eBay and Etsy Show Resilience Amid Tariff Pressures, but Etsy Faces Buyer Slowdown
As U.S. businesses navigate the effects of renewed tariffs under President Donald Trump’s administration, companies across industries are evaluating their exposure — including players in the secondhand market. But platforms like eBay and Etsy appear largely unfazed, thanks to the nature of their sellers and supply chains.
Both companies addressed the tariff situation during their Q1 2025 earnings calls this week, downplaying its potential impact. Unlike competitors such as Temu and Shein — which have had to hike prices due to their reliance on Chinese imports — eBay and Etsy benefit from sellers who primarily source goods domestically. Their inventories consist largely of used, vintage, handmade, or refurbished items.
Minimal Exposure to Chinese Imports
eBay CEO Jamie Iannone highlighted that goods shipped from China to the U.S. account for just 5% of eBay’s gross merchandise value (GMV), with all China-related GMV coming in under 10%. Similarly, Etsy CFO Lanny Baker reported that only about 1% of Etsy’s gross merchandise sales (GMS) involve direct imports from China.
Etsy CEO Josh Silverman reinforced that most sellers are independent creators working from home, with 90% sourcing materials locally — a clear buffer against tariffs. However, the broader economic environment still poses a challenge, especially for Etsy.
Etsy Struggles with Buyer Retention and Spending
While Etsy isn’t seeing a direct tariff impact, consumer caution is taking a toll. The company reported a 3.4% year-over-year drop in active buyers, now totaling 88.5 million. More notably, habitual buyers — those who purchase frequently — declined 11% to 6.2 million. Marketplace GMS also fell 8.9% to $2.3 billion.
Still, Etsy found a bright spot in Depop, its secondhand fashion platform acquired in 2021. Though specific figures weren’t disclosed, the company said Depop achieved record GMS, proving resilient amid economic uncertainty.
“We’ve weathered macroeconomic challenges before, and we remain confident in our ability to adapt,” Silverman stated.
eBay Sees Growth from Tariff-Aware Shoppers
In contrast, eBay is benefiting from the shifting consumer mindset. With more shoppers seeking affordable, secondhand goods to avoid price hikes and potential customs issues, eBay has seen increased demand. The company reported $18.8 billion in GMV for the quarter and a revenue increase of over 1%, reaching $2.58 billion.
“We’re seeing healthy volume trends, partly driven by focus categories and what may be a modest pull forward in demand due to concerns about tariffs and customs delays,” said eBay CFO Steve Priest.
Over 40% of eBay’s inventory consists of used and refurbished goods — a strong draw for budget-conscious shoppers and a key differentiator in today’s market.
