Etsy Sales Down 4% (Nearly Flat, FX-Neutral) in 4th Quarter 2022

Etsy sales from all of its marketplaces were down 4% in the fourth quarter year-over-year (or down 0.7% FX-neutral). Consolidated revenue was up 12.6% year-over-year, with take rate (i.e., consolidated revenue divided by consolidated GMS) increasing to 20%.

Etsy owns several marketplaces including Reverb and Depop, the following also includes sales from all of them (“consolidated”):

In the fourth quarter, consolidated GMS was $4.0 billion (down 4% YoY; down 0.7% on a currency neutral basis), and revenue climbed to a record $807 million (up 12.6% YoY).

Full year consolidated GMS came in at $13.3 billion (down 1.3% YoY) and revenue of $2.6 billion (up 10.2% YoY). Of that, $11.8 billion came from the Etsy.com marketplace.

Etsy, Inc.’s total community includes 95.1 million active buyers, shopping from 7.5 million active sellers around the world as of December 31, 2022.

Of that, Etsy.com ended the year with 5.4 million active sellers and 89.4 million active buyers.

Etsy CEO Josh Silverman noted, “Despite significant macroeconomic headwinds, we maintained the vast majority of our pandemic gains and delivered double digit revenue growth and excellent profitability for the year. We believe our strong and steady performance proves the relevancy of our Right to Win strategy, the focus and investment discipline of our teams, and the resiliency of our business model. Etsy truly stands for something different.”

Some highlights of interest to sellers (Etsy marketplace only) include the following:

• Etsy added 9.5 million new buyers in Q4 and reactivated 24 million buyers who lapsed over the prior 12 months. That’s the most ever reactivated in one year (up 24% YoY, up 87% Y/3Y).
• GMS from transactions where either a buyer or seller or both were outside of the U.S. represented 45% of overall GMS, and increased 5% year-over-year on a currency-neutral basis.
• Resolution times for customer issues dropped “materially” thanks to the Etsy Purchase Protection Program.

See the 4th quarter press release on the Etsy.com website.

Ina Steiner

Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). She is a member of the Online News Association (Sep 2005 - present) and Investigative Reporters and Editors (Mar 2006 - present). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com. See disclosure at EcommerceBytes.com/disclosure/.