Understand What is GMV and How to Grow It With Better Content

Find out what GMV is, how to calculate it, and how you can handle it the right way. Learn how to grow GMV and use Pippit to support content creation for your marketing campaigns.

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What is GMV
Pippit
Pippit
Aug 7, 2025
13 min(s)

Do you want to know what GMV is and why it matters for your business? Well, many online sellers use it to follow their sales trends and compare performance on different channels. In this article, we'll explore how you can calculate it, discuss strategies to handle it correctly, and provide some tips to improve it.

Table of content
  1. What is GMV
  2. How is GMV calculated
  3. How to work out gross merchandise value
  4. Quick tips to increase GMV growth
  5. From listings to conversions: Let Pippit power your GMV growth
  6. Pros and cons of GMV valuation
  7. Conclusion
  8. FAQs

What is GMV

GMV stands for Gross Merchandise Value (or Gross Merchandise Volume). It measures the total dollar value of goods sold through a platform over a given period, before subtracting discounts, returns, shipping, or platform fees. It shows sales volume rather than profit, and is often used by marketplaces and e-commerce businesses to track scale.

A good example is Shopify, which reported a GMV of about $300 billion in 2024. This shows the large-scale transactions handled on the platform, even though Shopify earns only a fraction of that amount through service fees and subscriptions. It highlights why GMV metrics are a key indicator of platform activity, and tells you how much value brands are generating in total, regardless of net revenue or profits.

Now that you've learned what GMV is, let's find out how to calculate it:

How is GMV calculated

GMV is calculated by multiplying the number of units sold by the price per unit, before any deductions like returns, discounts, or fees.

GMV Formula:

GMV = Total Units Sold × Selling Price per Unit

Example:

A seller on an online store sells 500 t-shirts, each priced at $20.

GMV = 500 × $20 = $10,000

Even if there are returns or discounts later, GMV stays at $10,000 because it highlights the total value of goods sold at listed prices, not the actual revenue collected.

How to calculate GMV

How to work out gross merchandise value

GMV in e-commerce gives you a rough idea of how much you're selling, but it doesn't say much on its own. To really understand how well your online store is doing, you need to compare GMV with a few other numbers that tell the full story.

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  1. Compare with revenue

Start by checking how your GMV compares to actual revenue. The difference shows what's lost through discounts, returns, or platform fees. If revenue is too far behind GMV, it's a sign to review your pricing, refund policy, or sales channels.

    2
  1. Check AOV

AOV tells you how much the average customer spends per order. If GMV is going up but AOV is flat, it might be because you're getting more orders but not necessarily bigger ones. When you keep an eye on both, you can spot ways to improve your pricing or product bundles.

    3
  1. Track CAC

CAC measures how much it costs to acquire a single customer. You can compare that with the GMV that those customers generate. If CAC is rising but GMV doesn't grow in the same way, it's time to adjust your marketing strategy.

    4
  1. Watch churn rate

Churn rate is the percentage of customers who stop buying from you over a certain time. A growing GMV with a high churn rate can be misleading. It shows you're selling more, but buyers don't return. That can hurt your business growth and signal a gap in retention.

    5
  1. Add CSAT or NPS

Customer feedback gives more context. CSAT (Customer Satisfaction) and NPS (Net Promoter Score) add customer sentiment to the mix. When CSAT or NPS improves alongside GMV, it shows that people are spending more because they're actually happy. But if GMV climbs while satisfaction drops, it might not last long.

Quick tips to increase GMV growth

    1
  1. Improve product listings

The first thing you need to do is to see how your products appear on the page. You need to use clear photos, short titles, and specific details that answer common questions. When everything's right there (price, size, delivery timing), it removes doubt. That gives people more confidence to move forward with a purchase instead of hesitating or leaving.

    2
  1. Offer limited-time deals

After your listings are in shape, add urgency to the experience. Limited-time deals create a reason to buy now rather than later. It could be a flash sale or a weekend promotional video with a visible countdown. People act quicker when they know the offer won't last long. It also adds variety to the store, which engages returning customers with your product.

