Etsy sets company record with $1.7bn annual revenue
American e-commerce website, Etsy had a huge 2020 in which it set a company record for revenue.
The e-commerce sector, in general, grew tremendously in 2020 as the pandemic forced people to completely alter their shopping habits.
As a result, Etsy crossed the billion-dollar revenue mark for the first time in company history after a staggering YoY increase. According to data presented by Buyshares, Etsy experienced a 110.75% YoY increase in revenue in 2020 after setting a company record $1.7bn in revenue.
Etsy More Than Doubled Its Revenue In 2020
Etsy was founded in June 2005 and has its headquarters in Brooklyn, New York. The site is an e-commerce platform that specializes in handmade or vintage products as well as crafts and DIY supplies.
In 2019, Etsy recorded 46.35 million active buyers on their site, a figure that grew by almost 77% in 2020 to 81.9 million. The number of sellers also grew by an impressive 61.7% YoY to 81.9 million in 2020.
The influx of new customers was a direct result of lockdowns that were imposed in many developed markets around the world, especially in its main country of operations, the USA.
As a result, Etsy dramatically increased its revenue in 2020 and crossed the milestone billion-dollar mark for the first time on its way to a company record, $1.7bn in revenue. This is just under a billion-dollar increase and an over 110% YoY increase from 2019.
Etsy also saw a dramatic increase in its gross merchandise sales (GMS) which is used by e-commerce sites to measure the dollar amount made from goods purchased on its site. Etsy’s GMS rose to $10.28bn in 2020 after experiencing a YoY increase of 106.7% from 2019. ETSY’s GMS also had an impressive five-year CAGR of 33.9% from 2015-2020.
Etsy’s Marketplace Segment Generates Over 75% Of Total Revenue
Etsy’s marketplace is what it is primarily known for and generates a large share of its total revenue. In 2020, Etsy’s marketplace earned $1.3bn in revenue amounting to 75.5% share of their total revenue. 2020’s marketplace revenue was also a 119.5% YoY increase from 2019. This gives Etsy’s marketplace an impressive CAGR of 44.85% from 2015-2020.
Revenue from its services segment amounted to $422m in 2020 which makes up the rest of its total revenue, an 88% YoY increase from 2019. A large part of the increase in the services segment is attributed to the growth of its on-site advertising revenue which experienced an 83.5% YoY increase in 2020.
More Than Half of Etsy’s Sales Come From Mobile Devices
Since 2017 Etsy has generated a majority of its revenue from purchases made from mobile devices after registering a 51% share for the year. In 2020, that share had risen to 61%.