# Resale Resilience: eBay and Etsy Navigate Tariff Turbulence with Confidence

## Resale Resilience: eBay and Etsy Navigate Tariff Turbulence with Confidence

The secondhand marketplace is weathering the storm of global tariff pressures, and according to recent reports, eBay and Etsy are proving surprisingly buoyant. Despite widespread concerns across various business sectors regarding President Trump’s tariffs, both companies expressed a relatively optimistic outlook during their Q1 2025 earnings calls.

Their confidence stems from the sourcing strategies employed by their sellers. Unlike import-heavy marketplaces like Temu and Shein, which recently increased prices to offset tariff costs, eBay and Etsy largely benefit from sellers who source products locally, often specializing in used, vintage, or handmade goods. This domestic focus significantly reduces their exposure to international tariffs.

eBay’s CEO, Jamie Iannone, highlighted this advantage, stating that “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%.” Etsy’s CFO, Lanny Baker, echoed this sentiment, noting, “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.” CEO Josh Silverman further emphasized that “Most are solo entrepreneurs working from their home with 90% sourcing their supplies domestically.”

This localized sourcing gives eBay and Etsy a significant edge against competitors heavily reliant on imported goods. However, the companies are not immune to other economic headwinds. Concerns about consumer spending habits and broader economic uncertainty remain.

Etsy, in particular, seems more susceptible to these pressures. While largely shielded from tariffs, Etsy’s focus on handcrafted and vintage items, often priced higher, has led to some challenges. The platform reported a 3.4% year-over-year decline in active buyers, bringing the total down to 88.5 million. Habitual buyers also decreased by 11%, totaling 6.2 million. Furthermore, gross merchandise sales (GMS) for the marketplace declined by 8.9% to $2.3 billion.

A bright spot for Etsy remains its ownership of Depop, the secondhand fashion platform, which continues to thrive amidst economic anxieties and has achieved record-high GMS since being acquired in 2021. Specific figures were not disclosed. “Etsy has a strong track record of navigating turbulent macroeconomic conditions, and we’re confident in our ability to keep adapting,” Silverman stated, underscoring the company’s resilience.

eBay, on the other hand, appears to be in a stronger position. Price-conscious consumers are increasingly drawn to used and refurbished goods, which the company claims represent over 40% of its inventory. In anticipation of tariffs, customers have also seemingly increased their spending, providing a positive start to the quarter for eBay.

“We have observed healthy volume trends due to strength in our focus categories and what could be a modest pull forward of demand from consumers worried about increased costs and complexity at U.S. customs in the near future,” said eBay’s CFO, Steve Priest.

The company’s gross merchandise volume (GMV) grew to $18.8 billion, and revenue increased by over 1% to $2.58 billion.

In conclusion, while the secondhand industry navigates complex economic conditions, eBay and Etsy’s unique business models, particularly their focus on locally sourced and pre-owned goods, have positioned them to withstand tariff pressures more effectively than some of their import-dependent competitors. However, the broader economic climate and changing consumer behaviors will continue to play a critical role in their future performance.