61 million new users, GMS reaches 10.3 billion US dollars, Etsy North America is about to explode!

61 million new users, GMS reaches 10.3 billion US dollars, Etsy North America is about to explode!

Etsy recently announced its Q4 sales results, with its fourth-quarter total merchandise sales increasing to $3.6 billion, up nearly 118% year-on-year . Platform revenue increased 129% to $617 million. Net income increased 374.7% to $148.5 million.

 

Masks drove Q4 sales up 4% , as the "mask boom" gave the platform an opportunity to develop at the beginning of the epidemic . Etsy said that GMS excluding masks increased 118% to $3.3 billion.

 

At the same time, the number of active buyers on the platform increased by 76.7% year-on-year to 81.9 million . Etsy added twice as many new buyers in 2020 as in 2019 .

 

Etsy also released other data: the platform's full-year GMS reached US$10.3 billion , a year-on-year increase of 107%, revenue increased by 111% to US$1.7 billion, and net income increased by 264.2% to US$349.2 million.

 

According to Etsy’s latest report, the surge in demand for masks in 2020 attracted 61 million new users to Etsy , while the number of “habitual buyers” on its platform increased by nearly 160% .

 

Etsy CEO Silverman pointed out that the outbreak of demand for masks has allowed many consumers to come into contact with Etsy's products for the first time, and many consumers have increased their purchase frequency on Etsy, driving sales of other products. The growth of "habitual buyers" points the way for Etsy's future success, ensuring that its recent hot-selling categories will continue after the epidemic .

 

Etsy said that in addition to masks, household items, furniture accessories and wedding-related products have performed strongly in recent times.

 

In response, Etsy said it would better optimize its search function to create a search experience for other types of buyers that habitual buyers already have.

 

However, Etsy's development has not been smooth sailing. Before 2020, Etsy had been silent for a long time.

 

Etsy was originally an American website that sold handmade crafts online . After attracting a lot of attention and investment, it decided to go public in 2015. However, going public requires the Etsy platform to change - it cannot be limited to the source of sellers.

 

Therefore, Etsy is in trouble: it needs to invite more sellers to join , but it will lose the foundation of the platform - the handmade retro style, and it will also face the continuous loss of growth opportunities.

 

But six years later, Etsy decided to end its choice of overexpanding its seller base and instead invest in capturing market information , a move that brought Etsy back from the dead.

 

The best example might be the gloves worn by Sen. Bernie Sanders at President Joe Biden’s inauguration, as they sparked countless memes across the internet in the days that followed, while sales of the gloves and related items on Etsy reached $1.9 million.

 

Aside from local shops, hobby and art supply retailers, and Etsy , few retailers have benefited from the arts and crafts explosion .

 

When it comes to choosing these products, many North American consumers seem to have a particular preference for local and small businesses , and the pandemic has created a gap in sentiment and habits. Before the outbreak, these businesses were already vulnerable to competition from giants such as Amazon, Walmart and Target , and after the outbreak, this gap has become more obvious.

 

Silverman said that differentiation will be a focus this year .

 

Demand for masks and household goods that have become popular this year appears to be waning as vaccines roll out and the pandemic eases in some places. But demand will continue to some extent for a while, and Etsy will continue to benefit, according to a report from Jane Hali & Associates.

 

The report points out that Etsy 's growing product categories are strong and unique. The platform has major categories that consumers are interested in, including home, toys and entertainment, craft supplies, pets and beauty , and some Etsy sellers also offer product customization. The report predicts that the home category will remain key for Etsy as consumers seek unique furniture and decorations .

 

However, Etsy did not limit the platform to this because of the temporary mask opportunity. During the epidemic, Etsy made many policy changes to improve the user experience of the platform, which increased the stickiness of buyers and sellers to the platform.

 

Currently, Etsy has more than 100,000 sellers around the world opening stores on it. Etsy's mission is to connect buyers and sellers, enable them to complete online transactions , build a new economy through the buying and selling market, and provide users with better choices.


Etsy

North America

GMS

E-commerce platform

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