eBay and Etsy Stay Strong Despite 2025 Tariff Pressures
Searching for how eBay and Etsy are handling tariffs in 2025? Good news — both companies are showing resilience in the face of increasing U.S.-China trade tensions. With smart sourcing strategies and a focus on secondhand and locally made goods, eBay and Etsy are better positioned to survive tariff hikes compared to competitors like Temu, Shein, and even Amazon. Here's an inside look at how they're weathering the storm and why their models might continue to thrive in today’s shifting economic landscape.
Like many sectors, the secondhand and handmade marketplaces have felt the ripple effects of President Donald Trump’s new tariffs. Yet, when eBay and Etsy reported their Q1 2025 earnings this week, neither showed signs of panic. Instead, they highlighted key advantages that make them less vulnerable compared to import-heavy rivals.
eBay's CEO Jamie Iannone shared that products shipped from China to the U.S. account for only about 5% of eBay's gross merchandise value (GMV), while Chinese imports overall represent less than 10%. This limited exposure helps shield eBay from significant tariff-related price hikes.
Similarly, Etsy’s CFO, Lanny Baker, noted that only about 1% of Etsy’s gross merchandise sales come from Chinese imports. Etsy CEO Josh Silverman emphasized that most sellers are solo entrepreneurs sourcing domestically — a major shield against tariff inflation.
Why Local Sourcing Gives eBay and Etsy a Competitive Edge
Unlike Temu, Shein, and other competitors facing rising import costs, eBay and Etsy sellers mainly deal in locally sourced goods. Whether it's vintage clothing, refurbished electronics, or handmade crafts, the emphasis on domestic supply chains is now a major advantage.
This approach not only minimizes direct tariff impact but also appeals to cost-conscious consumers looking to support local sellers — a trend gaining momentum as economic uncertainty continues.
Meanwhile, platforms like Temu and Shein have had to raise prices, risking their price-competitive edge and alienating bargain-hunting customers.
Challenges Still Loom for Etsy
Although Etsy’s local focus cushions it somewhat from tariffs, broader economic headwinds remain a concern. Handcrafted and vintage goods typically carry higher price tags, and hesitant consumer spending is starting to bite.
Etsy reported a 3.4% year-over-year decline in active buyers, dropping to 88.5 million users. The number of habitual buyers — a key metric for platform loyalty — fell by 11% to just 6.2 million. Gross merchandise sales (GMS) for Etsy’s marketplace declined 8.9%, landing at $2.3 billion for the quarter.
However, Etsy continues to find bright spots. Its acquisition of Depop, a secondhand fashion app, is paying off with record-high GMS, even as broader consumer demand softens. Depop’s appeal to Gen Z shoppers and thrift-conscious millennials helps buffer Etsy’s overall performance.
eBay Sees Growth from Refurbished and Used Goods
eBay appears even better positioned for the current climate. With over 40% of its inventory made up of used and refurbished goods, eBay caters directly to shoppers looking to avoid high import costs and navigate customs complications.
CFO Steve Priest reported that eBay’s focus categories are seeing healthy growth, with consumers possibly making early purchases to sidestep future tariff price increases. The company's GMV grew to $18.8 billion, while revenue climbed 1% year-over-year to $2.58 billion — a strong showing in a challenging economic environment.
Customers looking for affordable, quality alternatives to new imports are driving significant volume on eBay, helping it maintain momentum while other retailers struggle.
The Bigger Picture: Resilience Over Reliance
While tariffs and economic uncertainty will continue to shape the retail landscape throughout 2025, companies like eBay and Etsy demonstrate that resilience comes from local sourcing, diversified inventories, and community-driven selling models.
eBay’s refurbished goods strategy and Etsy’s handmade ethos may not just help them survive — they could actually lead in the next evolution of e-commerce. Consumers increasingly value affordability, sustainability, and authenticity — three pillars these platforms are uniquely equipped to deliver.
Whether you're a seller looking for a stable marketplace or a shopper trying to stretch your dollars in 2025, eBay and Etsy offer safe harbors amid the tariff storm.
Post a Comment