ETSY - Etsy Is at Risk of Becoming the Next eBay
2023-12-18 07:45:00 ET
Online auction site eBay (NASDAQ: EBAY) was one of the earliest e-commerce players, founded in 1995. eBay grew rapidly for years, but its fortunes eventually diverged from the rest of the e-commerce industry. While Amazon continued to rack up ever-increasing sales, eBay's revenue has barely budged since the company spun off PayPal in 2015.
eBay is a profitable company, but less merchandise is moving through its platform today compared to 2015. In the third quarter of this year, eBay's gross merchandise volume totaled $18 billion. In the third quarter of 2015, that metric was $19.6 billion. eBay has grown revenue by bumping up fees, but that strategy can only take you so far.
Etsy (NASDAQ: ETSY) finds itself in a similar boat. The handmade and bespoke marketplace grew by leaps and bounds during the pandemic, but growth has now stalled. Gross merchandise sales through Etsy's various marketplaces were $3 billion in the third quarter of this year , down from $3.1 billion in the third quarter of 2021.
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Etsy Is at Risk of Becoming the Next eBay