These two figures are the most important figures in the context of working out your profits.
We use GMV to represent the Gross Merchandise Value from all your sales including any cancellations. An important distinction that we make is that we also account for buyer paid shipping fees - these should not be included in the GMV figure because they are not representative of actual sales - and you do not receive payment for them.
The calculations are as follows:
GMV
(Customer Payment - Buyer Shipping Fees) + Platform Discounts
Net Sales (multiple parts)
Net Payment: (Total Customer Payment - Total Cancelled Customer Payments) - Buyer Shipping Fees
Final Calculation: Net Payment + Platform Discounts
Net sales is the figure we use to subtract everything else off like affiliates, cogs, vat, etc. The idea is that net sales represents sales with any cancellation revenue subtracted, and any platform discounts added to the total because you are not liable for those.
Notes: We do not include seller discounts in GMV/Net Sales because they are not included in the customer's payment - thus they are already removed from the calculation.