The secondhand retail sector is currently steering through the challenges posed by tariffs introduced under the Trump administration, yet leading platforms eBay and Etsy have demonstrated notable resilience. Their recent first-quarter 2025 financial reports reveal how strategic sourcing and business models have helped them weather these pressures better than many competitors.
Unlike import-heavy rivals such as Temu and Shein, which have raised prices due to tariff-related costs, many sellers on eBay and Etsy primarily source their products domestically within the United States. These items are often pre-owned, vintage, or handcrafted, significantly reducing exposure to tariffs on imported goods.
During earnings calls, eBay CEO Jamie Iannone said, “Our greater China to U.S. quarter makes up about 5% of total [gross merchandise value] for us. And China overall is a little less than 10%.”
Similarly, Etsy CFO Lanny Baker noted, “At present, Etsy’s direct tariff exposure appears to be relatively low given that just over 1% of [gross merchandise sales] comes from U.S. imports of items purchased from sellers in China.”
“Most are solo entrepreneurs working from their home with 90% sourcing their supplies domestically,” Etsy CEO Josh Silverman added.
Despite this advantage, both companies face headwinds from economic uncertainty and cautious consumer spending. Etsy, which focuses on higher-priced handcrafted and vintage goods, reported a 3.4% year-on-year decline in active buyers to 88.5 million, alongside an 11% drop in habitual buyers to 6.2 million.
Gross merchandise sales on Etsy’s marketplace fell 8.9% to $2.3 billion. However, Etsy’s ownership of Depop, a popular secondhand fashion platform, continues to drive growth with record-high gross merchandise sales since its 2021 acquisition.
Silverman expressed confidence, saying, “Etsy has a strong track record of navigating turbulent macroeconomic conditions, and we’re confident in our ability to keep adapting.”
In contrast, eBay has benefited from increased demand among price-conscious shoppers seeking used and refurbished products, which now represent over 40% of its inventory. The company’s gross merchandise volume rose to $18.8 billion, with revenue increasing slightly to $2.58 billion.
“We have observed healthy volume trends due to strength in our focus categories and what could be a modest pull forward of demand from consumers worried about increased costs and complexity at U.S. customs in the near future,” CFO Steve Priest stated.
The current industry offers both challenges and opportunities for smaller secondhand sellers. Those who prioritise local sourcing are better insulated from tariff impacts, while embracing digital tools and social commerce can help increase visibility and customer engagement. Price sensitivity among consumers means sellers must carefully balance pricing and value propositions, often highlighting sustainability and uniqueness to attract buyers.
Globally, the resale market is buoyed by growing environmental awareness, with consumers increasingly favouring secondhand goods over fast fashion. While tariffs complicate cross-border trade, innovations in logistics and supply chain transparency are helping to ease these barriers. Additionally, niche marketplaces focusing on specific product categories and social media integration are expanding opportunities for sellers worldwide.
Economic uncertainty is further accelerating the shift towards resale, as shoppers seek greater value and sustainability. Platforms like eBay and Etsy, with their technology-driven approaches and diverse seller bases, are well-positioned to capitalise on these trends.