GMV (Gross Merchandise Value)

GMV (Gross Merchandise Value) represents the total dollar value of all merchandise sold through a resale platform over a specific period, before deducting returns, fees, or other costs. In resale marketplaces like Vinted or Depop, GMV captures every transaction between buyers and sellers, making it a key metric for measuring platform scale and growth velocity. While GMV shows marketplace activity, it differs critically from revenue: a platform might process $1 billion in GMV but only collect 10% to 20% as take rate revenue. Investors and operators track GMV to assess market share, seasonal trends, and category performance. However, GMV alone can mislead, since high transaction volume does not guarantee profitability if customer acquisition costs remain elevated or operational expenses outpace revenue growth. Successful resale businesses balance GMV expansion with sustainable unit economics.

Related terms

• Take Rate
• Consignment vs Peer-to-Peer Resale
• Managed Resale
• Authentication in Luxury Resale