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GMV (Gross Merchandise Value)
November 01, 2026 GMV (gross merchandise value) is the total value of orders placed through a marketplace or a single shop over a period of time. GMV measures sales volume; it is not the money the seller actually receives, and it is certainly not profit.
GMV meaning
Each platform defines GMV in its own way, so read the definition before comparing numbers. For example, Sea Limited, Shopee’s parent company, states in its annual report filed with the SEC in April 2026 that GMV refers to the value of orders of products and services on the Shopee marketplace, including shipping and other charges. An “order” is each confirmed order between a buyer and a seller, regardless of whether the transaction is settled or the item is returned (Sea Limited, Form 20-F for fiscal 2025, filed April 17, 2026).
So GMV calculated this way has not yet deducted cancellations, returns, seller-funded vouchers or platform fees.
GMV formula
GMV = Number of orders × Average order value (AOV)
A shop with 1,200 orders in a month at an average of VND 250,000 has a GMV of VND 300 million. There are two ways to grow GMV: more orders (traffic, conversion rate) or a higher value per order (bundles, add-ons, free-shipping thresholds).
From GMV to real money (hypothetical example)
| Line | Amount (VND) | Note |
|---|---|---|
| GMV | 300,000,000 | 1,200 orders × 250,000 |
| Less 10% cancellations and returns | 270,000,000 | Retained revenue |
| Less assumed 20% platform fees | 216,000,000 | 54 million in fees |
| Less cost of goods at 50% of retained revenue | 81,000,000 | 135 million cost of goods |
| Less advertising | 51,000,000 | 30 million in ads |
From VND 300 million in GMV, about VND 51 million is left before packaging, staff and tax, or 17%. The fee and return rates are assumptions for illustration. Failed deliveries on COD orders also sit inside this gap.
GMV in marketplace advertising
Marketplace ads usually report results in GMV. ROAS = GMV attributed to ads / ad spend. You need to know which GMV gets attributed.
With Product GMV Max on TikTok Shop, while a campaign is running, all orders for the selected products are attributed to GMV Max, including organic and affiliate orders. If a shopper buys that product during the campaign without seeing or clicking any ad, the order still counts (TikTok Ads Help, About attribution for GMV Max, updated June 2026). So GMV in a GMV Max report is not all incremental to the ads.
How to calculate break-even ROAS after platform fees is covered in our guide to retail media in Vietnam: Shopee Ads and TikTok GMV Max.
GMV vs. revenue vs. profit
| Metric | What it counts | Used for |
|---|---|---|
| GMV | Value of orders placed, before cancellations, returns and fees | Measuring scale and growth between periods |
| Revenue | Money actually recognized after cancellations, returns and discounts | Financial reporting, tax |
| Profit | Revenue minus cost of goods, platform fees, ads and operations | Deciding whether to keep selling and advertising |
Frequently asked questions
Does GMV include shipping fees?
It depends on the platform. Sea counts shipping and other charges in Shopee’s GMV. Other platforms may calculate it differently, so write the definition down when you set KPIs.
Why does GMV grow while profit falls?
Usually because deep discounts, vouchers, platform fees and ad costs grow faster than GMV, or returns rise. Set KPIs on contribution profit per product instead of GMV alone.
If you need to read marketplace GMV and ROAS in terms of real profit, see Adtek’s Brand Commerce page.
