Gross Merchandise Value (GMV) represents the total sales revenue facilitated through the TikTok platform. This figure encompasses the total value of goods or services sold during a specific period, before accounting for deductions such as discounts, returns, or allowances. For example, if sellers on TikTok Shop collectively sold products totaling $1 million in a month, the platform’s GMV for that month would be $1 million.
GMV serves as a critical indicator of a platform’s overall performance and growth trajectory. It provides insights into user engagement, sales effectiveness, and the platform’s ability to attract and retain both sellers and buyers. A consistent increase in GMV typically signals healthy platform growth, attracts investors, and reinforces confidence among existing users. The measurement of this metric allows for strategic adjustments aimed at further optimizing the shopping experience and driving increased sales volume.