Elon Musk tweeted ‘I like Etsy’ and the stock shot open to the outside. Yahoo Finance talks to Jessica Teich, deputy editor, Good Housekeeping Institute about why the platform is so popular.
Video transcription
– Did you hear what Elon Musk tweeted? The first tweet was, “I like Etsy.” And then he said, ‘A hand-knitted wool Marvin bought the Marsman [INAUDIBLE] for my dog. “Okay. So, yeah, Elon Musk has a lot of followers, and they love him, but there’s so much more, because Etsy has millions of followers who worship them, and worship the platform.
So let’s talk about this with Jessica Teich, Deputy Editor of ‘Good Housekeeping’. Thank you for joining us, Jessica.
JESSICA TEICH: Thank you so much for having me.
– Etsy, it’s been about a year since I bought anything from Etsy, but there really is something for everyone there. These are not just household goods. There are antiquities. There are collectibles. And it continues to plod. Do not need Elon Musk?
JESSICA TEICH: Well, it does not need Elon Musk, but I think Elon Musk’s plug for the Marvin the Mars hat really speaks to the scope of what’s available on Etsy. As you mentioned, these are not just consumer goods or household goods, but you can get a whole range of things, from personalized gifts to a Marvin the Mars hat, if you will, to anything you can actually imagine. It is this online market with millions and millions of sellers and millions of buyers. In 2019, there were more than two million active sellers and more than 45 million active buyers, and that was before they had their best year ever in 2020.
SEANA SMITH: Yes, and, Jessica, over their best year ever, I mean, it was amazing, especially when you look at the share price of Etsy, while the shares have only risen more than 300% in the last twelve months. I’m curious how sustainable you think growth has been within the company over the past few months.
JESSICA TEICH: Mm-hmm. I think Etsy is an excellent example of one of these retailers that has seen a boom in the pandemic. I mean, it’s really remarkable to earn in the way they’ve had it over the last year, and part of the reason it was because of face masks. We saw so many different retailers and brands turn up in 2020 to make these cotton face masks, and for Etsy, all the sellers out there, those millions and millions of sellers, are now taking to their sewing machines and making face masks where people could not get them in March. not.
This led to the best year ever for Etsy. In terms of sustainability, I think it depends on how long we have to wear these masks.
– Out of curiosity, are the customers who read “Good Housekeeping” and the customers who shop at Etsy the same? Do you see crossover in your demographics?
JESSICA TEICH: I’m not sure if it’s one and the same, but we do know that our readers love Etsy gifts. Love to Etsy gifts. I’ve been buying on Etsy forever, and the reason I think so many people love it is that you can find those unique gifts there.
‘Good Housekeeping’ is known for its gift guides, and this year we saw people flock to Etsy, not only for the face masks, but also for personalized gifts. So you can get everything from a pillowcase cover with the name of each family member. You can get a print with custom lyrics if you want to give it to someone if you have a special song you share. You can send any number of things that feel very special and personal to someone you love.
I think that’s another reason why Etsy was so popular in 2020. We were not all together for the holidays this year. I think there was a huge surge in people sending gifts to each other, whether it was from afar, from near. We just did not spend time together this year, so the personal touch is really a long way off.
SEANA SMITH: And Jessica, if we are also talking about the success of Etsy, I think we should also point out that they really extended such a lifeline to so many of these small businesses, especially issues that could not really survive during the pandemic if they did not have Etsy’s platform. What do you think is the growth potential for Etsy just to compensate more of these small businesses here after the pandemic?
JESSICA TEICH: Mm-hmm. I’m really glad you brought it, Seana. I think Etsy is great in the way it opens up a world for small businesses. If you do not yet have a store window, or have not even built your brand, it can not sell you on Etsy. You can just register, create an account and start selling right away.
Etsy takes a small share, between $ 0.20 and 5% of the transactions. As for them – it’s Etsy, which is expanding the market to additional small businesses – I think it’s unlimited.
– Just as we conclude, one last question to you. Valentine’s Day or Mother’s Day, which would be bigger for Etsy?
SEANA SMITH: [LAUGHS]
JESSICA TEICH: Oh my earth. I do not know which one is bigger for Etsy. I think Mother’s Day. If I had to guess, I would say Mother’s Day, based on what our ‘Good Housekeeping’ readers are buying. People are looking for their moms and they do not deserve it?
– I do not think you’re going to find someone who would–
SEANA SMITH: Yes they do.
– – does not agree with the answer. Thank you for joining us. I think it was Seana in the background that we all heard. But I want to remind everyone that Jessica Teich is deputy editor of ‘Good Housekeeping’. It was good to have you here.