Etsy’s CEO Josh Silverman believes that as the country is once again moving toward easing COVID-19 related restrictions, there are two competing forces at play.
On one hand, there are millions of consumers who have typically shopped at physical stores but are now shopping online. And on the other hand, physical retail is expected to make up for a smaller share of consumers’ spending as activities such as eating at restaurants and traveling once again resume.
“What I don’t know — and what I don’t know that any of us know — is what’s going to happen to consumer spending overall as restrictions ease,” Silverman said. “What I do know is that if you look over the long term, if you’re looking at 2022 and 2023 and beyond, e-commerce is bigger and stronger.”
Even with an expected shift in consumers’ spending habits, Silverman believes that Etsy is well-positioned to continue to grow its market share.
Etsy generated $1.73 billion in revenue in 2020, which was up by 111 percent year-over-year, and its net income rose to $349 million, a 264 percent increase. Gross merchandise sales on the company’s platform came out to $10.28 billion, up from $4.97 billion in 2019.
These gains, which were partly driven by an increase in online demand for products such as face masks, helped Etsy achieve its 2023 business goals three years ahead of time, CNBC reported.
Looking ahead, Silverman said that given the uncertainty in the market and how consumers’ spending habits will evolve, it is hard to make future projections for the company’s growth.
Etsy reportedly declined to issue guidance for the entire year and instead plans only to offer quarterly guidance this year. The company expects its revenue to reach $513 million to $535 million, which is significantly higher than the $383 million Wall Street analysts had estimated.