The E-Commerce Revenue model is a business model that allows companies to sell products online and charges a commission fee for each transaction based on the Total GMV Revenue.

GMV (Gross Merchandise Value): GMV or gross merchandise value is the total value of goods sold via customer-to-customer.

Modeling E-Commerce Revenue Based on Total GMV Revenue and a Percent Take Rate.

Step 1: Go to the fX Variables to add your custom variables.

Such as; average order size, the average amount per order, etc.

Step 2: Calculate your total GMV Revenue.

In this example we used the following variables to find the total GMV Revenue:

  • Average Purchase Amount

  • Average Price Per Order

Next, we calculated the Total GMV Revenue:

Step 3: Head back to the Revenue section to add your Total GMV Revenue Forecast.

Now, let's head back to the revenue section where we can add the Forecasted GMV Revenue.

Step 1: +Add new revenue stream and select "Revenue Only"

Step 2: Select Custom Formula and enter the revenue details, as shown below.

Step 4: Now Finmark will automatically calculate your total GMV Revenue Forecast Over-Time.

Step 5: Next step will be to model the commission you paying back towards partnerships or distributors. You can do this in the expenses section and link the expense to the revenue stream.

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