As practically all business sectors, the used industry is struggling with the ramifications of President Donald Trump’s prices.
However, based on comments from the comments by Ebay and Etsy earlier this week, the two do not seem to be too concerned.
The companies recently announced profits of profits in the first quarter of 2025, both approaching the urgent subject of prices. Ebay and Etsy are resistant to a certain extent, largely due to the approaches of their sellers for product supply. Unlike import rivals such as Temu and Shein, which recently increased prices in response to prices, many Ebay and Etsy sellers in the United States are mainly local, often selling used, vintage or handmade items.
Companies provided data during their profits to demonstrate the minimum exposure to prices.
Ebay CEO, Jamie Iannone, said: “Our Grand China district of US represents around 5% of the total [gross merchandise value] for us. And China overall is just under 10%. »»
Likewise, Etsy’s financial director, Lanny Baker, said: “Currently, the direct exposure of Etsy seems to be relatively low given that a little more than 1% of [gross merchandise sales] comes from American imports of items purchased from sellers in China. »»
Etsy CEO Josh Silverman added: “Most are solo entrepreneurs working from their home with 90% of their supply at the national level.”
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Having sellers with local supply strategies can provide a significant advantage over competitors like Temu, Shein and Amazon. However, used companies still have to meet the challenges that support continuous economic uncertainty and consumer spending habits.
Etsy seems to be slightly more vulnerable with regard to this. Etsy’s basic business model focuses on hand and vintage products, which tend to be higher. Thus, while Etsy sellers may not feel the effects of prices, customers still hesitate to spend, resulting in a 3.4% drop from one year to active buyers, which brings the total to 88.5 million. The usual number of buyers fell 11%, totaling 6.2 million.
In addition, Etsy declared a drop of 8.9% of gross sales (GMS) for the market to $ 2.3 billion.
On a positive note, Etsy continues to benefit from her Depop property, a used fashion platform that remains popular in the middle of the imminent recession. Since the acquisition of Depop in 2021, the platform has reached a record GMS. The company has not disclosed specific figures.
“Etsy has a solid reference to navigation on turbulent macroeconomic conditions, and we are confident in our ability to continue to adapt,” said Silverman.
On the other hand, Ebay is in a stronger position, because more buyers concerned with prices choose used and renovation goods, which, according to the company, represents more than 40% of its inventory. The company said that customers wishing to avoid prices had increased their expenses, which gives Ebay a solid start to the quarter.
“We have observed healthy trends in volume due to force in our categories of orientation and what could be a modest traction of consumer demand concern about the increase in costs and the complexity of American customs in the near future,” said Ebay financial director Steve Priest.
The company’s gross volume (GMV) increased to $ 18.8 billion, while income increased by more than 1% to $ 2.58 billion.
