Confused about how different platforms report revenue? Here is a ready reckoner.
If you run an eCommerce business, chances are you use various sales channels in addition to your own D2C website or brand.com store. When it comes to assessing your business performance, Gross Merchandise Value (GMV) is probably the most commonly used metric. GMV is typically defined as the total value of goods sold over a period of time. Revenue, on the other hand, refers to the net sales after deductions.
One of the key challenges with having multiple channels is that each platform - whether it’s marketplaces like Lazada, Shopee, TikTok, Amazon, Tokopedia or D2C platforms like Shopify or wooCommerce - has its own method of calculating and reporting data. While some platforms may report net sales, factoring in cancelled or returned orders, others may not. The handling of discounts, taxes, and promotions can also vary significantly across various marketplaces. Each platform also follows its own reporting timeline, which could be based on order date, payment date, or other metrics such as payment status. This lack of standardization within the industry means that understanding and comparing performance across platforms can be a challenging task.
If you're feeling overwhelmed by the various ways different platforms report revenue, we've got you covered. We’ve put together a ready reckoner that will help you navigate this. The table below outlines the revenue formula for each platform and how they report it.
Whether you're a beginner or a seasoned pro, this ready reckoner can help you understand the nuances so you can accurately interpret and compare performance across different platforms.
If you’re looking to consolidate all your eCommerce data into a unified platform that can give you in-depth analytics and data backed insights and recommendations, look no further. For a single source of truth, try Graas.