Like most sectors of the business world, the secondhand market is feeling the impact of tariffs imposed during Donald Trump’s administration. However, recent quarterly reports from eBay and Etsy suggest both platforms are navigating these challenges with relative confidence.
Their resilience stems largely from their sourcing models. Unlike competitors such as Temu and Shein, which have raised prices due to their reliance on imports, many sellers on eBay and Etsy source locally—dealing in used, vintage, or handmade goods. This strategy has minimized their exposure to tariffs.
During their earnings presentations, both companies backed this advantage with concrete data. Jamie Iannone, CEO of eBay, noted that only 5% of their transactions occur between China and the U.S., with the Chinese market accounting for less than 10% of total volume. Meanwhile, Etsy CFO Lanny Baker pointed out that just 1% of their gross merchandise sales (GMS) come from Chinese imports.
Etsy CEO Josh Silverman reinforced this by explaining that most of their sellers are independent entrepreneurs who source materials domestically. This localized approach not only softens the impact of tariffs but also gives them an edge over giants like Amazon, Shein, and Temu.
Nevertheless, the broader economic climate remains a challenge. Etsy, in particular, faces greater pressure due to its focus on pricier handmade and vintage items. While tariffs don’t directly affect its sellers, consumer caution has led to a 3.4% drop in active buyers (to 88.5 million) and an 11% decline in repeat customers (to 6.2 million). Additionally, its GMS fell 8.9% to $2.3 billion.
However, Etsy finds support in Depop, its secondhand fashion platform, which continues to grow despite the recession. Since its acquisition in 2021, Depop has hit record GMS, though exact figures weren’t disclosed.
In contrast, eBay appears to be in a stronger position. With over 40% of its inventory consisting of refurbished or used products, it attracts price-sensitive shoppers seeking affordable alternatives. This, combined with possible stockpiling due to fears of future price hikes, has driven a solid quarterly performance.
eBay CFO Steve Priest credited this growth to “modestly pulled-forward demand from consumers concerned about costs and customs complexities.” The numbers support this optimism: gross merchandise volume (GMV) reached 18.8billion,whilerevenuerose118.8billion,whilerevenuerose12.58 billion.
Despite macroeconomic headwinds, both companies remain confident in their adaptability. Silverman highlighted Etsy’s experience in volatile environments, while eBay bets that its focus on reuse will keep appealing to cautious consumers.
By: Nestor Castillo, ForAllTechNews Director