What is GMV? Gross merchandise value and why it isn't revenue
By SendPay Business · · 2 min read
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 revenue
- GMV: the full value of every sale made through the platform.
- Revenue: the part of that the platform keeps, such as commissions and fees.
- 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.
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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.