# What is Gross Merchandise Value? Definition & Technical Mechanics

> **Source:** [SPIDITS AI Startup & Venture Intelligence Glossary](https://spidits.com/startup-glossary)  
> **Category:** Metrics  
> **Canonical Citation:** [https://spidits.com/startup-glossary/gmv](https://spidits.com/startup-glossary/gmv)

## Definition
Gross Merchandise Value (GMV) is the total dollar value of sales transactions processed through a marketplace platform over a given time period.

## Architectural Mechanics & Deep Dive
Gross Merchandise Value (GMV) is the total dollar value of sales transactions processed through a marketplace platform over a given time period, indicating total volume of commerce.

## Industry Applications & Real-World Use Cases
Marketplace platform transaction volume measuring

## Frequently Asked Questions

### Is GMV the same as revenue?
No. GMV is the total volume of goods sold. Marketplace revenue is only the take-rate or commission fee the platform charges.

### Why is GMV a key metric for marketplaces?
It demonstrates the volume of activity and utility the marketplace is facilitating between buyers and sellers.

## Related Terminology
- [arr](https://spidits.com/startup-glossary/arr)
- [unit-economics](https://spidits.com/startup-glossary/unit-economics)
- [tam](https://spidits.com/startup-glossary/tam)

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*From the SPIDITS AI Knowledge Base (300+ terms indexed). Explore full technical definitions: [https://spidits.com/startup-glossary](https://spidits.com/startup-glossary)*