Gross Merchandise Value

What is 'Gross Merchandise Value'

Gross merchandise value is the total value of merchandise sold over a given period of time through a customer to customer exchange site. It is a measure of the growth of the business, or use of the site to sell merchandise owned by others.

BREAKING DOWN 'Gross Merchandise Value'

Gross merchandise value is one element of an e-commerce site's performance, since the revenue of the business will be a function of gross merchandise sold and fees charged. It is most useful as a comparative measure over time, such as current quarter value versus previous quarter value.

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RELATED FAQS
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  3. When should a company recognize revenues on its books?

    When a company makes revenues from its operations, it must be recorded in the general ledger and then reported on the income ... Read Answer >>
  4. What are the differences between gross profit and gross margin?

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