Skip to main content
No. of Recommendations: 11
Etsy may not have recurring revenue, but it has a huge assortment of products that cater to all types of wants/needs and it's only getting bigger as they attract more sellers (Up 40%+ YoY)

As someone noted, their repeat / habitual buyers have grown a ton, 70% YoY for 2+ purchases in the TTM and 104% YoY for 6+ purchases. GMS per active buyer is also increasing, 8.2% YoY in the most recent quarter and 10% YoY in a 2-year growth cohort.

Also, it looks like less than 25% of their active buyers are new/reactivated, meaning the majority of their revenue come from "recurring customers." It might not be recurring revenue like a SaaS business, but it might be a recurring destination.

Plus Etsy Ads could theoretically be considered recurring revenue as it serves a function for sellers to promote their products. As Etsy gains more scale, services will continue to increase when more buyers adopt Etsy Ads and Ads make up about 25% of Etsy's total revenue now.

COVID has brought a tremendous amount of awareness to Etsy and while it's obviously going to slow down once COVID is over, Etsy has and will continue to take more market share from other websites that sell similar assortments. In many ways, Etsy is becoming more and more like an "Everything Store" which is what Amazon is. Plus, their < $20 B market cap is great as there is tons of room to grow and their multiple is significantly lower than other major ecommerce players which means room for multiple expansion.
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.