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Etsy doubles revenue in 2020, with half of sales now on mobile

Etsy: tapping into the DIY and ecommerce boom on mobile

Marketplace Etsy had a huge 2020 in which it set a company record for revenue. Driven by the pandemic, it crossed the billion-dollar revenue mark for the first time in its history after a YoY increase of 110.75% in revenue in 2020 hitting $1.7bn in revenue.

Since 2017 Etsy has generated a majority of its revenue from purchases made from mobile devices after registering a 51% share for the year. In 2020, that share had risen to 61%.

Etsy, founded in June 2005 and has its headquarters in Brooklyn, New York and which specialises in handmade or vintage products as well as crafts and DIY supplies, recorded 46.35m active buyers on their site in 2019, a figure that grew by almost 77% in 2020 to 81.9m. The number of sellers also grew by an impressive 61.7% YoY to 81.9m in 2020.

The influx of new customers was a direct result of lockdowns that were imposed in many developed markets around the world, especially in its main country of operations, the USA. As a result, Etsy dramatically increased its revenue in 2020 and crossed the milestone billion-dollar mark for the first time on its way to a company record, $1.7B in revenue. This is just under a billion-dollar increase and an over 110% YoY increase from 2019.

Etsy also saw a dramatic increase in its gross merchandise sales (GMS) which is used by e-commerce sites to measure the dollar amount made from goods purchased on its site. Etsy’s GMS rose to $10.28B in 2020 after experiencing a YoY increase of 106.7% from 2019. ETSY’s GMS also had an impressive 5-year CAGR of 33.9% from 2015-2020.

Etsy’s marketplace is what it is primarily known for and generates a large share of its total revenue. In 2020, Etsy’s marketplace earned $1.3bn in revenue amounting to 75.5% share of their total revenue. 2020’s marketplace revenue was also a 119.5% YoY increase from 2019. This gives Etsy’s marketplace an impressive CAGR of 44.85% from 2015-2020.

Revenue from its services segment amounted to $422m in 2020 which makes up the rest of its total revenue, an 88% YoY increase from 2019. A large part of the increase in the services segment is attributed to the growth of its on-site advertising revenue which experienced an 83.5% YoY increase in 2020.

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