What is Gross Merchandise Value (GMV)?

Gross Merchandise Value (GMV) is the total dollar value of everything sold through a marketplace or platform in a given period, before any fees or costs are taken out. If sellers move $10 million of products through your marketplace in a month, your GMV is $10 million.

GMV is the headline measure of size for marketplaces and ecommerce platforms. But it's important to remember it's not your revenue — the platform usually keeps only a small commission on each transaction.

GMV vs. revenue

The gap between GMV and revenue trips up many founders. GMV measures the activity flowing through your platform; your actual revenue is the slice you keep, called the take rate.

• GMV: total value of all transactions on the platform.
• Take rate: the percentage you keep, often 5–20%.
• Revenue = GMV × take rate.
• A huge GMV with a tiny take rate can still mean modest real revenue.

Why GMV matters for validation

For a marketplace, growing GMV shows that both buyers and sellers are actually transacting — the hardest thing to prove in a two-sided business. During validation, even a small but real flow of GMV is strong evidence that you've solved the chicken-and-egg problem. Just don't confuse GMV with profitability; always pair it with your take rate and costs.