If you work in the e-commerce industry, you’ve heard of GMV (Gross Merchandise Volume). But what exactly is GMV, and why is it so important?
This blog post will take a closer look at what GMV is, how it’s calculated, and why it matters to e-commerce businesses.
GMV, or Gross Merchandise Volume, is a metric commonly used in the e-commerce industry to measure the total value of all goods and services sold through a platform over a given period. It includes physical and digital products and any fees or commissions that the platform may charge.
GMV is an important metric for e-commerce companies because it reflects the overall size and scale of the business. A high GMV suggests that the company successfully attracts and retains customers and can sell various products and services.
Depending on the company’s specific business model, there are a few different ways to calculate GMV. For example, if the company is an online marketplace that connects buyers and sellers, GMV would be calculated by adding up the total value of all transactions on the platform.
It would include any fees or commissions charged by the company.
If the company is an online retailer that sells its products, GMV would be calculated by adding up the total value of all sales made through the platform, including any shipping and handling charges.
GMV is often used with other metrics, such as revenue and profit, to give a complete picture of the company’s financial performance. For example, a company may have a high GMV but a low-profit margin, indicating that it is selling many products but not making much money on each sale.
Overall, GMV is a valuable metric for tracking the growth and success of an e-commerce business and is often closely watched by investors and analysts.
Up until working with Casey, we had only had poor to mediocre experiences outsourcing work to agencies. Casey & the team at CJ&CO are the exception to the rule.
Communication was beyond great, his understanding of our vision was phenomenal, and instead of needing babysitting like the other agencies we worked with, he was not only completely dependable but also gave us sound suggestions on how to get better results, at the risk of us not needing him for the initial job we requested (absolute gem).
This has truly been the first time we worked with someone outside of our business that quickly grasped our vision, and that I could completely forget about and would still deliver above expectations.
I honestly can’t wait to work in many more projects together!
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