It’s not often that Amazon doesn’t get its way, Etsy has become a real thorn in its side as it seeks to expand even further this year!
You all know the story by now:
Etsy (NYSE: ETSY) is floating around, minding its own business, selling vintage goods — BOOM – in marches Amazon with its copycat, Amazon Handmade. “Well, that’s it for Etsy I guess”, the analysts mumble.
David defeats Goliath and Etsy goes down as the poster child of ‘anti-Big Tech’. 5 years on from Amazon Handmade launch, Etsy stock is up more than 2,500%, closing yesterday at an all-time high of $205.15 per share with a valuation of almost $26 billion.
How did Etsy get here though? Well, by making hay out of a global pandemic.
Can Etsy take on Amazon?
These are two very different products, and in reality, Etsy is not looking to take on Amazon, a company more than 40 times its size.
Etsy is an e-commerce website focused on handmade or vintage items and craft supplies, while Amazon is a global behemoth intent on inserting itself into every aspect of our lives until we are all forced to bow down to our one true supreme leader, Jeff Bezos…
Ok, I went a little off-topic, so let’s stick with Etsy, which saw its share price jump 12% Tuesday off the back of a simple Valentine’s Day post on its blog. Although it has yet to reveal its hotly anticipated Q4 2020 sales figures — typically its most successful quarter — it did manage to slip in a few exciting stats into this post, including:
- Searches on Etsy for Valentine’s Day cards have increased by 38%.
- There are now 200,000 Valentine’s Day card options.
- There has been a 117% increase in searches on Etsy for Valentine’s Day decor
- At-home mixology is on the rise, with a whopping 1,183% increase in searches on Etsy for cocktail DIY kits.
- Searches for baking, cooking, and other food-related DIY kits have increased by 165%.
- A 45% increase in searches on Etsy for zodiac necklaces.
- A 440% increase in searches for birth flower jewelry.
- An 8% increase in searches on Etsy for notebooks, journals, or diaries.
- A 163% increase in searches on Etsy for bath bombs or bath salts.
- Searches for personalized pet items on Etsy increasing by 82%.
- A 42% increase in searches for lingerie.
- A 167% increase in searches for pajamas.
- A 51% increase in searches for robes.
- A 115% increase in searches for slippers or house shoes.
By this point, you’re probably thinking, “so what?”
Well, with Q3 revenue last year growing 128%, and Q4 expected to be even more impressive, Etsy has subtly shown us that 2021 is going to be yet another blockbuster year for them. Just look at the growth in gift and stay-at-home options — who else has bought slippers and a robe because of COVID?
Even with a vaccine in sight, Etsy is booming, and we should expect another blockbuster quarterly report in February. This is unlikely to be the last all-time high it hits in 2021!
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MyWallSt operates a full disclosure policy. MyWallSt staff currently holds long positions in companies mentioned above. Read our full disclosure policy here.