Product metrics and goals
Gross merchandise value (GMV)
Also called GMV, Gross transaction value
The total value of everything sold through a marketplace, before the marketplace takes its cut.
How it's worked out
The sum of every transaction's value in the period
GMV shows the size of the activity a marketplace enables. The marketplace's own revenue is GMV times its take rate.
Reported alone it can flatter: a growing GMV with a shrinking take rate may mean the business earns less.
In practice
12,000 transactions averaging $50 make $600,000 of GMV.
Common mistake
Calling GMV revenue. Most of it belongs to the sellers.