Marketing & Sales Metrics

GMV (Gross Merchandise Value)

Total value of merchandise sold through a marketplace or platform — gross of returns, refunds, and platform commissions.

GMV is the marketplace-business metric — what Amazon, Flipkart, Meesho report. Different from net revenue (after returns, refunds, commissions). For an SMB selling on a marketplace, your GMV = your sales × your average sale value.

GMV is useful for tracking growth direction, cohort behavior, and category trends. Never the metric to optimize for valuation alone — high GMV with terrible take-rate isn't profitable.

For Indian D2C brands using marketplaces, GMV at platform-level is what Amazon/Flipkart show; net revenue (GMV - returns - commissions - shipping) is what hits your books.

India context

Indian D2C brands track 'marketplace GMV' separately from 'website GMV' to understand where growth is coming from. Most brands are roughly 60% marketplace + 40% website at scale, with marketplaces driving discovery.

Examples

  • A D2C brand: ₹1Cr Amazon sales + ₹40L website sales = ₹1.4Cr total GMV.
  • After 15% returns + 17% Amazon commission, net revenue from Amazon ₹1Cr GMV is ~₹71L.

FAQ

Is GMV the same as revenue?

No. GMV is gross. Revenue is GMV minus returns/refunds/commissions. For an SMB, revenue is what hits your books.

Why does GMV matter for D2C brands?

Tracks total demand, before any deductions. Useful for benchmarking growth, comparing channels, and assessing ad spend efficiency.

Should I report GMV or revenue to investors?

Always revenue. GMV is a vanity metric; revenue is what compounds. Investors will see through GMV-padding immediately.

Related concepts

AOVRTOmarketplace TCStake ratenet revenue

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Related glossary entries

AOV (Average Order Value) — Average rupee value per customer transaction — key revenue lever for ecommerce.RTO (Return to Origin) — Ecommerce metric — % of orders that come back undelivered, typical pain point for COD-heavy Indian D2C.

More in Marketing & Sales Metrics

CAC (Customer Acquisition Cost)LTV (Lifetime Value)ROAS (Return on Ad Spend)MRR (Monthly Recurring Revenue)AOV (Average Order Value)RTO (Return to Origin)ChurnMQL (Marketing Qualified Lead)
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