Glossary term

Gross merchandise value (GMV)

Definition

The total value of goods sold through a store over a period before deducting fees, discounts, or returns. It measures overall sales volume rather than net profit.

Gross merchandise value (GMV) is the total value of goods sold through a store over a set period, measured before you subtract fees, discounts, refunds, or returns. It captures the raw volume of sales flowing through your store, not the profit you keep. Think of it as the top-line number that answers “how much did we sell?” rather than “how much did we make?”

How it is calculated

The basic formula is the number of items sold multiplied by their sale price, summed across every order in the period. If you sold 200 units at an average of 150 dollars each, your GMV for that period is 30,000 dollars. Because GMV sits before deductions, the same period will always show a lower figure once you account for platform fees, discounts, and returned goods (often reported as net revenue).

Why it matters

GMV is a common yardstick for growth and marketplace scale. It is easy to compare across months and useful for spotting momentum, seasonality, or the impact of a new sales channel. Its limitation is that a high GMV can hide thin margins, heavy discounting, or a high return rate, so it should be read alongside net revenue and profit, never on its own.

GMV in B2B quoting on Shopify

For merchants who sell through quotes, a large share of revenue may never pass through a standard product page. When a quote is accepted and paid through Shopify checkout, that order counts toward GMV like any other. Tracking quote-driven orders separately helps you see how much of your total volume comes from negotiated deals versus self-serve carts, which matters when average order values on B2B quotes tend to run higher. See the B2B quoting glossary for related terms, or the pricing page for plan details.

Frequently asked

Is GMV the same as revenue?

No. GMV is the total sale value before deductions. Revenue, especially net revenue, subtracts discounts, refunds, returns, and fees, so it is usually a smaller number.

Do accepted quotes count toward GMV?

Yes. When a buyer accepts a quote and pays through Shopify checkout, the resulting order adds to your GMV just like a standard storefront sale.

Why track GMV if it does not show profit?

GMV is a quick measure of sales volume and growth trends. Pair it with net revenue and margin to understand whether that volume is actually profitable.

Turn quote requests into paid orders

ShopQuotes is a free-to-start Shopify app for branded, checkout-ready quotes.