Crafts and vintage marketplace Etsy has reported its quarterly results for Q3 and has shown significant growth and development. The positive results have been warmly greeted by Wall St and analysts and the stock price has enjoyed a boost.
Here are the main points of the
- Etsy’s total revenue increased 41.3% year over year, accelerating from 30.2% growth in the second quarter
- Marketplace revenue rose 29.7%, largely thanks to the new pricing introduced in July
- Gross merchandise sales volume increased 20.4% year on year
- Special revenue income from the likes of promoted listings, shipping labels, and Etsy Plus increased 42.2% year on year
You can find a full transcript with full details here. Saying of the results in the quarterly results conference call and explaining the company’s progress:
Two principal levers contributed to our progress this past quarter. The first is our continued product investment, focused on improving the shopping experience on Etsy. By making it easier to find and buy the great products available for sale on Etsy, we’re doing a better job converting visits into purchases. The second lever was our new pricing structure, which enabled us to ramp up investments in marketing, shipping improvements and customer support.
– Josh Silverman, CEO, Etsy (Pictured above.)
There is no doubt that the new pricing structure that was introduced on Etsy over the course of the summer, which increased merchant costs in general and also included shipping into the total cost making it liable to fees as well, has had a most beneficial impact on the marketplace earnings. But it has attracted the ire of sellers too because the new fees make selling more expensive.
But that was just one aspect of a raft of changes that have been coming online as the reinvention of the marketplace continues apace under the stewardship of Silverman. It seems fair to predict that more changes will materialise in due course.