eBay Changes Definition of Gross Merchandise Volume

eBay Announces Change to Gross Merchandise Volume Definition and Releases Updated Historical Metrics
The company has changed its definition of Gross Merchandise Volume (GMV) to align with customer money flows on its platforms
SAN JOSE, Calif., Dec. 15, 2021 /PRNewswire/ -- eBay Inc. (Nasdaq: EBAY), a global commerce leader that connects millions of buyers and sellers around the world, today announced it has changed its definition of Gross Merchandise Volume (GMV) to align with customer money flows on its platforms.GMV provides a useful measure of the overall transaction volume on eBay's platforms and is correlated to net transaction revenue. The Company has updated its definition of GMV to include all paid transactions on its platforms inclusive of shipping fees and taxes. Previously, eBay reported GMV regardless of whether the buyer and seller actually consummated the transaction. This change has been enabled by the increased visibility derived from the Company's transition to managing payments globally.
The updated GMV definition has an immaterial impact on previously reported GMV. Please refer to the table at the back of this release for a restatement of historical metrics. The restatement of historical metrics, including GMV and active buyers, can also be found on the Investor Relations section of ebayinc.com. GMV under this new definition does not materially change guidance issued by the Company on October 27, 2021.....
...The operating metrics provided in Exhibit 99.1 have been adjusted to reflect certain financial measures that have not been prepared in accordance with generally accepted accounting principles, which we also believe will assist investors in evaluating eBay's financial performance. The operating metrics should be read in conjunction with (i) the audited consolidated financial statements, the accompanying notes and "Management's Discussion and Analysis of Financial Condition and Results of Operations" included in eBay's Annual Reports on Form 10-K for the years ended December 31, 2020, December 31, 2019 and December 31, 2018 and (ii) the unaudited consolidated financial statements, the accompanying notes and "Management's Discussion and Analysis of Financial Condition and Results of Operations" included in eBay's Quarterly Reports on Form 10-Q for the quarterly periods ended September 30, 2021, June 30, 2021, March 31, 2021, September 30, 2020, June 30, 2020, March 31, 2020, September 30, 2019, June 30, 2019, March 31, 2019, September 30, 2018, June 30, 2018 and March 31, 2018.




While the inclusion of shipping and sales tax is likely to raise some eyebrows, at least this definition of GMV specifically states it is the total value of all paid transactions on the site.
The previous definition lacked such specifics instead stating it was the total value of all successfully closed transactions between users on our platforms during the period regardless of whether the buyer and seller actually consummated the transaction.
That left open the possibility that a "closed" transaction could be one in which a buyer committed to purchase, but did not ultimately make a payment to complete or consummate the transaction.