When a commerce platform says it "did" a certain amount of business, the figure could mean very different things. Before comparing two platforms, two categories or two months, be clear which layer of value you are looking at.
Gross Merchandise Value (GMV)
GMV is the value of goods transacted on the platform. Definitions vary: some count goods at MRP (list price), others at selling price; some include cancelled or returned orders, others do not. That is why GMV figures from different companies are rarely directly comparable without adjusting for definition.
Gross Final Value or net selling value
Many datasets also carry a value after discounts, the amount the customer actually paid for the goods. In some industry datasets this is labelled GFV. The gap between GMV at MRP and this value is the effective markdown, a direct measure of how much a category relies on price to move volume.
Net revenue
A marketplace does not book GMV as revenue. It books what it keeps: commissions, fees, advertising, delivery charges and, for inventory-led models, the margin on goods it owns. Net revenue as a share of GMV is the take rate.
How to use the three together
- Growth: compare GMV over time only on a consistent definition.
- Pricing health: track markdown by category; rising markdown with flat volume is a warning sign.
- Monetisation: track take rate; it reveals how much of the value a platform actually captures.
- Mix: a shift toward high-ticket categories lifts GMV per order without any change in customer behaviour.
Questions to ask of any reported number
Is it at MRP or selling price? Gross or net of cancellations and returns? Inclusive of taxes? Which period, and which cities? Answering these four questions removes most of the confusion in market comparisons.