In the world of ecommerce today, Etsy stands out as a uniquely human, personable shopping experience. So how many people actually use Etsy in 2024?
The current number of active Etsy users is a whopping 96 million as of 2021, and it continues rising daily.
With thousands of sellers offering handmade, vintage, and personalized products, Etsy has become a top destination for buyers looking for items with heart and soul.
Come, my friend, let‘s take an in-depth tour of Etsy‘s phenomenal growth over the years. We‘ll explore fun facts around Etsy‘s engaged community, top-selling categories, successful seller stories, business model, and more!
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A Meteoritic Rise Since 2005
To fully grasp Etsy‘s popularity today, we have to go back to its origins.
Etsy was founded in 2005 by Robert Kalin and a few friends in Brooklyn, New York. Back then, it was a humble marketplace for local artists and crafters to sell their wares.
Fast forward to today, and Etsy has exploded into one of the world‘s largest handmade ecommerce platforms.
Let‘s take a look at Etsy‘s incredible growth trajectory since 2005:
| Year | Active Etsy Users |
|---|---|
| 2005 | 120,000 |
| 2014 | 19.8 million |
| 2017 | 33.3 million |
| 2019 | 47.2 million |
| 2021 | 96.3 million |
As you can see above, Etsy has grown its community over 800x since starting out.
The number of Etsy sellers also skyrocketed from just 120,000 in 2005 to over 7.5 million active sellers as of 2021.
Much of this massive growth spurt happened between 2019 to 2021, when the COVID-19 pandemic drove even more buyers and entrepreneurs to Etsy.
But the key takeaway is that Etsy is no longer just a niche platform – it has truly entered the ecommerce big leagues.
A Top 10 Ecommerce Site in the US
In fact, Etsy now firmly ranks among the top 10 largest ecommerce sites in the United States today.
Based on average monthly traffic from SimilarWeb, below are the most-visited retail sites in the US:
- Amazon – 2 billion visits
- eBay – 688 million
- Walmart – 388 million
- Etsy – 238 million
- Target – 175 million
With over 238 million monthly visits, Etsy holds its own against giants like Walmart and Target.
The site‘s strong organic traffic is driven by Etsy‘s incredibly loyal and engaged community. Etsy buyers tend to visit frequently to discover unique new items and handmade products you simply can‘t find elsewhere.
Sellers also drive significant traffic by marketing their Etsy shops across social media and other platforms.
So between its committed user base and sellers‘ marketing efforts, Etsy continues to draw crowds that rival the biggest names in retail.
Billions in Handmade Sales
But does booming traffic also translate into sales for Etsy?
Absolutely! In 2021 alone, Etsy facilitated $13.3 billion in gross merchandise sales.
To give you an idea of scale, $13 billion is comparable to the entire GDP of a small nation like Montenegro!
| Year | Etsy Gross Merchandise Sales |
|---|---|
| 2017 | $3.3 billion |
| 2018 | $4.2 billion |
| 2019 | $5.0 billion |
| 2020 | $10.3 billion |
| 2021 | $13.3 billion |
As you can see above, Etsy‘s sales have grown over 400% in just 5 years. This really demonstrates the rising consumer demand for unique handmade goods.
At over $13 billion in annual sales, Etsy has become a lucrative platform for millions of entrepreneurs. Top Etsy sellers easily earn anywhere from six figures to over $1 million per year!
Even for smaller sellers, Etsy can provide a significant "side hustle" income stream in the thousands per month. Etsy opens up global ecommerce access like never before.
Which Categories Reign Supreme?
Now, with millions of items for sale on Etsy, which categories generate the most sales?
Based on Etsy‘s market data, these were the top 5 best-selling categories on Etsy as of July 2022:
- Craft Supplies – Items like crochet patterns, knitting tools, and planner stickers.
- Handmade Items – Custom items like wedding invitations, personalized boxes, party favors.
- Jewelry – Handmade jewelry including earrings, necklaces, rings, bracelets.
- Weddings – Bridal shower and wedding decor, gifts for bridesmaids.
- Party Supplies – Banners, balloons, custom napkins, and tableware for parties.
However, Etsy has a long tail of thousands more categories beyond the top sellers. Other popular categories include art, clothing, home decor, toys, pet supplies, and collectible vintage items.
As a seller, carefully analyzing category demand and competition is key before opening up shop. Finding a niche with surging interest can help you stand out in the Etsy marketplace.
Inside Etsy‘s Million-Dollar Seller Club
Etsy offers a life-changing income opportunity for sellers who hit a sweet spot with hot product categories and marketing tactics.
Let‘s look at some of Etsy‘s top high-earning sellers:
- PlannerKate – $1.8 million in lifetime sales
- CatlynMinimalist – $1.5 million in sales
- Beadboat – $1.4 million in sales
- ModParty – $1.2 million in sales
- Yakutum – $900,000 in sales
While reaching millions in sales is a rare feat on Etsy, thousands of sellers easily earn over $100,000 per year.
By catering to winning categories and marketing smartly on social media, talented entrepreneurs are building real brands and full-time businesses on Etsy.
How Does Etsy Make Money?
For sellers, Etsy provides an easy ecommerce platform to open a digital storefront and start selling quickly.
But how does Etsy itself earn money to fund its platform?
Etsy makes money by charging sellers a range of different fees:
- Listing fees – $0.20 per item listed, with each listing lasting 4 months.
- Transaction fees – Etsy takes 5% of the item price + shipping cost.
- Offsite ads – 12% of order total if sellers enable Etsy-powered Google/Facebook ads.
- Payment processing – Between 3-5% fee when using Etsy Payments.
| Etsy Revenue | 2020 | 2021 |
|---|---|---|
| Overall Revenue | $1.7 billion | $2.3 billion |
| Marketplace Revenue | $1.3 billion | $1.6 billion |
As shown above, Etsy generated over $2 billion in total revenue in 2021 – most of which came from its marketplace fees.
So by charging small fees to millions of sellers, Etsy‘s profits add up quickly! Sellers should factor these fees into their pricing strategy and margins.
The Future Looks Bright
Etsy has come a remarkably long way since its humble beginnings in 2005. It has grown into a renowned global brand and a top 10 ecommerce contender.
In the years ahead, I envision Etsy will likely focus on:
- Expanding its market share in competitive niches like jewelry and apparel.
- Acquiring more startups to expand its audience, especially younger demographics.
- Growing its global presence, particularly in high-potential regions like Latin America and Asia.
- Investing more in its reputation for ethical practices and environmental sustainability.
With the pandemic accelerating ecommerce growth across the board, Etsy is poised for continued success. Its uniquely human shopping experience fills a gap that profit-driven giants like Amazon cannot.
Etsy: A Marketplace Powered by People and Passion
In closing, Etsy remains one of the most inspiring ecommerce success stories of the 21st century.
In an increasingly digital and robotic world, Etsy has built an authentic community around creative entrepreneurs and their handcrafted products.
Today, over 96 million kindred spirits gather at Etsy to share their passions. Shoppers delight in discovering quirky, meaningful items. Sellers proudly earn income by sharing their talents.
While chasing productivity and profits, our society often forgets the simple joy of making, sharing, and appreciating artistry.
And that‘s the beauty of Etsy – it reconnects us with the people and meaning behind the things we buy and sell.
So the next time you‘re hunting for a handcrafted gift or item that sparks joy, I hope you‘ll stop by Etsy for a dose of creativity, care, and humanity.
Happy browsing, my friend!
