If you are doing a marketplace business, please be aware that the distinction between revenue and GMV is widely used as a shibboleth.
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Historically, lots of folks think that they can quote the total sales number (GMV) as revenue to appear bigger than they are.
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A bright ten year old can see through this plot. It is so obvious that VCs/etc aggressively filter on anyone who conflates the two.
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@patio11 Amazon 10-K: "When we are primarily obligated in a transaction, […] revenue is recorded at the gross sale price". 3/Thanks. Twitter will use this to make your timeline better. UndoUndo
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what about a brick and mortar department store that "hosts" third party sellers with their cash register recognizing sale?
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I see this in Singapore malls all the time - dozens of third party vendors/products, but "Tangs" cash register receipt.
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@patio11 It's actually more complicated - if the marketplace is primarily obligated to the customer, revenues are recorded at gross valuesThanks. Twitter will use this to make your timeline better. UndoUndo
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@patio11 It's a question of who has the principal relationship with the customer vs. who is the agent. Think Uber vs. AirBnB. 2/Thanks. Twitter will use this to make your timeline better. UndoUndo
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