Etsy
Marketplace for handmade goods with seller advertising monetisation.
Available information varies by company and source.
Profile record updated:
Company facts
- Official name
- Etsy, Inc.
- Entity type
- COMPANY
- Founded
- 2005
- Headquarters
- 55 Washington Street Suite 512, Brooklyn, NY 11201
- Company size
- 1,001–5,000
- Market role
- Retailer & Marketplace
- Ticker
- ETSY
- Official website
- etsy.com
What Etsy does
Etsy operates a two-sided marketplace business model. It aggregates buyer demand for unique goods and supplies sellers with the tools, audience access and transaction infrastructure needed to run shops on the platform. Value is created by matching niche consumer intent with long-tail merchant supply, while Etsy captures revenue from seller activity, transaction flow and paid visibility within the marketplace.
Category differentiation
Etsy is not a standalone merchant shop builder like Shopify and not a generalist marketplace like Amazon. It is a two-sided marketplace focused on distinctive goods while also operating an internal seller advertising product.
Strategic context
AI-supported assessment from the existing company research; distinguish interpretation from sourced facts.
Etsy is a US-based public e-commerce marketplace operator that connects independent sellers with buyers seeking handmade, vintage and other distinctive goods. Its core business is the Etsy Marketplace, which provides seller storefronts, product discovery, checkout, payments and order workflows across web and mobile. The company serves both consumers and a large base of independent merchants, artisans and small businesses. Etsy generates revenue primarily through marketplace take-rates charged to sellers, including listing, transaction and payments-related fees, and through advertising products sold to merchants within its marketplace. Its self-serve Etsy Ads product adds a second monetisation layer by allowing sellers to buy sponsored placement inside Etsy search and browse surfaces, making the business a blend of marketplace operator and retail media platform.
Company news briefing
Briefing updated:
Following its workforce reduction and the completed divestiture of Depop, Etsy continues to integrate its platform into emerging agentic commerce and creator channels. The company is actively participating in the Universal Commerce Protocol alongside Shopify and Google to support browser-based AI agents, while also being integrated into Meta's Hatch agent platform and expanding its footprint within YouTube's European shopping affiliate programme.
Business model & monetisation
Etsy monetises through a blended marketplace and advertising model. Core marketplace revenue comes from seller-side listing fees, transaction commissions and payment processing fees tied to GMV. Additional monetisation comes from seller marketing products, especially Etsy Ads, which uses a cost-per-click pricing model for sponsored listings. The input also indicates subscription-style upgrades such as Etsy Plus, giving Etsy a secondary SaaS-like revenue stream alongside transaction-based take-rates and performance advertising.
- Marketplace seller fees
- Percentage Take-Rate
- Payments-related fees
- Percentage Take-Rate
- On-platform seller advertising
- Ad-Supported
- Seller subscriptions and premium tools
- Software Subscription
Products & capabilities
No products with linked sources are available in this view.
Products & market categories
Ad Format
Media Channel
Competitors & alternatives
- noon
Middle East e-commerce marketplace with integrated retail media.
- Magalu
Brazilian commerce platform combining retail, marketplace and retail media.
- StockX
Authenticated resale marketplace for limited-edition consumer goods.
- eBay
Marketplace for auctions, fixed-price commerce and seller advertising.
Side-by-side comparisons
Subsidiaries & acquisitions
- Depop
Social resale marketplace for secondhand fashion buyers and sellers.
Recent recorded signals
Dates refer to the source publication. Older entries are historical context, not evidence of a new event.
Shopify Opens Checkout to Browser-Based AI Agents
Agentic Commerce · Recorded impact score: 4/5
Shopify has extended its WebMCP support to the checkout process, enabling browser-based AI agents to complete purchases on merchant sites, including via Shop Pay. This extension is part of the Universal Commerce Protocol (UCP) developed with Google, Etsy, Wayfair, and Walmart. Three new tools—get_checkout, update_checkout, and complete_checkout—allow agents to inspect, update, and finalize orders, with buyer authorization required. Existing customizations, business rules, and security checks remain intact. In benchmarks, WebMCP reduced average time per attempt from 27.4 to 10.3 seconds, cut costs by 58%, and achieved a 100% success rate (60/60) compared to 56/60 for traditional browser automation. Rolling out to all eligible merchants, Shopify positions itself as open infrastructure for agentic commerce, partnering directly with top agents like Muse and Instinct, in contrast to retailers like Amazon and Adidas that block AI agents.