    3
  1. Upsell and cross-sell

Now that you're getting interest, add more value to each transaction. When a potential customer adds an item or two to their cart, suggest a better version or something related. If they buy a coffee machine, show them compatible filters or mugs. These small changes increase total cart value because you're offering something that fits naturally with their choice.

    4
  1. Run targeted ads

To bring in more of the right traffic, focus on ads that speak directly to certain groups. You can use browsing history or past purchases to show people what they're already drawn to. Instead of casting a wide net, you're reaching people who have already shown interest, which is why each click is more likely to convert.

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  1. Add bundle offers

Then, try to offer sets, kits, or themed combos at a better total price. Shoppers often prefer bundles when they see that they're getting more for less. It's also a smart way to clear extra stock or bring attention to items that haven't moved much lately.

Once you learn what GMV is and start handling it, you'll need a smarter way to manage your content. That's where Pippit steps in and gives you a helping hand!

From listings to conversions: Let Pippit power your GMV growth

If you're posting new arrivals, teasing a sale, or sharing behind-the-scenes clips, Pippit shapes content that gets attention and drives action. It is a go-to creative tool for brands, sellers, and marketers who want to turn casual scrollers into real buyers and improve their GMV growth.

You can design short videos, posters, and social posts that match your product drops or promos. With its preset templates, Shopify store integration, batch image editor, smart video crop, and auto-posting features, your content stays sharp and timely.

Pippit AI home screen

3 easy steps to use Pippit for creating engaging marketing videos

If you're aiming to push up your GMV, video content is a strong starting point. Short product clips can pull attention fast and move people toward checkout. With Pippit, creating these videos doesn't take hours or extra tools. Here's how to get started:

    STEP 1
  1. Open the video generator

After you sign up for Pippit, click "Video Generator" to open the video-generating interface. Enter your text prompt and click "Link," "Media," or "Document" to add your link or upload your media files. Then, hit "Settings" to set the duration & language, and choose whether to create a video with or without an avatar, and click "Generate."

Provide input for video in Pippit
    STEP 2
  1. Generate video

Click the pencil icon on your uploaded media to open the "Edit Video Info" panel. From there, you can adjust the theme, upload your logo, add your brand name, set the intro, and select a video category. Then, add some video highlights, campaign info, and target audience preferences under the "More Info" section to fill in highlights, campaign info, and audience focus. In the "Video Settings" area, pick your preferred voiceover, avatar, and screen aspect ratio, and hit "Generate" to create your video.

Generate marketing videos
    STEP 3
  1. Export and share

Preview your video to check how it runs. Use the "Quick Edit" option to adjust the captions or script if needed. Once everything looks good, click "Export" to save the final version with your preferred format, resolution, and frame rate. After exporting, head to the "Taskbar" and select "Publish" beside the video to share it directly on TikTok, Instagram, or Facebook.

Exporting video from Pippit

Quick steps to create clear product images using Pippit

Want to post better product shots that catch attention on social media or your store? Try these simple steps using Pippit.

    STEP 1
  1. Upload the image

On the home page, click "AI Product Photo." Upload your product photo using the + button or drag and drop it. Pippit will automatically clear the background for a clean starting point.

Uploading image in Pippit
    STEP 2
  1. Create product images

Choose a solid color background or switch to "AI Background" for scene templates. You can add short texts or go to the "AI Design" section. Choose the "Product Poster" type, enter your prompt, turn on "Layout to Poster," and generate 4 layout ideas. Adjust resolution and aspect ratio to suit Instagram, TikTok, or other platforms.

Creating product image in Pippit
    STEP 3
  1. Export to your device

Finally, click "Download" in the top right corner to save the image in your selected quality and size. You can also click the three dots and choose "Edit More" to open it in the advanced editing space and fine-tune it.

Exporting image to device

Key features of Pippit for creating content that grows GMV

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  1. Powerful video solution

Pippit's AI video creator lets you turn product links, photos, or short ideas into videos that fit different formats and styles. You can customize the language, text, voiceover, and AI avatar to match what your audience expects. These short videos capture attention and speed up product discovery, which can lead to quicker buying decisions and more sales volume. This is especially useful for marketplaces or online stores where visuals often drive clicks.

