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eBay and Etsy Show Resilience Against Tariff Pressures: Q1 2025 Analysis
Table of Contents
Market Overview and Tariff Impact
The secondhand industry, like many sectors in the business world, is navigating the complexities of President Donald Trump’s tariffs. However, recent earnings reports from eBay and Etsy reveal a notably resilient position, largely attributed to their unique business models and sourcing strategies.
Key Market Dynamics
Unlike import-dependent competitors such as Temu and Shein, which have recently implemented price increases due to tariffs, eBay and Etsy’s sellers predominantly source products locally, focusing on used, vintage, or handmade items. This strategic difference has provided significant insulation against tariff impacts.
eBay’s Strong Performance
eBay has demonstrated remarkable resilience in Q1 2025, capitalizing on increasing consumer preference for used and refurbished goods, which constitute over 40% of its inventory. The platform has seen positive momentum from price-conscious shoppers seeking to avoid tariff-related price increases.
“We have observed healthy volume trends due to strength in our focus categories and what could be a modest pull forward of demand from consumers worried about increased costs and complexity at U.S. customs in the near future.”
Steve Priest, eBay CFO
eBay’s Q1 2025 Highlights
- Gross Merchandise Volume (GMV): $18.8 billion
- Revenue Growth: Over 1% increase to $2.58 billion
- China Exposure: Less than 10% of total business
- Used/Refurbished Goods: Over 40% of inventory
Etsy’s Market Position
While Etsy maintains relatively low tariff exposure, the platform faces unique challenges related to its premium positioning in the market. The company’s focus on handcrafted and vintage goods, typically commanding higher prices, has led to some pressure on consumer engagement metrics.
Competitive Advantages
Both platforms maintain significant advantages over competitors like Temu, Shein, and Amazon, primarily through their focus on local sourcing and unique product offerings. Etsy’s ownership of Depop, which has achieved record-high GMS, provides additional strength in the secondhand fashion market.
“Most are solo entrepreneurs working from their home with 90% sourcing their supplies domestically.”
Josh Silverman, Etsy CEO
Future Outlook and Strategies
Strategic Positioning
Both eBay and Etsy are well-positioned to navigate ongoing economic uncertainties through their differentiated market approaches. eBay’s strength in the used and refurbished goods segment, combined with Etsy’s established position in handcrafted items and strategic acquisitions like Depop, provides multiple growth avenues despite macroeconomic pressures.
“Etsy has a strong track record of navigating turbulent macroeconomic conditions, and we’re confident in our ability to keep adapting.”
Josh Silverman, Etsy CEO
Published on May 3, 2025
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