Like almost every sector in the business world, the second -hand industry is dealing with President Donald Trump’s tariffs.
However, based on comments made by Ebay and Etsy earlier this week, both do not seem to be extremely concerned.
Companies recently reported the results of the Q1 2025 profits, both addressed the pressing topic of tariffs. Ebay and Etsy are resilient to some extent, mainly due to their sellers’ approaches to product resources. In contrast to imported rivals such as TEMU and Shein, who recently raised prices in response to fees, many eBay and Etsy sellers in the SH.BA mainly derive their products in the country, often selling used, vintage or handmade items.
Companies provided data during their profits calls to demonstrate minimum exposure to tariffs.
The Director General of Ebay Jamie Iannone said, “Our big China in the US neighborhood accounts for about 5% of the total (value of gross goods) for us. And China is generally less than 10%.”
Similarly, Etsy’s CFO, Lanny Baker, said, “Currently, direct exposure to Etsy fees seems to be relatively low given that just over 1% of (gross goods) (sales) come from American imports of items purchased by sellers in China.”
Etsy’s general manager, Josh Silverman, added, “Most are solo entrepreneurs working from their home with 90% who help their supplies domestically.”
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Having sellers with local auxiliary strategies can provide an important advantage over competitors such as TEMU, Shein and Amazon. However, second -hand companies still have to deal with the challenges that come with the continued economic uncertainty and customer spending habits.
Etsy seems to be a little more vulnerable when it comes to this. The main business model of Etsy focuses on handmade and good quality goods, which tend to be higher. So, while Etsy sellers may not feel the effects of tariffs, clients are still reluctant to spend, leading to a 3.4% decrease in active buyers, leading the total to 88.5 million. The number of ordinary buyers was down 11%, at 6.2 million.
Moreover, Etsy reported a 8.9% decrease in gross goods (GMS) sales for $ 2.3 billion.
In a positive note, Etsy continues to take advantage of its ownership of Depop, a second -hand fashion platform that remains known among the near recession. Since the purchase of a depopi in 2021, the platform has reached high record GMS. The company did not detect specific figures.
“Etsy has a strong record for navigating turbulent macroeconomic conditions, and we are sure of our ability to continue adaptation,” Silverman said.
In contrast, eBay is in a stronger position because more priced buyers are choosing used and renovated goods, which the company said accounts for over 40% of its inventory. The company reported that eager customers to avoid tariffs have increased their expenses, giving eBay a strong start -up start.
“We have noticed tendencies of healthy volume due to strength in our concentration categories and what could be a modest attraction of demand from consumers concerned about increasing costs and complexity in US customs in the near future,” said CFA EBAY, Steve Prift.
The volume of company gross goods (GMV) increased to $ 18.8 billion, while revenues increased over 1% to $ 2.58 billion.
