Etsy Marketplace saw a 6% drop in Gross Merchandise Sales (GMS) in the third quarter, year over year, declining to $2.5 billion. Active buyers decreased 0.4 percent year-over-year to 91.2 million. And the number of “habitual buyers” was 6.8 million, down 4.8% year-over-year.
Etsy said consolidated GMS (including all of its marketplaces) was $2.9 billion, down 4.1% year-over-year and down 4.4% on a currency-neutral basis. Consolidated GMS performance includes a small headwind from the divestiture of Elo7.
Etsy said it has continued to see year-over-year gifting GMS trends outpace sitewide performance and represent a higher share of overall GMS than the same period last year.
Etsy CEO Josh Silverman was quoted in the earnings press release: “Our third quarter consolidated results came in roughly as anticipated, with some incremental pressure on Etsy marketplace year-over-year GMS, healthy growth in revenue, and continued strength in our adjusted EBITDA profitability. We made excellent progress improving Etsy marketplace customer experiences – from Gifting, to Quality, a new loyalty program, investing in our app, and more – all of which we believe will drive engagement and frequency over time. While 2024 has been a challenging period for discretionary goods, we are investing with discipline and focus to make Etsy even more Etsy – which we believe will lift our boat when the tide comes back in again.”
The full press release is on the Etsy Investor Relations website.
Etsy needs a new Captain of the boat!
No amount of flogging the sellers is going to increase sales in a marketplace that has lost buying power because of inflation.
*** Let’s do simple math ***
Many years ago when I opened my Etsy Artisan Jewelry shop, typical price points for jewelry averaged $150 bucks. Years later, Etsy opened the doors to asian and mid-east markets who sell products for $49 bucks.
So of course Etsy’s GMS is taking a nose-dive because U.S. and European Sellers with higher price points are dumping the platform.
And now, Etsy’s low income buyer is financially strapped, while the affluent buyer is looking through Etsy’s junkyard for quality products.
Yesterday, I posted 4 new jewelry pieces for $300+. They all sold within 8 hours. Within all categories, there is a real thirst for quality products that Etsy continues to ignore.
Etsy needs a new CEO with vision and the ambition to make Etsy truly unique.