E-commerce GMV Metrics: Strategies for Managing First-Time Buyers
When analyzing revenue, e-commerce brands commonly use GMV (Gross Merchandise Value) to gauge performance. By examining the components of this formula, brands can identify areas for further optimization. GMV essentially represents the total order value, including returns and cancellations, simplifying the process of identifying specific metrics and growth opportunities. This article focuses on how e-commerce brands can enhance GMV from first-time buyers. In the next article, we will explore strategies for managing and maximizing GMV from existing customers. After a period of operation, and initially optimizing the key metrics mentioned above, e-commerce brands often encounter the following issues: Despite efforts to further improve these metrics, the effectiveness of these optimizations tends to diminish, making it difficult to achieve significant additional gains Although GMV shows gradual growth, this increase does not necessarily translate into a corresponding rise in final revenue
