eBay and Etsy are relatively confident despite tariff pressures

Tech Crunch - May 3rd, 2025

eBay and Etsy have shown resilience against the impact of President Donald Trump's tariffs, as revealed in their Q1 2025 earnings reports. Unlike competitors like Temu and Shein, which raised prices due to reliance on imports, eBay and Etsy benefit from sellers who mainly source products locally. eBay's CEO, Jamie Iannone, highlighted that only a small fraction of their gross merchandise value (GMV) is affected by tariffs. Similarly, Etsy's CFO, Lanny Baker, noted that less than 1% of their gross merchandise sales (GMS) come from Chinese imports. This local sourcing strategy provides a competitive edge over import-dependent rivals.

Despite their tariff resilience, Etsy faces challenges due to declining consumer spending. The company's model of selling higher-priced handcrafted and vintage goods has led to a decrease in active and habitual buyers, with a reported 8.9% decline in GMS. However, Etsy benefits from its ownership of Depop, a thriving secondhand fashion platform. Conversely, eBay is seeing growth, with a 1% revenue increase and a GMV of $18.8 billion, as more price-conscious shoppers turn to used and refurbished goods to avoid tariffs. This strategic focus on local and secondhand goods positions both companies to navigate economic uncertainties effectively.

Donald Trump Consumer Spending Tariffs Economic Impact Shein Temu Etsy E Bay Secondhand Industry Local Sourcing Depop

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RATING

6.2

Moderately Fair

Read with skepticism

The article provides a detailed examination of eBay and Etsy's resilience to tariffs and economic uncertainty, supported by statements from company executives. It effectively communicates the companies' strategies and performance, making it timely and relevant to current economic discussions. However, the lack of external sources and detailed data points limits the depth and balance of the analysis. Greater transparency in sourcing and a more balanced exploration of the competitive landscape would enhance the article's quality. Overall, the story offers valuable insights into corporate strategies but could benefit from a more comprehensive approach to ensure a fuller understanding of the broader industry context.

Accuracy

The story generally presents accurate information regarding eBay and Etsy's resilience to tariffs, supported by earnings call data. eBay's CEO's statement about China-related GMV and Etsy's CFO's comments on tariff exposure align with the companies' reported figures. However, the article lacks citations for specific data points, such as the exact figures for Depop's gross merchandise sales, which were mentioned but not detailed. This omission necessitates verification to ensure comprehensive accuracy. Additionally, while the statements about the secondhand industry's response to tariffs are plausible, they require corroboration from industry analysis to confirm the broader impact.

Balance

The article primarily focuses on eBay and Etsy, offering a detailed perspective on their strategies and performance. However, it briefly mentions competitors like Temu and Shein without providing a balanced view of their positions or strategies in response to tariffs. This creates a slight imbalance, as the reader is left with a limited understanding of the competitive landscape. The story could benefit from a more nuanced exploration of how other companies are affected by and responding to the same economic pressures.

Clarity

The article is well-structured and clearly communicates the main points regarding eBay and Etsy's resilience to tariffs and economic uncertainty. The language is straightforward, and the flow of information is logical, making it easy for readers to follow the narrative. However, the inclusion of more detailed data or examples could improve comprehension and provide a fuller picture of the companies' strategies.

Source quality

The article references statements from eBay and Etsy executives, which are credible sources given their direct involvement in the companies. However, the lack of external sources or industry expert opinions limits the depth of the analysis. The article would be strengthened by incorporating insights from independent analysts or financial experts to provide a more rounded perspective on the secondhand industry's challenges and strategies.

Transparency

The article provides a clear narrative about eBay and Etsy's performance and strategies but lacks transparency in sourcing specific data points, such as the exact figures for Depop's GMS. Additionally, it does not disclose the methodology for assessing the impact of tariffs on the secondhand industry. Greater transparency in these areas would enhance the reader's understanding of the basis for the claims made and the potential biases in the analysis.