Etsy grows active buyers by 18.7 million (41%) in Q2

By Chris Dawson August 6, 2020 - 10:05 am

Etsy have released their earnings for Q2 2020 and the stand out metric is their active buyers. Etsy saw an influx of 18.7 million new buyers and reactivated buyers (those who haven’t purchased in a year or more) boosting their total active buyers to 60.3 million. 11.5 million new buyers and 7.2 million reactivated buyers flocked to Etsy as the marketplace benefited from the pandemic lock downs around the world. Repeat active buyers grew 51% to 26 million.

New Sellers were up 100%, driven in part by mask sales, of which new sellers drove 23% of mask GMS. Etsy sellers continued to step up to meet unprecedented demand for face masks and sold more than 29 million masks, with nearly $350M in mask-related GMS and over 100k sellers with a mask sale. ‘Face mask’ was the #1 search on Etsy, with approximately 11 mask searches/second.

Non-mask sales were up 93% (accelerating from 79% in April). Etsy’s top 6 categories made up over 75% of their GMS. Notably, Home & Living was up 128% y/y as nesting trends continued and Craft Supplies was up 138% y/y as buyers got creative at home.

Etsy Financial Results

Total revenue was $428.7 million for the second quarter of 2020, up 136.7% year-over-year, driven by strong growth in both Marketplace and Services revenue.

Gross profit for the second quarter of 2020 was $317.4 million, up 159.1% year-over-year, and gross margin was 74.0%, up 640 basis points compared with 67.6% in the second quarter of 2019.

Guidance for Q3/Q4

Etsy’s challenge now will be to capitalise on the millions of new and activated buyers. As the world exits nationwide lockdowns and consumers return to work and school the thirst for online shopping will naturally be tempered but the opportunity for Etsy to consolidate growth is unprecedented. As Christmas comes around expect to see Etsy marketing heavily to turn new active buyers into regular shoppers.

Etsy guidance for Q3 2020 expects consolidated GMS in the range of $2.2-2.5B, ↑80% to 110%, Revenue of $366-426M, ↑85 to 115%, and adjusted EBITDA around $111-127M with a margin of 28-32%.

“Events of the last few months have driven dramatic shifts in consumer shopping habits, which we believe will increase the total available market opportunity for Etsy, particularly given our powerful, purpose-focused brand, the agility of our vibrant two-sided marketplace, and our unique competitive advantages. While we have limited visibility for the fourth quarter, particularly related to macro trends and consumer spending around Holiday, our third quarter guidance clearly indicates very strong overall performance for 2020. So far, we’ve seen our strong second quarter trends extend through July. We are choosing to take this opportunity to make significant investments today that we believe can continue to provide opportunities for growth in 2021 and beyond.”
– Josh Silverman, CEO, Etsy

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Featured in this article from the Tamebay Guide – companies that can help you grow and manage your business.


Etsy is well known and a major player in the handmade and vintage arena with a marketplace that offers curated collections and suggestions.

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