GMV
GMV stands for Gross Merchandise Value: the total dollar value of all orders processed through your store before any deductions. If you sold $100,000 of products last year, your GMV is $100,000 — regardless of how much you kept after fees, refunds, and returns.
GMV is not revenue. It’s the gross flow of money through your store. Your actual revenue (what hits your bank account) is GMV minus:
- Payment processing fees (typically 2.5–3.5% of GMV)
- Platform transaction fees (0–2% depending on platform and gateway)
- Refunds and returns (industry average 15–30% in fashion; 1–5% in consumables)
- Chargebacks
Why GMV matters for platform decisions
Platform pricing — especially BigCommerce’s tier structure — is tied to GMV. BigCommerce Standard’s $39/mo plan has a $50K/yr GMV cap. Cross it, and the plan auto-upgrades to Plus ($105/mo).
When comparing ecommerce platforms, using GMV as your reference number (rather than revenue) ensures you’re comparing apples to apples, because all platform fees and processing costs are calculated as a percentage of GMV.
GMV tiers and BigCommerce plan auto-upgrades
| BigCommerce Plan | Monthly Price | Annual GMV Cap |
|---|---|---|
| Standard | $39/mo | $50K |
| Plus | $105/mo | $180K |
| Pro | $399/mo | $400K |
| Enterprise | Custom | Unlimited |
If your store processes $55K in GMV during a strong Q4 month, BigCommerce will move you to Plus ($105/mo) for the following 12 months. Budget for the tier above your expected GMV, not the tier you’re currently on.
The $100K GMV benchmark
We use “$100K GMV” as the standard comparison point throughout this site because it’s a realistic first-year target for a committed side-hustle founder or early DTC brand, and because the platform cost differences become visible at this scale.
Below $30K GMV: platform cost differences are negligible ($500/yr vs $700/yr). The right choice is whichever platform is easiest to start on.
Above $100K GMV: transaction fees, tier caps, and app stack costs make the platform decision worth optimising. The Decision Wizard outputs platform costs at your specific GMV.
See also: Effective rate · Transaction fee · Shopify review · BigCommerce review