- Shopify extends WebMCP support to checkout, including Shop Pay, for browser-based AI agents.
- Three new tools: get_checkout, update_checkout, and complete_checkout.
Etsy to Cut 12% of Workforce After Q2 Results
Financials · Recorded impact score: 4/5
Etsy announced a reorganization cutting about 220 roles (≈12% of staff) to simplify structure, flatten teams, speed decision‑making and position the company for growth rather than as a pure cost‑cutting exercise. Management said it will continue investing in AI/ML for recommendations, search and digital assistants; CEO Kruti Patel Goyal noted the reductions were not driven by AI even as AI changes how work is done. The cuts—mainly in product and engineering—leave roughly 1,600 employees and carry about $35 million of restructuring costs, mostly severance and benefits. The move accompanied Q2 results: revenue of $668.3 million (up just over 6% excluding Depop), marketplace sales growth ~9.3%, and a net loss of about $46.7 million. Etsy has sold Depop to eBay and is refocusing on its core marketplace, including a beta app in ChatGPT.
- Etsy will cut about 220 roles, roughly 12% of its workforce; about 1,600 employees are expected to remain.
- Etsy expects approximately $35 million of restructuring costs, primarily severance and benefits.
eBay Completes Acquisition of Depop
M&A · Recorded impact score: 4/5
eBay has completed its acquisition of the secondhand fashion marketplace Depop from Etsy, strengthening eBay's position in the growing recommerce market. Depop — popular with Gen Z and younger millennials for vintage, streetwear and sustainable fashion — will remain largely independent while leveraging eBay's infrastructure, logistics and personalization capabilities. The move expands eBay's fashion portfolio and access to a younger, community-driven user base, supporting growth in C2C secondhand trading and circular-economy positioning. The article was published by Retail-News on 2026-07-30.
- eBay has officially completed the acquisition of the secondhand platform Depop from Etsy.
- The article was published on 2026-07-30 by Retail-News.
Former Depop, Etsy Leader Launches VKNG Digital Agency
Agency & Consultancy · Recorded impact score: 1/5
VKNG Digital, a specialist search marketing agency, launched on July 13, 2026 to provide SEO and PPC services to small and medium-sized businesses across Lancashire. The agency was founded by digital marketing specialist Dave Anderson, who brings nearly 20 years of experience and previously held senior roles at Depop, Etsy, Missguided and Simply Be and worked agency-side with MediaCom, CandidSky and Gorilla Marketing. VKNG Digital positions enterprise-level search marketing strategy as accessible to regional SMEs, delivering work directly by an experienced practitioner and targeting sectors including ecommerce, professional services, manufacturing, hospitality and property. The agency is based in Lancashire and serves towns including Burnley, Preston, Chorley, Lancaster, Clitheroe, Ormskirk, Rossendale and the Fylde Coast.
- VKNG Digital launched as a specialist search marketing (SEO and PPC) agency focused on Lancashire SMEs.
- The agency was founded by Dave Anderson, a digital marketing specialist with close to two decades of experience.
Explore company relationships
Questions about Etsy
What is Etsy?
Etsy is a public online marketplace that connects independent sellers with buyers looking for handmade, vintage and unique goods.
Who uses Etsy?
Consumers use Etsy to discover and buy distinctive products, while independent sellers and small businesses use it to run shops and promote listings.
How does Etsy make money?
Etsy makes money from seller listing and transaction fees, payments-related charges, on-platform advertising such as Etsy Ads, and some subscription-style seller tools.
Sources & coverage
This profile uses public, official and technically observable information. Missing information does not prove that a product or relationship does not exist. The list below does not imply that every profile statement has been verified.
16 publicly documented primary sources and citations linked across the market graph.
Continue your research on Etsy
Explorer includes additional company details, a Watchlist for up to 25 companies and your personal Strategic Intelligence Agent. It monitors your market daily and delivers tailored briefings with clear strategic context whenever relevant news occurs.
Free, with no time limit.