The companies recently reported Q1 2025 earnings results, both addressing the pressing topic of tariffs. eBay and Etsy are resilient to an extent, largely due to their sellers' approaches to sourcing products. In contrast to import-reliant rivals like Temu and Shein, which recently raised prices in response to tariffs, many eBay and Etsy sellers in the U.S. mainly source their products locally, often selling used, vintage, or handmade items. Similarly, Etsy's CFO, Lanny Baker, said, '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.' Having sellers with local sourcing strategies can provide a significant advantage over competitors like Temu, Shein, and Amazon. However, secondhand companies still have to deal with the challenges that come with the ongoing economic uncertainty and consumer spending habits. Etsy appears to be slightly more...
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