GMV

Gross merchandise value, or GMV, is the total value of orders placed over a period, usually measured at the price customers paid. It is a top-line figure: it does not subtract refunds, discounts after purchase, payment fees, shipping costs or the cost of the goods.

GMV is the number most platforms and investors use to describe the size of a store or a marketplace. It is also what most store sales estimates, including RivalSonar's, are closest to. Our estimated revenue is estimated orders times an estimated average order value, which approximates GMV rather than net revenue or profit.

Keep these differences in mind:

• Net revenue is GMV minus refunds, returns and discounts.
• Gross profit subtracts the cost of goods and fulfilment.
• Contribution margin also subtracts ad spend and other variable costs.

A store with high estimated GMV and heavy ad spend may make little profit. For a fair comparison between competitors, look at GMV together with signs of efficiency, such as how long their ads run and whether they rely on paid or organic search traffic.