How Much Does Etsy Take? Etsy's Take Rate Analysis

In 2021, Etsy’s take rate was 17.26%. It means that on each sale that happened through the platform, Etsy was able to retain over 17%. Indeed, on a total Gross Sales Volume of $13.5 billion in 2021, Etsy generated over $2.3 billion in revenues.

Year	Take Rate
2019	16.4%
2020	16.8%
2021	17.26%

	Etsy’s Accelerating Funnel
Active Buyers	88.3M
Repeat Buyers	35.5M
Habitual Buyers	7.6M

Table of Contents

Ket Highlights

Etsy’s Take Rate:
- In 2021, Etsy’s take rate, which represents the percentage of each sale that Etsy retains, was 17.26%.
- This indicates that Etsy was able to retain over 17% of the value of each transaction that occurred on its platform.
Revenue Generation:
- Based on the take rate of 17.26%, Etsy generated significant revenue from its platform.
- With a total Gross Sales Volume of $13.5 billion in 2021, Etsy’s revenue amounted to over $2.3 billion.
User Engagement Funnel:
- Etsy’s user engagement funnel reflects the progression of user activity on the platform.
- The platform had 88.3 million active buyers in 2021, representing the total number of individuals making purchases.
- Among these buyers, there were 35.5 million repeat buyers who engaged with the platform more than once.
- Additionally, Etsy had 7.6 million habitual buyers, indicating users who regularly and consistently made purchases on the platform.
Yearly Take Rate Trends:
- Over the years, Etsy’s take rate has shown an upward trend:
  - In 2019, the take rate was 16.4%.
  - In 2020, it increased to 16.8%.
  - In 2021, it further rose to 17.26%.

Etsy’s marketing strategy explained.

etsy-marketing-strategy — In 2022, Etsy had 88.3 million active buyers, over 35 million repeat buyers, and 7.6 million habitual buyers. Etsy’s funnel is skewed toward enabling active buyers to become habitual buyers, which is critical for long-term sustained growth in a two-sided digital marketplace.

Building a long-lasting advantage for a digital platform requires a company to combine product/engineering, marketing, and distribution to enhance a growth funnel.

In the case of Etsy, its funnel is focused on ensuring that sellers list unique items on the platform while buyers become repeat first, then habitual buyers.

This is the Etsy marketing strategy in a nutshell.

Etsy business model explained

For that matter, Etsy’s business model is focused on the two sides of its network, sellers to list unique items and buyers to transition from first-time to habitual buyers.

That is where technology, marketing, and distribution come together.

To enable a customized journey for users to be prompted to purchase continuously to Etsy while providing enhanced trust through the platform.