Photo by Kelly Sikkema on Unsplash

Etsy surpassed market estimates for quarterly sales on Wednesday, thanks to increased demand for products like personalized gifts sold on its e-commerce platform and higher transaction fees, sending the company’s stock up roughly 2% in extended trading.

According to Reuters, after a pandemic-driven rise in growth when consumers bought cloth masks and craft supplies from the comfort of their homes, Etsy – a platform for sellers of vintage or homemade goods – has maintained its popularity among cost-conscious shoppers.

Marketplace revenue climbed by more than 9%, mainly owing to an increase in the transaction fee, or the charge that a business must pay each time it processes a customer’s payment, from 5% to 6.5%.

However, according to the report, the company’s consolidated gross merchandise sales, a key industry metric, fell 4.6% to $3.1 billion in the reported quarter due to consumer spending pressures, particularly for lower-income buyers, as well as year-over-year declines in some larger categories such as home and living and craft supplies.


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