3 ms·

I see, so it looks like what's being measured here is "gross merchandise volume", which is the total value of orders placed on their platform. Whereas the reven

I see, so it looks like what's being measured here is "gross merchandise volume", which is the total value of orders placed on their platform. Whereas the revenue in their financial statements is the money they make from advertising and their other businesses.

adventured 9y ago
That's right. eBay's gross merchandise volume for example was $84 billion in fiscal 2016 (their revenue take was $9 billion). Every year the media makes a big deal about Alibaba's merchandise volume. It's a cute soundbite, and it's certainly a large number, but it's not how they make money at all. Their own revenue can technically grow far faster or slower than the merchandise volume (I would expect them to outperform their merchandise volume growth rate in the coming years, as they increase ad rates as China's economy scales the value ladder & GDP per capita keeps climbing, while their manufacturing and exports grow very modestly if at all).