Etsy Inc

ETSY: XNAS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$759.00	Shyf	Scbwdxfb

Etsy's Strategic Progress Remains Masked by Challenging Consumption Spending Environment

Sean Dunlop

Aug 2, 2024

Business Strategy and Outlook

Etsy has carved out an interesting competitive niche, jockeying for e-commerce wallet share across a variety of categories in the long tail of unbranded products. The firm’s marketplace properties—Etsy, Reverb, and Depop—all target non-commoditized inventory, generate commissions on third-party, predominately peer to peer sales, and strive to create a “treasure hunt” experience around a unique, customizable, and consequently less price elastic products. The firm's core "Etsy" marketplace accounts for roughly 90% of consolidated gross merchandise volume, or GMV.

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