eBay & Etsy Weather Tariff Storm

The secondhand market faces challenges from recent tariffs, but eBay and Etsy appear relatively unfazed. Both companies recently reported Q1 2025 earnings, highlighting their resilience.

Minimal Exposure to Tariffs

Unlike import-dependent competitors like Temu and Shein, who recently raised prices, eBay and Etsy benefit from a predominantly domestic seller base. Many sellers focus on locally sourced, used, vintage, or handmade items.

eBay CEO Jamie Iannone stated that imports from Greater China to the U.S. represent only 5% of their gross merchandise value (GMV), with total imports from China under 10%.

“Our greater China to U.S. quarter makes up about 5% of total [gross merchandise value] for us. And China overall is a little less than 10%.”

Etsy CFO Lanny Baker echoed this sentiment, revealing that just over 1% of their gross merchandise sales (GMS) originate from U.S. imports purchased from Chinese sellers.

“At present, Etsy’s direct tariff exposure appears to be relatively low given that just over 1% of [gross merchandise sales] comes from U.S. imports of items purchased from sellers in China.”

Etsy CEO Josh Silverman added that 90% of their sellers, primarily solo entrepreneurs, source supplies domestically.

“Most are solo entrepreneurs working from their home with 90% sourcing their supplies domestically.”

Navigating Economic Uncertainty

While tariffs pose a minimal threat, both companies acknowledge the challenges of economic uncertainty and changing consumer spending.

Etsy, with its focus on higher-priced handcrafted and vintage goods, saw a 3.4% year-over-year decline in active buyers, totaling 88.5 million. Habitual buyers decreased by 11% to 6.2 million. GMS also declined 8.9% to $2.3 billion.

However, Etsy's ownership of Depop, a secondhand fashion platform, provides a bright spot. Depop achieved record-high GMS since its acquisition in 2021, although specific figures were not disclosed.

“Etsy has a strong track record of navigating turbulent macroeconomic conditions, and we’re confident in our ability to keep adapting.”

eBay appears better positioned, as budget-conscious shoppers increasingly turn to used and refurbished goods, which comprise over 40% of its inventory. The company reported increased spending from customers seeking to avoid tariffs.

“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.”

eBay's GMV grew to $18.8 billion, with revenue increasing over 1% to $2.58 billion.

While both companies face challenges, their domestic focus and adaptability position them well to navigate the current economic climate.