The two craft-focused websites seem to be keeping unusually calm while Temu and Shein do their best to adjust pricing and policies under the weight of Trump’s 145% tariffs on China. Both eBay and Etsy have been veterans in promoting secondhand and handmade goods, thus showing how far local options and vintage charm can go in saving the platforms from the vagaries of global trade turmoil.
Not So Global After All
On earnings calls this week, both companies struck a measured but confident tone about their exposure to tariffs.
eBay CEO Jamie Iannone revealed that goods flowing from China to the U.S. accounted for only about 5% of their total gross merchandise value (GMV). “China overall is a little less than 10%,” he said, making clear that eBay is far from dependent on imports to drive its business.
Etsy’s CFO, Lanny Baker, shared an even more minimal figure: just over 1% of Etsy’s gross merchandise sales (GMS) come from U.S. imports from China. Most Etsy sellers, he emphasized, are solo creators who source materials and create products locally. That’s a big contrast to platforms that are basically pipeline extensions for Chinese manufacturing.
Secondhand Goods, First-Line Defense
Josh Silverman, Etsy’s CEO, also pointed to the company’s domestic sourcing model, saying “90% of our sellers source supplies locally.” That gives Etsy a cushion as tariffs squeeze other parts of the e-commerce ecosystem. Yet the company isn’t entirely immune.
Though tariffs haven’t touched their operations directly, Etsy still faces softening consumer demand. With inflation still looming and discretionary spending cooling off, higher-priced handcrafted items are a tougher sell. Active buyers dropped 3.4% year-over-year, falling to 88.5 million. Even more concerning, habitual buyers—those who purchase frequently—were down 11%.
Marketplace GMS slid by 8.9% to $2.3 billion, a drop that shows consumers are pulling back even if tariffs aren’t the root cause.
Still, Etsy has an ace up its sleeve: Depop, the secondhand fashion app it acquired in 2021. It’s growing in popularity, especially with younger, thrift-savvy users. Etsy didn’t reveal numbers but called the platform’s performance “record-breaking.”
eBay Finds Its Moment
eBay, meanwhile, is thriving as frugal shoppers look for value. Over 40% of items sold on eBay are used or refurbished, making it a natural landing spot for consumers looking to bypass higher prices, supply chain delays, and customs headaches.
That’s proving to be a strength. CFO Steve Priest said eBay is seeing a “modest pull forward of demand” from customers eager to beat any further tariff-related price hikes. The result? GMV jumped to $18.8 billion, and revenue ticked up to $2.58 billion, a more than 1% increase.
A Tale of Two Platforms in a Shifting Market
The takeaway is clear: sourcing matters—especially when tariffs are in play. Etsy and eBay’s focus on local, secondhand, or handmade goods makes them less vulnerable to international policy changes compared to peers like Amazon or Shein.
Yet while eBay is catching a tailwind from cautious, deal-hungry consumers, Etsy is feeling the pinch of economic caution on its premium-priced offerings. Its saving grace might be Depop’s ongoing popularity and Gen Z’s growing love affair with upcycled fashion.
As tariff talks continue and consumer sentiment remains fragile, both companies appear well-positioned to adapt. Whether through vintage handbags or pre-owned laptops, they’re reminding the market that not everything needs to come straight from a factory floor in Shenzhen to succeed.
