While many online marketplaces struggle with rising tariffs, eBay and Etsy remain surprisingly resilient. Unlike competitors like Temu and Shein, which rely heavily on imports, these platforms benefit from sellers who mostly source locally – selling used, vintage, or handmade goods. This strategy shields them from the worst of tariffs impacts, giving them an edge in a tough economy.
Recent earnings reports reveal how little eBay and Esty depend on Chinese imports. eBay’s CEO, Jamie Lannone, shared that only about 5% of their U.S. sales come from China, while Esty’s CFO, Lanny Baker, said just over 1% of their sales involve Chinese imports. Etsy’s CEO, Josh Silverman, added that 90% of their sellers source supplies domestically, often working from as solo entrepreneurs.
Still, challenges remain. Esty, known for pricier handmade and vintage items, saw a 3.4% drop in active buyers (down to 88.5 million) and an 11% decline in repeat shoppers. Gross merchandise sales (GMS) also fell by 8.9% to $2.3 billion. However, Depop – Esty’s secondhand fashion platform – continues to thrive, hitting record sales since its 2021 acquisition.
eBay, on the other hand, is benefiting from budget – conscious shoppers turning to used and refurbished goods, which make up over 40% of its inventory. With buyers rushing to avoid future tariff hikes, eBay saw a 1% revenue increase to 2.58billionandgrossmerchandisevolume(GMV)riseto18.8 billion.
Both companies remain optimistic. Esty believes it can weather economic storms, while eBay expects continued growth as shoppers seek affordable alternatives. In a market squeezed by tariffs, their local-focused models may just be the winning formula.
By
