Like practically every sector of the business world, the second hand industry is struggling with the branches of the rates of President Donald Trump.
However, based on the comments made by Ebay and Etsy at the beginning of this week, both do not seem to be excessively worried.
The companies recently reported the results of the profits of the first quarter 2025, both facing the urgent topic of rates. Ebay and Etsy are resilient to a certain extent, largely due to the approaches of their sellers to the supply of products. Contrary to rivals relating to imports such as Temu and Shein, who recently increased prices in response to rates, many eBay and Etsy sellers in the United States mainly provide their products at local level, often selling used articles, vintage or handmade.
Companies provided data during calls for profits to demonstrate the minimum exposure to rates.
Jamie Iannone, CEO of Ebay, said: “Our largest district of China in the USA constitutes about 5% of the total (value of the gross goods) for the United States. And the overall China is just under 10%”.
Likewise, the CFO of Etsy, Lanny Baker, said: “Currently, the direct tariff exposure of Etsy seems to be relatively low date that just over 1% of the gross goods (sales of gross) comes from the American imports of articles purchased by sellers in China”.
The CEO of Etsy, Josh Silverman, added: “Most are solo entrepreneurs who work from home with 90% supply of their supplies at national level”.
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Having sellers with local supply strategies can offer a significant advantage over competitors such as Temu, Shein and Amazon. However, second -hand companies have yet to face the challenges that derive from the current economic uncertainty and the consumer spending habits.
Etsy seems to be slightly more vulnerable when it comes to this. Etsy’s main business model focuses on craft and vintage goods, which tend to have a higher price. So, while Etsy sellers may not feel the effects of rates, customers are still hesitant to spend, leading to a 3.4% drop on an annual basis of active buyers, bringing the total to 88.5 million. The number of usual buyers fell by 11%, for a total of 6.2 million.
In addition, Etsy recorded a drop in 8.9% of gross goods sales (GMS) for the market for $ 2.3 billion.
On a positive note, Etsy continues to benefit from its ownership as a Depop, a second -hand fashion platform that remains popular between the looming recession. Since he acquired Depop in 2021, the platform has reached GM Alti Record. The company has not revealed specific data.
“Etsy has a solid experience in navigation of turbulent macroeconomic conditions and we are confident in our ability to continue adapting,” Silverman said.
On the contrary, Ebay is in a stronger position because the most attentive buyers at prices choose used and renewed goods, which the company has said that it represents over 40% of its inventory. The company reported that customers eager to avoid rates have increased their expenses, giving ebay a solid start in the quarter.
“We have observed healthy volume trends because of the force in our focus categories and what could be a modest push of the demand by consumers concerned about the increase in costs and the complexity in US customs in the near future,” said the CFO of Ebay, Steve Priest.
The volume of gross goods of the company (GMV) grew to $ 18.8 billion, while the revenues increased by more than 1% to $ 2.58 billion.
