Ecommerce platforms Etsy and eBay reported minimal exposure to tariffs during their Q1 2025 earnings calls. They attribute this resilience to their sellers’ local sourcing strategies.

EBay CEO Jamie Iannone noted that goods imported from China represent only 5% of the company’s gross merchandise value (GMV). Overall transactions involving China account for less than 10%.

Similarly, Etsy CFO Lanny Baker said that imports from China constitute just over 1% of the company’s gross merchandise sales (GMS).

🔗 Source: TechCrunch

🧠 Food for thought

1️⃣ Secondhand platforms benefit from diversified sourcing strategies during trade tensions

The resilience of eBay and Etsy during tariff increases highlights the strategic advantage of platforms with locally-sourced inventory.

eBay’s exposure to Chinese imports is limited, with only 5% of their gross merchandise value coming from Greater China to the US, and China overall accounting for less than 10% of total business1.

Similarly, Etsy maintains minimal tariff vulnerability with just over 1% of gross merchandise sales coming from US imports of items purchased from Chinese sellers1.

This contrasts sharply with platforms like Temu and Shein, which rely heavily on Chinese manufacturing and have already raised prices in response to tariffs.

This diversified sourcing approach provides a competitive buffer that import-dependent retailers simply cannot match during periods of trade tension.

2️⃣ Economic uncertainty drives consumer shift toward secondhand marketplaces

The current economic climate is creating a perfect environment for secondhand platforms as consumers seek more affordable options.

Recent data shows that 75% of consumers are trading down in their purchases, opting for lower-priced brands and private labels as inflation concerns persist2.

This behavior directly benefits platforms like eBay, where over 40% of inventory consists of used and refurbished goods that appeal to increasingly price-conscious shoppers1.

Historical patterns support this trend, as the global secondhand clothing trade grew by 106% from 2006 to 2016 (reaching $3.7 billion), significantly outpacing the growth rate of new clothing during economic uncertainty following the 2008 financial crisis3.