Etsy has been winning big in 2020 with new buyers, which contributed to strong revenue performance in the third quarter. Revenue more than doubled year over year, while new buyers made up a quarter of its gross merchandise sales.
While investors might be concerned about how a COVID-19 vaccine could slow down Etsy’s momentum if more people feel comfortable shopping in stores again, Etsy still has opportunities to drive further growth.
More people are discovering Etsy
One of management’s top priorities has been to convince lapsed buyers that Etsy can be a go-to place to shop for a range of items for many occasions. The pandemic gave Etsy some momentum in this effort. Etsy added 10 million new buyers and 5 million reactivated buyers over the last 12 months through the third quarter. A reactivated buyer is someone who hasn’t bought anything on the platform in the last 12 months. Overall, the number of active buyers grew by 56% year over year, reaching 69 million, representing roughly half of all unique buyers who have ever bought anything on Etsy.
