The secondhand marketplace sector, like most industries, is feeling pressure from President Trump’s recent tariffs; still, marketplace leaders eBay and Etsy remain notably confident that they can weather the storm.
After releasing their first-quarter 2025 financial results this week, both companies addressed market concerns about potential fallout from increasing tariffs. Executives emphasized the limited tariff exposure for both platforms, thanks to the local and domestic sourcing strategies favored by their sellers.
eBay CEO Jamie Iannone highlighted that tariffs directly impact only a small portion of the company’s sales. “Our greater China to U.S. quarter makes up about 5% of total gross merchandise value, and overall sales from China represent less than 10%,” he explained. Etsy echoed this sentiment, with CFO Lanny Baker noting that only slightly more than 1% of Etsy’s total gross merchandise sales involve U.S. imports from China. Etsy CEO Josh Silverman added context, stating that the majority of Etsy sellers—around 90 percent—source domestically and typically operate as solo entrepreneurs working from their homes.
This localized focus gives both Etsy and eBay a strategic advantage over platforms heavily reliant on imports, such as Temu and Shein, which have already begun passing tariff costs onto customers through price increases.
Nonetheless, Etsy faces some challenges unique to its business model. With handcrafted and vintage items generally priced higher than mass-produced alternatives, Etsy has struggled lately as cautious consumers become reluctant to spend amid continued economic uncertainty. This hesitancy contributed to a year-over-year drop in Etsy’s active buyer count by 3.4%, down to 88.5 million, and an 11% decrease in habitual buyers, bringing that total down to 6.2 million. Additionally, Etsy’s gross merchandise sales declined 8.9% this past quarter, reaching $2.3 billion.
However, Etsy still holds a strong card through its ownership of Depop, a popular secondhand fashion marketplace acquired in 2021. Depop is thriving as bargain-conscious consumers increasingly embrace secondhand platforms amid economic challenges, and although exact figures were not provided, Etsy confirmed Depop has achieved record-high gross merchandise sales.
“Etsy has a strong track record of navigating turbulent macroeconomic conditions, and we’re confident in our ability to keep adapting,” said Silverman.
In contrast, eBay appears better positioned to capitalize on rising customer demand for affordable alternatives. With over 40% of eBay’s inventory made up of used or refurbished items, the platform has benefited significantly as shoppers seek cost-saving options. This trend has boosted eBay’s performance significantly, driving gross merchandise volume upward to $18.8 billion during the quarter, and pushing total company revenue slightly higher, at $2.58 billion.
eBay CFO Steve Priest noted, “We have observed healthy volume trends related to our core focus categories, along with a possible modest pull-forward in consumer spending due to shoppers’ worries about higher costs and potential complexities at U.S. customs.”
Both Etsy and eBay remain optimistic in their outlook despite potential economic headwinds, confident that their localized sourcing and secondhand-focus positioning will help buffer them from recent tariff-related stress points.
