Etsy, Inc
Etsy Inc. operates two-sided online marketplaces that connect creative sellers with buyers looking for unique, handmade, vintage, and resale goods. Its core business is the Etsy marketplace, supplemented by Depop, a fashion resale marketplace, with revenue generated mainly from transaction, payments, listing, advertising, and shipping-label services.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueCore two-sided marketplace for creative, handmade, vintage, and unique goods.
Transaction fees, payments processing, listing fees, and offsite advertising tied to marketplace activity.
Optional services such as Etsy Ads and shipping labels that help sellers drive traffic and fulfill orders.
Products
Reported · share of revenue- Marketplace Revenue69.6 %
- Services Revenue30.4 %
Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.
Customers
Etsy sells primarily to independent sellers and creative entrepreneurs who use the platform to reach buyers without building their own commerce infrastructure. Buyers are consumers seeking differentiated, personalized, or value-driven products, while Depop attracts fashion resale shoppers, especially younger users. The company also monetizes high-value repeat buyers and sellers through advertising, payments, and loyalty-oriented features.
Small businesses and individual creators who list unique goods and pay fees for marketplace access, payments, and optional services.
Consumers shopping for distinctive, personalized, or gift-oriented items that are hard to find on mass-market platforms.
Fashion-focused buyers and sellers using a peer-to-peer resale marketplace for secondhand apparel and accessories.
The most active users that generate a disproportionate share of GMS and are targeted with loyalty and retention features.
Strategy
Etsy is focused on improving discovery, relevance, and retention to increase purchase frequency and buyer spend. It is investing in app-first shopping, machine-learning search and recommendations, and personalized marketing so shoppers encounter the platform more often and return directly. The company is also using partnerships and AI-enabled discovery channels to extend reach while it concentrates capital on the Etsy marketplace after the planned Depop sale.
More shopper entry points can reduce reliance on direct traffic and improve top-of-funnel growth.
Better matching of intent to listings should lift conversion across a long-tail catalog.
Raising purchase frequency from infrequent buyers is a direct lever on GMS and monetization.
Divesting non-core assets can simplify the portfolio and redeploy capital to the main platform.
Geography
Q1/2026Etsy is a global marketplace business with buyers and sellers around the world, but the U.S. and U.K. are its largest markets. Management says penetration in the next 15 largest markets is much lower than in the U.S. and U.K., highlighting international growth potential. The business is exposed to regional differences in consumer discovery, payments, localization, and regulatory requirements.
Share of the revenue the company reports by geography.
Risks
Etsy’s results depend on traffic, buyer engagement, and seller supply, so changes in discovery algorithms, media costs, or consumer demand can quickly affect GMS and revenue. The company also faces execution risk from portfolio changes, especially the planned Depop sale, plus regulatory, tax, and competitive pressures across markets. Because monetization is tied to marketplace activity and advertising, any slowdown in buyer frequency or seller growth can pressure margins and cash generation.
- Volatile quarterly operating resultsImpact: HighLikelihood: Medium
Marketplace revenue and ad spend can move with traffic, conversion, and consumer demand.
Exposure - Competitive pressure from larger platformsImpact: HighLikelihood: Medium
Rivals may have more users, better data, and lower-cost media access, reducing Etsy's reach.
Exposure: Buyer acquisition and seller economics
- Depop transaction and integration/disposal riskImpact: MediumLikelihood: Medium
The pending sale may distract management and, if delayed or failed, create costs and uncertainty.
Exposure - Regulatory and tax compliance burdenImpact: MediumLikelihood: Medium
Marketplace facilitators face evolving reporting, remittance, and indirect tax obligations.
Exposure: Operating costs and compliance complexity
Accounting
Judgemental itemsDifferent fee streams move differently with GMS and ad pricing, affecting reported growth and take rate.
Impact: Revenue mix and margin analysis
The planned sale changes how Depop is presented in current and prior periods, affecting comparability.
Impact: Reported revenue, operating income, and cash flow presentation
Acquired businesses can require impairment testing when performance weakens or assumptions change.
Impact: Non-cash charges and asset values
Office and facility leases create right-of-use assets and liabilities based on estimates of term and discount rates.
Impact: Balance sheet leverage and expense timing
Marketplace and international operations create judgment around uncertain tax positions and remittances.
Impact: Tax expense and liabilities
Similar listed companies
Publicly listed companies with a comparable business focus.
eBay Inc
EBAY · Services-Business Services, NEC
Shopify Inc
SHOP · Services-Prepackaged Software
GoDaddy Inc.
GDDY · Services-Computer Integrated Systems Design
Getty Images Holdings, Inc.
GETY · Services-Business Services, NEC
Eventbrite, Inc.
Services-Computer Programming, Data Processing, Etc.
Pinterest, Inc
PINS · Services-Computer Programming, Data Processing, Etc.
Last updated: 24/09/2026