Etsy achieves record revenue of $1.7 billion, up 110.75% year-on-year

In 2020, the outbreak forced people to change their shopping habits, and the e-commerce industry as a whole grew tremendously. After experiencing an astonishing year-on-year growth, the US e-commerce website Etsy broke the $1 billion revenue mark for the first time. According to data provided by Buyshares.co.za , Etsy's revenue in 2020 increased by 110.75% year-on-year after setting a record of $1.7 billion in revenue for the company.

Etsy was founded in June 2005 and is headquartered in Brooklyn, New York. The website is an e-commerce platform that specializes in handmade or vintage products as well as handicrafts and DIY supplies. In 2019, Etsy had 46.35 million active buyers on its website, a number that grew by nearly 77% to 81.9 million in 2020. The number of sellers also grew by 61.7% year-on-year in 2020 to 81.9 million.

During the pandemic, many developed markets were blocked , and a large number of new customers flocked to Etsy, especially in the United States, its main business country . As a result, Etsy's revenue increased significantly in 2020 and broke the billion-dollar mark for the first time, reaching $1.7 billion, a company record and a year-on -year increase of more than 110% compared to 2019 .  

Etsy also saw a big increase in gross merchandise sales (GMS), which e-commerce sites use to measure the total amount of goods purchased on their sites .   Etsy's GMS rose to $10.28 billion in 2020 after experiencing year-over-year growth of 106.7% in 2019.  

The marketplace segment is what Etsy is best known for and accounts for a large portion of its total revenue. In 2020, Etsy's marketplace revenue was $1.3 billion, accounting for 75.5% of its total revenue. Marketplace revenue in 2020 also increased by 119.5% over 2019. This gave Etsy's marketplace a CAGR of 44.85% from 2015-2020.

In 2020, its services segment revenue reached $422 million, accounting for the rest of its total revenue, and increased 88% year-over-year from 2019. A large part of the growth in the services segment can be attributed to the growth of its on-site advertising revenue, which experienced 83.5% year-over-year growth in 2020.

More than half of Etsy's sales come from mobile devices. Since 2017, the majority of Etsy's revenue has come from purchases made from mobile devices, with a share of 51% that year. In 2020, that share has risen to 61%.

In recent years , the rapid growth of Etsy has also attracted the attention of Chinese sellers, and many Chinese sellers have flocked to Etsy . Authoritative organizations predict that during the period of 2020-2025, the global e-commerce market will expand by 1 trillion US dollars, and the development space of the e-commerce market is still huge.

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