What is GMV in the GeM portal?

The Governmente-Marketplace (GeM) serves as the Public Procurement Portal for all Central Government and State Government Ministries, Departments, Public Sector Units (PSUs), and affiliated organizations. GeM works to improve the transparency, efficiency, and inclusiveness of government procurement. GeM has the following advantages: It is a centralised and unified public procurement platform for government buyer organisations and suppliers of goods and services, and it is accompanied by:

  • Policy changes for the current public procurement ecosystem
  • Increased Inclusion and Ease of Doing Business (EoDB) with the Government (particularly for smaller organisations such as MSMEs)
  • Process standardization supported by a regulatory framework
  • A fully automated system enabled by technological breakthroughs

The total worth of items sold through a client-to-client (C2C) exchange site over a certain period is referred to as the gross merchandise value (GMV). It is a measure of the business's growth or the use of the site to sell items owned by others.

Because income is a product of gross items sold and fees collected, gross merchandise value (GMV) is frequently used to measure the health of an e-commerce site's business. It is particularly helpful as a time-series comparison measure, such as current quarter value versus prior quarter value.

  • GMV is another term for gross merchandise volume; both terms refer to the total monetary value of total sales.
  • The gross merchandise value is estimated before any fees or charges are deducted.
  • It is a measure of the business's growth or the utilization of the site to resell things owned by others on consignment.
  • GMV analysis from one period to the next enables managers and analysts to gauge a company's financial health.
  • GMV does not accurately represent a company's revenues because a portion of the revenue goes to the original seller.

GeM has the benefit of being smooth, honest, open, efficient, and technologically driven, and this will grow in popularity as even more sellers and buyers join the system. More procurement orders will entice more vendors to join, growing competition and the availability of premium items at lower prices.

GeM's success in becoming a real game-changer in government procurement has encouraged more buyers and sellers to participate in the system. The ability of GeM to unlock value and save money for the country's development, claiming that it has helped in transparent, seamless, easy, efficient, and faster procurements. Because all of the information is in one location, any outlier attempting to trick the system may be quickly identified. The government's decision to charge buyers interest for late payments in GeM is a significant step forward. It has called the government's move to charge buyers interest for late payments in GeM a big step forward.

As of December 18, 2022, GeM, which went live in August 2016, had 55.9 lakh sellers and 65,039 buyers. So far, 1.25 crore orders with a total transaction value of Rs 3.44 lakh crore have been submitted. According to the most recent platform data, micro and small sellers accounted for 8.30 lakh of the total merchants, accounting for 55.31 percent of the order value

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