eBay and Etsy Maintain Their Confidence Despite Tariff Pressures.
Like almost all sectors of the business world, the second-hand industry is facing the consequences of the tariffs imposed by President Donald Trump. However, both eBay and Etsy do not seem to be overly concerned about this situation.
The secondhand goods industry is facing the effects of tariffs imposed by the administration of former President Donald Trump, much like many other sectors of the business world. However, recent statements from companies eBay and Etsy suggest they are not overly concerned about this situation. During the first quarter earnings reports for 2025, both mentioned the impact of the tariffs.
One reason these companies appear to be better prepared is their sellers' focus on locally sourced products. Unlike competitors that rely on imports, such as Temu and Shein, which have raised their prices in response to tariffs, many sellers on eBay and Etsy in the United States primarily offer used, vintage, or handmade items. During the earnings calls, eBay shared data highlighting its low exposure to tariffs. Jamie Iannone, eBay's CEO, reported that trade between China and the U.S. accounts for approximately 5% of the company's total merchandise value, and China's global share is just under 10%. Meanwhile, Lanny Baker, CFO of Etsy, noted that less than 1% of total sales come from Chinese imports.
Etsy CEO Josh Silverman added that most of its sellers are individual entrepreneurs operating from their homes and that 90% of their supplies are locally sourced. This gives the platforms a competitive edge over others like Temu, Shein, and Amazon. However, secondhand companies still have to deal with economic uncertainty and changing consumer habits. Etsy, in particular, faces slight vulnerability as its business model centers on handmade and vintage products, which tend to be priced higher. This has led to a 3.4% decrease in the number of active buyers, now totaling 88.5 million, and an 11% drop in regular buyers, totaling 6.2 million. Additionally, Etsy reported an 8.9% decrease in gross merchandise sales, reaching $2.3 billion.
Despite these challenges, Etsy continues to benefit from its acquisition of Depop, a secondhand fashion platform that has maintained its popularity amid the recession. Since acquiring Depop in 2021, this platform has achieved record sales, although the company did not reveal specific figures. Silverman expressed confidence in Etsy's ability to adapt to difficult macroeconomic conditions.
In comparison, eBay is in a stronger position, as an increasing number of price-sensitive buyers opt for used and refurbished items, which represent more than 40% of its inventory. The company reported an increase in gross merchandise volume that reached $18.8 billion, and its revenue grew by more than 1%, totaling $2.58 billion. Steve Priest, eBay's CFO, commented that they have noticed healthy volume trends in their priority categories, partly driven by increased demand due to consumer concerns over rising costs and complexities in U.S. customs.