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The secondhand industry, much like other sectors, is feeling the effects of President Donald Trump’s tariffs. However, companies like eBay and Etsy seem to be handling the situation well. Despite the challenges, these companies have reported resilience in their Q1 2025 earnings results.
Local Sourcing Strategies Provide Advantage
eBay and Etsy sellers in the U.S. mainly rely on local sourcing for their products, giving them an edge over import-reliant competitors. eBay’s CEO mentioned that only a small percentage of their gross merchandise value comes from China, and Etsy’s CFO also stated that their direct tariff exposure is minimal.
Challenges for Etsy and eBay
While eBay seems to be in a stronger position due to the increase in demand for used and refurbished goods, Etsy faces some challenges. The platform, known for handcrafted and vintage goods, has seen a decline in active buyers and gross merchandise sales. However, their ownership of Depop, a popular secondhand fashion platform, has been a bright spot for the company.
Looking Ahead
Despite the economic uncertainty, both eBay and Etsy remain confident in their ability to adapt. eBay has observed healthy volume trends, with customers avoiding tariffs by choosing used goods. On the other hand, Etsy continues to navigate the challenges, banking on its unique business model and successful ventures like Depop.
