eBay and Etsy are relatively confident despite tar...

Like just about each sector within the enterprise world, the secondhand trade is grappling with the ramifications of President Donald Trump’s tariffs. 

Nonetheless, based mostly on the feedback made by eBay and Etsy earlier this week, each don’t seem like overly involved. 

The businesses lately reported Q1 2025 earnings outcomes, each addressing the urgent subject of tariffs. eBay and Etsy are resilient to an extent, largely as a consequence of their sellers’ approaches to sourcing merchandise. In distinction to import-reliant rivals like Temu and Shein, which recently raised prices in response to tariffs, many eBay and Etsy sellers within the U.S. primarily supply their merchandise regionally, typically promoting used, classic, or handmade objects.

The businesses supplied information throughout their earnings calls to show the minimal publicity to tariffs.

eBay’s CEO Jamie Iannone mentioned, “Our larger China to U.S. quarter makes up about 5% of complete [gross merchandise value] for us. And China general is rather less than 10%.” 

Equally, Etsy’s CFO, Lanny Baker, mentioned, “At current, Etsy’s direct tariff publicity seems to be comparatively low on condition that simply over 1% of [gross merchandise sales] comes from U.S. imports of things bought from sellers in China.”

Etsy’s CEO, Josh Silverman, added, “Most are solo entrepreneurs working from their dwelling with 90% sourcing their provides domestically.” 

Having sellers with native sourcing methods can present a major benefit over rivals like Temu, Shein, and Amazon. Nonetheless, secondhand firms nonetheless need to take care of the challenges that include the continuing financial uncertainty and shopper spending habits.

Etsy seems to be barely extra susceptible with regards to this. Etsy’s core enterprise mannequin focuses on handcrafted and classic items, which are usually priced greater. So, whereas Etsy sellers could not really feel the consequences of tariffs, clients are nonetheless hesitant to spend, resulting in a 3.4% year-over-year decline in energetic patrons, bringing the whole to 88.5 million. The variety of routine patrons was down 11%, totaling 6.2 million. 

Moreover, Etsy reported an 8.9% decline in gross merchandise gross sales (GMS) for {the marketplace} to $2.3 billion.

On a constructive word, Etsy continues to learn from its possession of Depop, a secondhand trend platform that is still common amid the looming recession. Since buying Depop in 2021, the platform has achieved record-high GMS. The corporate didn’t disclose particular figures.

“Etsy has a robust observe document of navigating turbulent macroeconomic situations, and we’re assured in our capacity to maintain adapting,” Silverman mentioned. 

In distinction, eBay is in a stronger place as a result of extra price-conscious customers are selecting used and refurbished items, which the corporate mentioned accounts for over 40% of its stock. The corporate reported that clients desperate to keep away from tariffs have elevated their spending, giving eBay a strong begin to the quarter.

“We have now noticed wholesome quantity tendencies as a consequence of energy in our focus classes and what may very well be a modest pull ahead of demand from shoppers frightened about elevated prices and complexity at U.S. customs within the close to future,” mentioned eBay’s CFO, Steve Priest.

The corporate’s gross merchandise quantity (GMV) grew to $18.8 billion, whereas income elevated over 1% to $2.58 billion.