Pippit AI video generator
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  1. Smart video & image editing space

Pippit's editing suite lets you refine your content without needing multiple tools. For video, you can trim scenes, add avatars to your video, convert pictures to talking clips, fix pacing, remove noise, and clean up visuals. For image content, you get access to background removal, batch editing, AI shadow tools, and upscale to sharpen your product shots. These upgrades fine-tune your visuals, so when shoppers land on your pages, they trust what they see. More trust leads to higher conversions, which is the key to driving up GMV.

Pippit video editor
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  1. Pre-cleared assets for content creation

Rather than starting from scratch, you get a set of templates already cleared for commercial use. They're sorted by industry, duration, aspect ratio, & theme and regularly updated based on current trends. These assets let you publish faster without worrying about licensing issues. The quicker you get content out, the sooner you can drive traffic to product listings and start pushing up sales volume.

Templates in Pippit
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  1. Auto-publisher and analytics

You can schedule content to go live on platforms like Instagram, TikTok, or Facebook directly from Pippit's social media management tools. Once published, the built-in analytics track views, clicks, shares, and engagement. Watching what works and what doesn't gives you a real-time understanding of which formats or products lead to higher GMV. You can then use that data to repeat or tweak content strategies.

Auto publisher in Pippit
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  1. Sales poster generator

Pippit also includes a product poster tool that turns your product info into sales visuals within seconds. You can enter a product name, drop in a few details, and get an AI-generated design fit for promos, stories, or ads. You can also select layout options or upload your own image for better control. These quick-turn posters are especially useful during flash sales or seasonal campaigns when timing and clarity matter most for GMV spikes.

Pippit sales poster tool

Pros and cons of GMV valuation

Pros
  • Easy to understand and track: GMV finance value provides a clear snapshot of total sales volume over a given period. It's a simple metric for monitoring business activity.
  • Useful for benchmarking trends: Tracking GMV over time lets you compare growth throughout quarters or years and benchmark your performance against other platforms.
  • Assess scale and market reach: In startups and e‑commerce, rising GMV signals an increase in user activity or transaction volume. Investors often view high GMV as a sign of traction or market opportunity.
Cons
  • Does not show profitability: GMV ignores key deductions such as returns, discounts, fees, and marketing or fulfillment costs. It offers no insight into actual earnings or margins.
  • Can mislead valuations: Relying solely on GMV can inflate perceived value. High GMV may come from high-priced items or promotional volume, rather than sustainable or profitable sales.

Conclusion

In this article, we've learned what GMV is and how you can calculate it. We've also discussed how to use it the right way, provided quick tips for its growth, and broken down its pros and cons. If you're looking to track your GMV smarter and create content that drives real sales, try Pippit. It's made for creators and e-commerce sellers who want quick tools for content, product visuals, and branded assets. Try it now and get scroll-stopping marketing content in seconds.

FAQs

    1
  1. What is GMV in business?

What GMV is can vary slightly across industries, but in the e-commerce business, it's often seen as a top-level metric for growth tracking. To support that growth, Pippit gives you tools to turn product listings into engaging content. From branded posters and sales videos to caption-ready product reels, you can organize, edit, and publish on TikTok, Instagram, and Facebook right from your dashboard.

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  1. What is GMV in sales?

GMV in sales refers to the total value of all goods sold during a specific time frame, measured before deducting costs like shipping, discounts, or returns. Online stores and marketplaces often use it to track growth or compare product performance. Pippit gives sellers a way to show off products through ready-to-use content formats. You can use its AI video generator, AI product photo tool, preset templates, editing spaces, and more to create attention-worthy content for your campaigns and online store.

    3
  1. What is GMV in TikTok?

GMV in TikTok Shop is the total amount of sales generated through the platform before deducting returns, discounts, or fees. It allows creators and sellers to measure how well their products are doing in terms of total sales volume. This metric is key for tracking growth, digital marketing campaign performance, and product demand over time. To stay ahead on platforms like TikTok Shop, Pippit gives creators tools to produce ready-to-sell videos, generate digital avatars, and create brand-first thumbnails. You can preview, edit, and publish directly to TikTok, so your entire content-to-sales workflow is faster and smoother.