The GMV calculation for Sellers has been updated with a simpler logic. This article will help you stay updated on the information and understand the composition of the Seller's GMV, as well as how it impacts the data of Creators and Sellers!
How has the GMV calculation changed compared to before?
Currently, the GMV logic is calculated based on 3 types of content: LIVE, VIDEO, and PRODUCT TAG. GMV will be credited to the type of content the customer clicked on last before checking out a product.
The GMV calculation logic has been specifically changed as follows:
- Old calculation: 100% GMV = Live + Video + Showcase + Others
- New calculation: 100% GMV = Live + Video + Product Tag
GMV listed under "Showcase" + "Others" has been replaced with "Product Tag" to make it clearer and easier to understand.
What do you need to pay attention to?
In the Partner Center, under the Analytics section, in the GMV analysis part, you will see the entirely new "GMV from Live" and "GMV from Video" These metrics indicate the GMV generated when customers place orders from the Seller's LIVE content or Video content. You may also notice that GMV metrics for Video and LIVE may be lower than before. This is because a portion of GMV that was previously attributed to LIVE and Video is now attributed to Product Tag under the new logic.
Specifically, when a customer adds a product to the cart from LIVE or Video but then changes the product category before checkout, the GMV from this transaction will be attributed to Product Tag.
However, while Product Tag is a key contributor to GMV, Sellers should still focus on LIVE and Video content. Visual social content is the core attraction of TikTok Shop!
Practical example of the new GMV calculation
Example 1:
The seller is selling the iPhone 15 on their storefront => A customer searches for iPhone 15 on TikTok Shop and proceeds to purchase the iPhone 15 => The GMV from the sale of the iPhone 15 will be attributed to "Product Tag".
In this case, the Product Tag is the last type of content the customer interacted with before checkout.
Example 2:
A customer watches the Seller's video on the For You page that promotes a black iPhone 15 => The customer likes the item and clicks "Add to cart" to place the black iPhone 15 in their cart => However, before completing the transaction while the item is still in the cart, the customer changes their mind and decides to purchase the blue model => The customer buys the blue iPhone 15 => The GMV of the blue iPhone 15 from this transaction will be attributed to the Product Tag.
In this case, although the customer initially engaged with the product through the Video, when they switched to purchasing a different color variant, the Product Tag became the final content medium interacted with before checkout.
Example 3:
The customer sees a live video promoting the iPhone 15 => The customer likes the item and clicks "Add to cart" to purchase the iPhone 15, then proceeds to checkout for the iPhone => The GMV from this purchase transaction will be attributed to LIVE.
In this case, LIVE is the last type of content interacted with before checkout.
What remains unchanged?
This new calculation logic is used everywhere except for metrics related to Affiliate Marketing transactions (such as GMV Affiliate and Commission). These metrics follow the old GMV model so that the commission paid to Creators through Affiliate Marketing will not change.
Key points to remember
- The GMV logic has been streamlined to calculate based on the last type of content the customer interacted with before checkout.
- The 3 types of content include: Product Tag, LIVE, and VIDEO.
- Each type of content is equally important, and you should develop strategies that consider all three types of content.
Join UpBase TSP to get the latest news and answers to questions about TikTok Shop as quickly as possible!
Proud to be an All-in-One partner of TikTok Shop with experience in supporting the operations of over 200 brands, UpBase TSP will help sellers stay up to date with the latest news about TikTok Shop, connect with industry-specific AMs, and provide a host of other attractive benefits such as:
- Receive quarterly vouchers up to $3,000 USD
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- Support in contacting and connecting with 2,000+ Creators/KOCs within the UpBase MCN network
- Support in registering for Whitelist and Submit Mall for TikTok Shop stores
- Receive free strategic consulting and operational support
