What is GMV? Gross merchandise value and why it isn't revenue

By SendPay Business · · 2 min read

What is GMV? Gross merchandise value and why it isn't revenue

GMV, or gross merchandise value, is the total value of everything sold through a marketplace or platform over a period. It measures how much money flows through the platform, not how much the platform keeps.

GMV vs revenueWhy people track itWhat GMV hides

GMV vs revenue

  1. GMV: the full value of every sale made through the platform.
  2. Revenue: the part of that the platform keeps, such as commissions and fees.
  3. Take rate: revenue divided by GMV, the share the platform keeps.

Why people track it

GMV shows how much activity a platform has and how fast it is growing, which is why marketplaces, booking sites and payment firms often quote it. A platform processing £1 million a month with a 10% take rate earns £100,000; the same GMV at 2% earns £20,000.

What GMV hides

GMV usually counts sales before refunds, cancellations and discounts, so it can look bigger than the real business. When comparing platforms, look at revenue and take rate as well, not GMV alone.

Where SendPay fits

SendPay platforms let you run your own marketplace, store, bookings or membership business under your own brand. With a Services Marketplace, you take a fee on every order and sellers are paid out automatically.

Build it

Create your own financial platform.

Pick a template, name it, brand it, preview every page before you pay. Your brand, your users, your fees.

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Questions people ask

What is my platform's take rate?

Work out your take rate from GMV and fees earned.

Take rate calculator →
What is a take rate?

The share of each sale a platform keeps.

What is a take rate? →
How do I set my fees?

Pick fees that match the value you add.

Set your platform fees →
What does a platform cost?

Platform types start at £2,500.

See platform types and prices →

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This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.