The secondary industry, like virtually every other sector in the business world, is currently contending with the consequences of President Donald Trump’s tariffs.
Nevertheless, eBay and Etsy’s comments from earlier this week suggest that they are not unduly concerned.

The companies recently disclosed their earnings results for the first quarter of 2025, and both of them addressed the pressing issue of tariffs. eBay and Etsy are somewhat resilient, primarily as a result of the methods used by their vendors to source products.

Many eBay and Etsy vendors in the United States primarily source their products locally, often selling used, vintage, or handcrafted items, in contrast to import-reliant competitors like Temu and Shein, which recently raised prices in response to tariffs.

During their earnings calls, the companies presented data to illustrate their minimal exposure to tariffs.

“Our greater China to U.S. quarter accounts for approximately 5% of our total [gross merchandise value,” stated Jamie Iannone, CEO of eBay. Additionally, China’s aggregate percentage is slightly less than 10%.

Similarly, Lanny Baker, Etsy’s Chief Financial Officer, stated, “At present, Etsy’s direct tariff exposure appears to be relatively low, as just over 1% of [gross merchandise sales] are derived from U.S. imports of items purchased from sellers in China.”

Josh Silverman, Etsy’s CEO, further stated, “The majority of solo entrepreneurs operate from their homes, with 90% of their supplies sourced domestically.”

A substantial advantage over competitors such as Temu, Shein, and Amazon can be achieved by having vendors who employ local procurement strategies.

Nevertheless, secondhand companies continue to confront the obstacles associated with the persistent economic uncertainty and consumer spending habits.

Etsy appears to be marginally more susceptible to this. Etsy’s fundamental business model emphasizes the sale of handcrafted and vintage items, which are typically priced at a premium.

Therefore, despite the fact that Etsy merchants may not be affected by tariffs, consumers are still hesitant to spend, resulting in a 3.4% year-over-year decrease in active purchasers, bringing the total to 88.5 million. The total number of habitual purchasers decreased by 11%, reaching 6.2 million.

Furthermore, Etsy disclosed an 8.9% decrease in gross merchandise sales (GMS) for the marketplace, which amounted to $2.3 billion.

Despite the impending recession, Etsy continues to reap the rewards of its ownership of Depop, a secondhand fashion platform that remains in high demand.
The platform has attained a record-high GMS since acquiring Depop in 2021. The company refrained from providing specific figures.

Silverman stated, “Etsy has a proven history of successfully adapting to challenging macroeconomic conditions, and we are confident in our capacity to continue doing so.”

Conversely, eBay is in a more advantageous position due to the fact that a greater number of price-conscious consumers are opting for used and refurbished products, which account for more than 40% of its inventory, according to the company.

eBay has had a strong start to the quarter as a result of the increased spending of consumers who are anxious to avoid tariffs, according to the company.

eBay’s Chief Financial Officer, Steve Priest, stated, “We have observed healthy volume trends as a result of the strength in our focus categories and what could be a modest pull forward of demand from consumers who are concerned about the increased costs and complexity at U.S. customs in the near future.”

The company’s revenue increased by over 1% to $2.58 billion, while its gross merchandise volume (GMV) increased to $18.8 billion.