← Business Metric: Operational (all topics)
GMV, take rate & disclosed-revenue quality
What it is
Gross merchandise value is the total value transacted on a platform; take rate is the share the platform keeps as revenue. GMV is not revenue, though it is often presented with equal prominence
The gap between the two is the single most common source of confusion in platform reporting
Impact on industries
- GMV can grow through discounting and low-value orders while revenue and profit do not, so it is easily flattered
- Take rate is the meaningful measure - it shows what the platform can charge for the demand it creates, and whether that pricing power is rising
- A rising take rate can signal pricing power or seller squeeze, and the two have very different durability
- Comparisons across platforms need care, since what counts inside GMV - returns, cancellations, taxes - varies by company