Like almost every sector in the business world, the second-hand industry is tackling the impact of President Donald Trump’s tariffs.
However, based on comments made by eBay and Etsy earlier this week, neither seems overly worried.
Companies recently reported revenue results for the first quarter 2025, both addressing the pressing topic of tariffs. eBay and Etsy are somewhat resilient, primarily due to the seller’s approach to sourcing products. In contrast to import-dependent rivals like Temu and Shein, they have recently raised prices in response to tariffs. Many eBay and Etsy sellers in the US mainly source their products locally and often sell second-hand, vintage or handmade items.
Companies provided data during revenue calls to demonstrate minimal exposure to tariffs.
“We’re looking forward to seeing you in the future,” said Jamie Iannone, CEO of eBay. [gross merchandise value] For us. And China is less than 10%. ”
Similarly, Etsy CFO Lanny Baker said: [gross merchandise sales] It comes from imported items purchased from Chinese sellers. ”
“Most of them are solo entrepreneurs working from home, with 90% of them source their supply domestically,” said Josh Silverman, CEO of Etsy.
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Having a seller using a local sourcing strategy can provide greater benefits than competitors like Temu, Shein, Amazon and more. However, second-hand businesses still need to address the challenges associated with ongoing economic uncertainty and consumer spending habits.
Etsy appears to be a bit vulnerable in this regard. Etsy’s core business model focuses on hand-crafted vintage products, which tend to be priced higher. So, Etsy sellers may not feel the impact of tariffs, but customers are still hesitant to spend, with active buyers down 3.4% year-on-year, bringing the total to 88.5 million. The number of habitual buyers fell by 11%, totaling 6.2 million.
Additionally, Etsy reported that 8.9% of the market’s total merchandise sales (GMS) fell to $2.3 billion.
On a positive note, Etsy continues to benefit from ownership of Depop, an indirect fashion platform that has gained popularity amid the looming recession. Since acquiring the depot in 2021, the platform has achieved record GM. The company did not disclose any specific numbers.
“Etsy has a strong track record of navigating turbulent macroeconomic conditions and is confident in its ability to continue adapting,” Silverman says.
By contrast, eBay is in a stronger position. The company says it accounts for more than 40% of its stock as more price-conscious shoppers are choosing used items. The company reported that eBay has gotten off to a solid start to the quarter as customers eager to avoid tariffs increased spending.
“We observed a trend in healthy volumes as it is a modest drawback in demand from consumers worried about the strength of the focus category and the increased costs and complexity at U.S. Customs in the near future,” said Steve Priest’s CFO at eBay.
The company’s total product volume (GMV) rose to $18.8 billion, but revenues rose by more than 1% to $2.58 billion.
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