etsy-vs-ebay

Etsy vs. eBay

Both Etsy and eBay are two-sided marketplaces or platforms, business models. The interactions between buyers and sellers on the platforms enable them to generate revenues based on a take rate.

CommunityEtsyeBay
Active Buyers88.3M Buyers147M Buyers
Active Sellers5.3M Sellers17M Sellers
Revenue2021
eBay$1.75B
Etsy$10.4B
Gross Merchandise/Sales Volume2021
eBay$87.36B
Etsy$13.5B
Take Rates2021
eBay11.19%
Etsy17.26%

eBay Business Model

ebay-business-model
eBay’s core business is a platform business model that makes money from transaction fees through its marketplaces. In short, eBay primarily makes money by charging fees on successfully closed transactions. For instance, in 2021, on an $87 billion worth of gross merchandise value sold on eBay, the company generated $9.77 billion in transaction revenues at an 11.19% take rate (fee).

Etsy Business Model

etsy-business-model
Etsy is a two-sided marketplace for unique and creative goods. As a marketplace, it makes money via transaction fees on the items sold on the platform. Etsy’s key partner comprises sellers providing unique listings and a wide organic reach across several marketing channels. Etsy generated over $2.3 billion in revenues in 2021, it counts 88.3 million active buyers, and 5.3 million active sellers as of 2022. 

Read Next: eBay Business Model, Etsy Business Model, Etsy Marketing Strategy, Business Models.

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