Gross Merchandise Value (GMV) has become the north star for e-commerce businesses, investors, and digital-first retailers. But as the digital economy matures and 2025 brings new market forces, understanding what GMV truly represents—and what it doesn’t—has never been more crucial for Australian businesses.
What Is Gross Merchandise Value (GMV)?
GMV measures the total value of goods sold via a marketplace or e-commerce platform within a specific period, before deductions for fees, returns, or discounts. It’s a headline-grabbing figure, often used to demonstrate a platform’s scale. For example, if an online store sells 10,000 units at $50 each in a quarter, its GMV is $500,000.
- Not revenue: GMV doesn’t equal profit or net sales; it’s purely the sales ‘through the till’ value.
- Marketplace focus: Platforms like eBay, Amazon, and Australia’s Catch Group use GMV as a primary metric for growth.
In 2025, GMV is under sharper scrutiny. Investors, regulators, and analysts want to see how it translates into real, sustainable business health.
Why GMV Is Under the Microscope in 2025
Several 2025 trends have put GMV in the spotlight for Australian e-commerce:
- Shift to profitability: Following a decade of ‘growth at all costs,’ Aussie online retailers are now expected to turn GMV into actual earnings. With higher interest rates and subdued consumer confidence, gross sales alone no longer impress investors.
- Regulatory focus: The Australian Competition & Consumer Commission (ACCC) is tightening reporting standards for marketplaces. New 2025 guidelines urge platforms to clearly distinguish GMV from net revenue in financial statements, helping consumers and shareholders avoid confusion.
- Omnichannel complexity: Retailers blending in-store, click-and-collect, and online sales need to report GMV transparently. For instance, JB Hi-Fi’s 2025 half-year results split GMV by channel, showing how digital and physical retail increasingly intertwine.
Real-world example: MyDeal, one of Australia’s fastest-growing online marketplaces, reported a GMV of over $300 million in FY24. However, analysts now focus on how much of that figure flows through to revenue and profits, especially as competition heats up and margins tighten.
How to Use GMV as a Strategic Metric
For founders, finance teams, and even investors, GMV is both a diagnostic and a warning light. Here’s how to make it work for your business:
- Track GMV growth rates: Compare GMV quarter-on-quarter, but always look at how that growth relates to customer acquisition costs and operating expenses.
- Segment GMV by category or region: Breaking down GMV by product type or location (e.g., NSW vs. VIC) reveals where the business is truly thriving.
- Watch for inflation effects: With inflation still influencing Aussie retail prices in 2025, rising GMV could simply reflect higher ticket prices, not higher volumes. Always compare GMV to order numbers and average basket size.
- Focus on conversion: Platforms like Shopify and WooCommerce now offer advanced analytics, helping merchants track how GMV correlates with site traffic, abandoned carts, and marketing spend.
Example: A retailer sees GMV rise 8% in Q1 2025, but unit sales are flat and returns have doubled. The underlying story? More expensive products are selling, but customer satisfaction may be slipping—something only visible when GMV is viewed alongside other data.
The Future of GMV in Australia’s Digital Economy
GMV will remain a key metric for benchmarking e-commerce scale, especially as Australian online retail is forecast to hit $80 billion by 2025. However, the smartest operators are going beyond GMV to track:
- Take rate (the percentage of GMV kept as revenue)
- Repeat purchase rates
- Net GMV (after returns, discounts, and cancellations)
- Customer lifetime value
2025’s business landscape demands transparency and precision. The days of touting sky-high GMV without substance are over. Instead, Australian companies that balance GMV growth with profitability, transparency, and customer value will win investor trust—and market share.
