Etsy (NASDAQ:ETSY), an e-commerce service provider for artisans, craft suppliers, and vintage-goods sellers, has around 7.5 million active sellers and 96 million active buyers.

In June last year, Etsy acquired resale fashion marketplace Depop, in which the retailer initially witnessed a decline in sales in the third quarter of 2021.  

However, Needham analyst Ann Andreeva noticed a surge in Depop products in the UK in the fourth quarter of 2021 in her recent research. More importantly, the UK contributes around 40% of Depop sales with strong brand awareness in the region.

Furthermore, compared with the same period in 2020, Etsy grew gross merchandise sales (GMS) by 39% in the first nine months of 2021, delivering pretty good results for shareholders.  

Another notable acquisition for Etsy last year was Elo7 (“Etsy of Brazil”) which increased the company’s expenses, absorbed higher general and administrative costs and, witnessed Etsy spending more on digital marketing.   

Nonetheless, the move into Brazil and an increased interest in the developing world point to a substantial addressable market.



The slowing E-commerce sales growth due to the ease of global lockdowns and the tech sell-off since November has placed immense pressure on Etsy stock.  

Shares of Etsy increased by 23% on the year but fell 15% in the first week of 2022 to nearly 40% below their all-time high in November. 

Despite these challenges, TipRanks’ website traffic tool has seen an increase in traffic from unique visitors to Etsy’s overall website and although Etsy maintains heavy investing in its expansion, the company continues revenue growth at a double-digit percentage pace while being highly profitable.  

The company further benefits from loyal Etsy shoppers that enjoy discovering unique and handcrafted items on the site, supporting small, and often local, businesses.

This leads to a robust e-commerce business that will allow small investors who buy Etsy stock and hold for long-term investment to see massive returns over time.

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