💰Value of Marketplace

In marketplace businesses, gross merchandise volume (GMV) and revenue can not be used interchangeably. GMV does not equal revenue.

GMV

Gross merchandise volume is the total sales dollar volume of merchandise transacting through the marketplace in a specific period. It’s the real top line, what the consumer side of the marketplace is spending, i.e. shoppers spent on OFN platform.

It is a useful measure of the size of the marketplace and can be useful as a “current run rate” measure based on annualizing the most recent month or quarter.

Revenue

Revenue is the portion of GMV that the marketplace “takes.” Revenue consists of the various fees that a marketplace gets for providing its services; most typically these are transaction fees based on GMV successfully transacted on the marketplace, but can also include ad revenue, sponsorships, etc. These fees are usually a fraction of GMV.

i.e. Revenue is what each instance or OFN global earns bottom line.

Take rate

Take rate is the percentage that OFN charges it´s enterprises (Food Hubs, producers etc) for using the platform.

✂️Unit Economics

Customer Aquisition Costs (CAC)

Customer Lifetime Value (CLV)

Average Revenue Per User (ARPU)

Average Basket Value

For enterprises only (Food Hubs, producers)