$ETSY Etsy Inc Deep Dive and 2025 Outlook

The artisanal store is still struggling to get over the Covid highs

Etsy Inc. was founded in 2005 by Robert Kalin, Chris Maguire, and Haim Schoppik, with the mission to provide a platform for creative individuals to sell handmade or vintage items and craft supplies.

Etsy offers a diverse range of products, including handmade jewelry, clothing, furniture, art, craft supplies, and vintage items. The platform also includes categories like home decor, toys, and mobile accessories.

Etsy's technology supports a user-friendly marketplace where sellers can list items for a fee. The platform generates revenue from listing fees, transaction fees, and seller services like promoted listings and payment processing.

The platform targets a diverse customer base, often focusing on young upper-middle-class consumers who value craftsmanship and uniqueness. Etsy operates in a niche market for unique and creative goods, competing with broader e-commerce platforms like Amazon and eBay. Its strong mobile strategy and global reach have contributed to its success, making it one of the most visited online marketplaces worldwide.

The big questions for Etsy Inc and the stock in 2025?

1. How will fluctuations in consumer spending and overall economic health affect Etsy's Gross Merchandise Sales (GMS)?

2. Will Etsy be able to recover from its recent revenue miss and improve its gross merchandise sales?

3. How will Etsy maintain its competitive edge against larger e-commerce platforms like Amazon and eBay?

4. How will Etsy navigate global economic challenges and expand its international presence?