Etsy warned Wednesday of a drop in first-quarter gross merchandise sales due to lackluster demand for handcrafted goods and personalized presents sold through its online marketplace.
Etsy shares fell roughly 4% in extended trading after the firm published fourth-quarter gross sales results that fell short of market estimates, reported Reuters.
Consumers in the United States are avoiding buying non-essential goods sold on Etsy due to limited disposable income.
In response, noted the report, Etsy has worked to assist its sellers with marketing and has invested in testing promotions throughout its site to attract more shoppers.
Ariel Ben Solomon is the Growth and Strategy manager at Ecomhunt. He is the host of the Ecomhunt Podcast. Can be followed on Twitter at @ArielBenSolomon
