grows to $35,000 (88 bookings). Impressive growth, but your refund rate climbed to 8% because some photographers no-showed. Net GMV after refunds is $32,200, and your real revenue is $4,830. The lesson: raw GMV looks great in pitch decks, but net GMV after refunds and chargebacks is what pays your bills. Build quality controls (reviews, deposits, verification) to keep net GMV close to gross GMV.
Related reading
Related terms
- Take Rate
- Revenue Churn
- AOV
FAQ
Is GMV the same as revenue?+
No. GMV is the total transaction volume flowing through your platform. Your revenue is GMV multiplied by your take rate. A marketplace processing $100K GMV with a 10% take rate earns $10K in revenue.
When does GMV matter for solo founders?+
GMV matters if you are building a marketplace, payment platform, or any product that facilitates transactions between buyers and sellers. If you sell your own SaaS subscriptions directly, MRR is the better metric.