Tariff Effects on the Industry

As the secondhand sector adapts to an evolving economic landscape, the ramifications of President Trump’s tariffs remain a key issue. Despite these pressures, platforms like eBay and Etsy have reported a surprising resilience.

Performance Overview of eBay and Etsy

Both companies addressed the issue during their Q1 2025 earnings calls, providing insights into their minimal exposure to tariffs. eBay’s CEO, Jamie Iannone, stated, “Our greater China to U.S. quarter makes up about 5% of total [gross merchandise value] for us. And China overall is a little less than 10%.”

Similarly, Etsy’s CFO Lanny Baker mentioned, “At present, Etsy’s direct tariff exposure appears to be relatively low given that just over 1% of [gross merchandise sales] comes from U.S. imports of items purchased from sellers in China.” This highlights their effective coping strategies.

Local Sourcing as a Competitive Advantage

Many sellers on eBay and Etsy rely predominantly on local sourcing, setting them apart from competitors heavily reliant on imports, such as Temu and Shein. eBay’s focus on used and refurbished items, which comprise over 40% of its inventory, aligns with consumer preferences for budget-friendly options.

Challenges and Consumer Behavior

Despite favorable sourcing strategies, both platforms face challenges stemming from economic uncertainty and shifting consumer spending. Etsy, in particular, reported a decline of 3.4% in active buyers versus the previous year, now totaling 88.5 million, with habitual buyers down by 11% to 6.2 million.

Etsy also faced an 8.9% decrease in gross merchandise sales (GMS), which fell to $2.3 billion. This performance underscores the challenges within its target market, which largely comprises higher-priced handcrafted and vintage goods.

Strengths and Future Outlook

On a more positive note, Etsy’s ownership of Depop, a secondhand fashion platform, has contributed positively during economic downturns, signaling potential for growth. CEO Josh Silverman remarked, “Etsy has a strong track record of navigating turbulent macroeconomic conditions, and we’re confident in our ability to keep adapting.”

Conversely, eBay has benefited from heightened interest in used goods as consumers seek to avoid higher prices associated with tariffs. Their revenue grew over 1% to $2.58 billion, with gross merchandise volume reaching $18.8 billion, driven by increased demand from price-conscious shoppers.