Monday, June 12, 2017

What is Gross merchandise Value (GMV)


  • Used in e- commerce industry.

  • Definition: Total value merchandise sold over a given period of time through customer to customer site

  • GMV = sale price charged per item X number of items sold
Positive side: 

Illustration: A customer buy a product from market place like snap deal at Rs 100 and then GMV is Rs 100

Illustration : If a customer purchases the rs 100 product from jabong with 30 % discount  then GMV is Rs 100 - Rs 30 = Rs 70

Illustration : If a customer buys 4 shirts from Myntra each costing Rs 500. Then GMV is Rs 500*4
= rs 2000.

Illustration: If 1000 customers buys Average rs 500 worth of products from shopclues in 2016 then total GMV is 1000*500= Rs 500000

Negative side:

Illustration: If a customer purchses the product of Rs 500 from Amazon.in and return it on a given day, GMV is still Rs 500. 

  • Indian online retail industry GMV is 13, 500 crore in october 2016 (https://yourstory.com/2016/11/flipkart-amazon-snapdeal-gmv/)
  • Flipkart 200 crore GMV, 
  • Categories: Mobile 55% GMVs white goods 10%  and others 35%




Tejas networks- Marketing summary

Tejas netowrks

1. Products:communication products CPO,PTM, DWDM and Ethernet.

2. clients: Tata Power, Rail Tel, BSNL, MTNL

3. Market share 53%

4. Segment : global ooptical aggregation segment, transport network packet optical and multiplexer.

5. Original equipment manufacturer for many companies.

6. client approach; Post tender follow ups.

7. Mode of sales : payment realization after product working in Government organizations.In case of private customers payments are on part basis. The financials are shown on the sales.

8. Type of sales: Team selling with help of other departments like PM/Manufacturing/Finance and engineering.

9. sales cycle : 24 months.

10. sales cost: travelling abroad and domestic

11. buying committee: multiple approvals are required by clients.

12. Pricing strategies: competition based.

13. customer service: technical support, Installation, commissioning, and training. The service is provided by company employees as well as third party service providers. Installation service is of one year duration.

14. Market s covered: Asia, Africa, and central America.