In December, eBay changed its definition of Gross Merchandise Value (GMV) to mean the total value of all paid transactions between users on its online marketplace platforms are inclusive of shipping fees and taxes.
On Friday, the company sent out an email to its eBay Partner Network (EPN) users explaining that the GMV definition change will not impact EPN users as this is not a change to the definition of Gross Merchandise Bought (GMB).
eBay said that “GMV is the most-used metric within eBay and is the most accurate measure of overall transaction volume on eBay platforms.”
The company further explained eBay’s business has evolved significantly over the past 15 years and its key operating metrics needed to accurately reflect this.
While eBay did not mention all the divisions it sold off over the last few years, it seems that is what the company is referring to. Today, eBay is primarily generating revenue from its core marketplaces that also includes managing payments for transactions, a function previously handled through PayPal.
The new GMV definition will align with eBay’s customer money flow and its monetization model the company said.
No Change to eBay Partner Network Payouts
However, as much as GMV and GMB appear to be the same metric, there are key differences eBay wanted to point out to avoid confusion. EPN’s definition of GMB will continue to exclude shipping and taxes as had been done in the past.
That is why the current EPN rate card will remain the same.
“Your current pricing won’t change as a result of this and we’ll continue to pay partners the same way as before. For further information, please refer to our Network Agreement,” the company said in its email.
The eBay Partner Network is eBay’s affiliate program enabling digital marketers to promote eBay products on their websites, social media channels, and other digital platforms.
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