Gross Merchandise Value (GMV) = Sale Price * Units Sold 
  
 Net Sales = Net Revenue = GMV - RRR (Returns/Repair/Replacement) - Taxes at Sale side - Discount  
  
 To elaborate further down the PnL, 
  
 Gross Margin(GM) or Gross Profit = Net Sales or Net Revenue - Cost of Goods Sold (COGS) or Cost of Sales (CoS) 
  
 Contribution Margin 1 (CM1) = GM - Direct Costs (CAC, Commissions, Salaries) 
  
 Contribution Margin 2 (CM2) = Operating Income = CM1-Indirect Costs (Tech, G&A) 
  
 Net Profit pre-taxes = CM2- Financial Costs (like Interests)  
  
 Net Profit = Net Profit pre-taxes  - Taxes

Thanks for the explanation ! Having one more doubt, where do we account for other revenue streams, in the above mentioned equations for example, ad revenue or other revenue streams?

Product Manager

If the company is in the business of selling a X product and Ad Revenue is not part of the same, then Net Sales and Net Revenue are not exactly the same. In that case, Net Sales will include Product X sale revenue and Net Revenue will be Net Sales + Ad Revenue.

Sales Leader

Can someone clearly explain the terms GMV, Revenue, and Net Sales in the context of e-commerce & and online businesses? Lately, there has been a lot of confusion

Can someone clearly explain the terms GMV, Revenue, and Net Sales in the context of e-commerce & and online businesses? Lately, there has been a lot of confusion for me as people are using these terms interchangeably.

GMV vs. Revenue vs. Net sales

GMV vs. Revenue vs. Net sales- Grapevine

Welcome to Business Roles's Private Community

Ideally it should be the average selling price into units

How does your company calculate GMV ?

Business Development Manager

Welcome to Indian Startups's Private Community

Would love to know more about the market here specifically B2B retail media ads, think Amazon ads etc......if anyone here is working on that I have one very specific question.

What's the percentage of GMV that you folks have been able to realise as Ad revenue. 

Meesho folks, please feel free to answer if you have any idea about your companies stats.....

Anyone here working on Advertising?

Founder

How much annual  target do you carry and  it's how many times your annual salary?

For BDM and Sales guys, What's your sales target

Hey everyone. 

Thought I could do an AMA. A bit about me - have 4 years of work experience and graduated from a non engineering college. Was at a startup before (from Series B to Series D) before becoming a VC

Personally look at consumer and B2B investments here 

Happy to answer any questions around life as a junior VC, startup ecosystem, career growth etc.

AMA: I work at a large VC Fund focusing on early stage investments

Investment Associate

Welcome to News Discussion's Private Community

I was leading a team which was involved in launching BNPL for a commodity product( flight tickets/train tickets), and the API we were using to cancel the tickets at the last moment from the 3rd party providers was flaky. 
It was supposed to cancel the tickets and provide refund back to minimize any losses we had. 

It was such a hit feature that led to 250% growth in numbers within a week. I was promoted, the star. 
My manager was promoted too.. 

But I knew inside something wasn't correct, BNPL just meant people not paying then but still had to pay sometime and 250% growth was just not something I could digest. 

I asked the team to switch it off for a couple of days, the whole company esp. Revenue teams were baying for my blood. 

After a month, there was financial reconciliation, and we realised the API was just giving the response of successful cancellation but was never actually cancelling it. 

The company lost almost 15 cr / day. No one wanted to believe this at all from top to bottom

The company never told the investors we fudged up but instead raised more funding by mentioning the 250% growth. 

From then on I realised most investors are just watchmen. 

They want to be on the fast deal more than being on the correct deal. 

Don't believe anything on the internet that you read. 
Almost all GMV numbers are cooked.

Don't believe the numbers just as is

Heard Groyyo is cooking numbers? Is it true? Can any VC guy confirm?

Growth Manager

VC here. Doing this for fun.
Don't take all views seriously.

Comment a startup's name, I'll share if it's promising or whatever I know

Analyst

Welcome to Office Gossip's Private Community

Lately, I’ve been at a bit of a weird place at work. I’ve been working at a startup for the last 1 year. This is my first startup experience. It had been a pretty good experience thus far, as I’ve started doing well, the trust on me has increased, and the kind of asks have become weird.

I’ve increasingly started doing founders office work, which includes helping with the MIS, build projections. As I’ve started working on this, what I’m realizing that a lot of it is hogwash. A lot of the transaction that is reported is not meaningful. Additionally, we are reporting unachievable projections, even though it is evident it won’t work out.

It’s kinda on the fence, and I don’t feel like doing it. But then again, this might just be how most startups work. 

Have you guys faced this? If yes, what would you do in my position?

GMV vs. Revenue vs. Net sales

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