The key difference between GMV (Gross Merchandise Value) and gross revenue is:GMV represents the total sales value of goods sold, while gross revenue refers to the actual amount of money earned by the business after accounting for factors like discounts, returns, and other deductions.123Specifically:
- GMV is the total value of all transactions, including the full sales price of goods sold, before any deductions.145 It reflects the overall sales volume and scale of the business.
- Gross revenue is the total amount of money the business actually earns from those sales, after subtracting discounts, refunds, and other costs.123 It represents the business's true top-line income.
So while GMV provides insight into the total sales activity, gross revenue is a more accurate measure of the business's financial performance and profitability.123 Businesses typically track both metrics to get a comprehensive view of their operations.3In summary, GMV is a measure of total sales volume, while gross revenue is the actual money earned from those sales after accounting for various deductions. Understanding the distinction between these two important metrics is crucial for evaluating the financial health and growth potential of an e-commerce business.
source : https://www.perplexity.ai/search/difference-between-gmv-V3jcC.0YRa6ecG4iLrc7fQ
My notes
- GMV is generally higher than gross revenue
- GMV includes the selling prices - full sales price. So if a product product worth 100 rupees is sold at 1 rupee with 99 rupees discount, GMV is 100(SP) and gross revenue is 1 rupee