With Etsy set to report earnings on Wednesday, people might be wondering if the company will reveal what effect, if any, the recent strike by sellers
had on sales or revenue.
There are a several reasons why Etsy is unlikely to provide the answer. The main reason: the company will report financials for the first three months of the year, but the strike took place in April.
Another reason: it seems unlikely the company would consider the strike to have had a material impact on its numbers. Over the course of eBay's history, it experienced similar boycotts, and we don't recall it ever characterizing any of them as having had an impact on its quarterly earnings.
That's not to say Etsy's CEO and its Chief Financial Officer won't address the strike at all, whether explicitly or implicitly. The strike got enormous media coverage, and executives may want to pivot the conversation by telling analysts it is "listening" to sellers, as it did on April 20th in a corporate blog post.
"To support our ever-growing community and help our sellers compete in an increasingly crowded ecommerce landscape, we must continue to invest in crucial areas, such as marketing, customer support, and preserving the integrity of our marketplace. Last week, we changed our transaction fee from 5% to 6.5%. While fee changes are never easy - especially for small business owners - this decision was based on a lot of careful thought and research, looking at the necessary investments to continue improving the experience for our customers (buyers and sellers).
"We've heard our community ask for more details on how this change will ultimately benefit our sellers. Today, we are providing additional context and updates on efforts already underway."
(Notice the wording - Etsy said the community wanted details on how the change would benefit sellers, but when it comes to the petition, that's not what sellers were calling for.)
The fee increase was the catalyst for a petition that called for sellers to strike. The petition protested the fee hike, but it also pointed to other issues sellers found problematic - including the Offsite Ad program and the Star Seller program. A check of the petition page
today shows over 85,000 signatures.
Etsy will likely report second-quarter earnings in August. By then, will the strike be a distant memory?