**USA:** Despite new tariffs causing sector-wide challenges, eBay and Etsy report resilience with minimal tariff impact due to local sourcing and secondhand focus. Etsy faces buyer declines but benefits from Depop, while eBay’s used goods inventory fuels growth amid economic uncertainty.
The secondhand marketplace sector is currently navigating challenges posed by recent tariffs imposed by the Trump administration, yet leading platforms eBay and Etsy have demonstrated a notable degree of confidence in overcoming these pressures. Following the release of their first-quarter financial results for 2025, executives from both companies addressed concerns regarding the potential impact of increasing tariffs on their operations.
eBay’s CEO, Jamie Iannone, stated that the direct impact of tariffs on the company’s sales is minimal. He pointed out that the trade from Greater China to the United States constituted about 5% of eBay’s total gross merchandise value, while overall sales from China made up less than 10%. Similarly, Etsy’s CFO, Lanny Baker, highlighted that imports from China account for only slightly more than 1% of the platform’s total gross merchandise sales. Etsy’s CEO, Josh Silverman, provided further insight, revealing that around 90% of Etsy sellers source their products domestically, often operating as solo entrepreneurs from their homes. This focus on local sourcing positions both companies advantageously compared to other platforms heavily reliant on imported goods, such as Temu and Shein, which have begun to pass on the costs of tariffs to customers through increased prices.
Despite their overall resilience, Etsy faces specific challenges related to its business model. The platform primarily deals in handcrafted and vintage items that tend to be priced higher than mass-produced alternatives. Amid ongoing economic uncertainty, consumer caution has led to a decline in Etsy’s active buyer count by 3.4%, reducing the number to 88.5 million. Furthermore, the number of habitual buyers on the site saw an 11% drop, down to 6.2 million. Gross merchandise sales for Etsy fell by 8.9% in the past quarter, amounting to $2.3 billion.
On a more positive note, Etsy has a strategic advantage through its ownership of Depop, a secondhand fashion marketplace acquired in 2021. As more consumers turn to secondhand platforms for affordable options, Depop has reported record-high gross merchandise sales, although specific figures were not disclosed. Silverman expressed confidence in Etsy’s ability to navigate challenging macroeconomic conditions, stating, “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 optimally positioned to benefit from the growing demand for affordable alternatives. The platform boasts over 40% of its inventory consisting of used or refurbished items, which aligns well with current consumer trends towards cost-saving solutions. This focus has resulted in a boost to eBay’s performance, driving gross merchandise volume up to $18.8 billion in the quarter and contributing to a slight increase in total company revenue, reaching $2.58 billion. CFO Steve Priest noted that healthy volume trends related to core categories had been observed, suggesting a possible increase in consumer spending provoked by rising costs and complexities at U.S. customs.
Both Etsy and eBay maintain an optimistic outlook, believing that their localisation strategies and focus on secondhand products will provide a buffer against the stressors introduced by recent tariff actions.
Source: Noah Wire Services
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