eBay and Etsy Remain Optimistic Amid Tariff Challenges: Navigating the E-commerce Landscape
The secondhand industry is navigating the complexities introduced by President Donald Trump’s tariffs, but major platforms like eBay and Etsy are showing resilience. Despite challenges, both companies are adapting to the current economic landscape, largely due to their sellers’ sourcing strategies.
Impact of Tariffs on eBay and Etsy
During their Q1 2025 earnings calls, both eBay and Etsy addressed the potential impact of tariffs on their businesses. Unlike import-heavy competitors such as Temu and Shein, many sellers on eBay and Etsy primarily source their products locally. This local sourcing strategy has helped them mitigate the effects of tariffs.
Key Insights from Earnings Reports
- eBay’s CEO Jamie Iannone reported that only about 5% of their gross merchandise value (GMV) is derived from China, indicating low exposure to tariffs.
- Etsy’s CFO Lanny Baker noted that just over 1% of their gross merchandise sales come from U.S. imports sourced from sellers in China.
- Etsy’s CEO Josh Silverman emphasized that 90% of Etsy sellers are solo entrepreneurs who source their supplies domestically.
Challenges in the Secondhand Market
Despite their advantages, both platforms face challenges related to economic uncertainty and changing consumer spending habits. Etsy, in particular, is slightly more vulnerable due to its focus on higher-priced handcrafted and vintage goods. This focus has led to a:
- 3.4% decline in active buyers, dropping the total to 88.5 million.
- 11% decrease in habitual buyers, now totaling 6.2 million.
- 8.9% fall in gross merchandise sales (GMS), down to $2.3 billion.
Opportunities for Growth
On a brighter note, Etsy continues to benefit from its ownership of Depop, a secondhand fashion platform that has seen record-high GMS since its acquisition in 2021. Silverman stated, “Etsy has a strong track record of navigating turbulent macroeconomic conditions, and we’re confident in our ability to keep adapting.”
In contrast, eBay appears to be in a stronger position as an increasing number of price-conscious shoppers turn to used and refurbished goods. Currently, over 40% of eBay’s inventory consists of these types of products. The company saw:
- Gross merchandise volume (GMV) rise to $18.8 billion.
- Revenue increase exceeding 1%, reaching $2.58 billion.
According to eBay’s CFO, Steve Priest, “We have observed healthy volume trends due to strength in our focus categories and what could be a modest pull forward of demand from consumers worried about increased costs and complexity at U.S. customs in the near future.”
In conclusion, while both eBay and Etsy are experiencing the ripple effects of tariffs and economic uncertainty, their unique business models and strategies may help them weather the storm. For more insights on the secondhand industry, visit our blog or explore resources on consumer spending trends.
