In e-commerce, two terms often come up when discussing performance: Gross Merchandise Volume (GMV) and Net Merchandise Value (NMV). While they may sound similar, the difference between them is crucial for anyone trying to understand the true value of online sales.

NMV vs. GMV: What’s the Real Difference?

GMV, or Gross Merchandise Volume, refers to the total value of goods sold over a given period—before accounting for any deductions. While Net Merchandise Value (NMV), on the other hand, the total value of merchandise sold or bought over a particular time period including all successfully completed transactions, deducting cancellations, returns, or refunds. In other words, NMV gives you a more realistic view of what revenue truly passed through the system.

Here’s a simplified formula for calculating NMV:

NMV = GMV – Returns – Cancellations – Failed Transactions

For example, if a brand sells $50,000 worth of products in a month but $10,000 worth is returned or canceled, its GMV remains $50,000—but its net merchandise value is only $40,000. That $40,000 is the number that better reflects operational performance and buyer satisfaction.

In short, GMV shows gross momentum, while NMV reveals sustainable value. Both are important—but when it comes to understanding real business health, NMV often tells the more accurate story.

Repeat Buyers = Stronger NMV? Usually.

Repeat customers play a critical role in strengthening a business’s Net Merchandise Value (NMV). While attracting new shoppers is important, it is returning buyers who often provide more predictable and higher-quality revenue. One key reason for this is behavioral familiarity—repeat buyers are already acquainted with product fit, brand expectations, and shipping timelines, which naturally reduces the likelihood of returns and cancellations.

Loyalty programs help reinforce this behavior. By offering incentives such as discounts, points, or early access to promotions, businesses can build long-term customer relationships that translate into more consistent purchasing habits. Over time, this can result in fewer order disruptions, such as cancellations before shipment or refunds after delivery, both of which are typically excluded from NMV calculations.

Moreover, loyal customers tend to be more deliberate with their purchases. Having experienced the brand before, they are less prone to impulse buying or dissatisfaction, two common causes of high return rates. As a result, a loyal customer base not only contributes to higher overall order volume but also to a cleaner, more reliable NMV figure.

Influencers vs. Affiliates: Who Drives Better NMV?

In the context of e-commerce performance, the distinction between influencers and affiliates becomes particularly important when measuring Net Merchandise Value (NMV). While both channels are widely used to acquire customers and drive traffic, they often produce very different outcomes when evaluated through the lens of net value rather than gross sales.

Influencer marketing typically focuses on awareness, inspiration, and brand affinity. Influencers create engaging content that introduces products to a wider audience, often resulting in short-term sales spikes. However, these sales may be accompanied by higher return rates, lower repeat purchase behavior, or order cancellations—factors that directly reduce NMV. In other words, while influencers may drive strong Gross Merchandise Value (GMV), the resulting Net Merchandise Value can vary depending on product-market fit and post-purchase satisfaction.

Affiliates, in contrast, are generally performance-driven. Their compensation models are tied to completed purchases, encouraging them to target more purchase-ready audiences. Because affiliate conversions tend to have lower refund rates and stronger buyer intent, this channel often produces higher NMV per transaction. Affiliates also tend to promote specific offers or evergreen products that are less prone to impulse returns or dissatisfaction.

Ultimately, while both channels have value in a broader marketing strategy, businesses aiming to maximize Net Merchandise Value should evaluate not just the volume of sales, but the quality and net contribution of each transaction.