Etsy operates a two-sided online marketplace connecting independent sellers with buyers looking for unique, handmade, vintage, and personalized goods. The core Etsy marketplace accounts for roughly 88% of consolidated GMS and is built around items buyers cannot easily find elsewhere — about 81% of surveyed buyers say Etsy offers things they can't find anywhere else. Key purchase occasions include gifting, custom or made-to-order items (about 30% of GMS), and general discovery of unique goods. Etsy's seller base is predominantly micro-entrepreneurs: 89% are one-person businesses and 97% work from home. The platform had 86.5 million active buyers and 5.6 million active sellers as of year-end 2025. Etsy makes money by charging sellers fees to participate — a transaction fee, payment processing fee, and listing fee form the required revenue base, while optional services like Etsy Ads (on-site promoted listings) and Offsite Ads (web-wide promotion on Google, Facebook, etc.) round out the revenue mix. GMS drives most revenue since fees are largely percentage-based, and take rate expansion has been an additional earnings lever. The business model is asset-light — Etsy holds no inventory and owns no fulfillment infrastructure — supporting Etsy marketplace adjusted EBITDA margins of around 30%. Etsy's growth strategy focuses on showing up earlier in the shopping journey via social and AI-enabled channels, improving search and recommendations through machine learning, building buyer loyalty, and amplifying seller authenticity. Etsy also recently agreed to sell Depop, a secondhand fashion marketplace, to eBay for $1.2B, which will consolidate reporting around the core Etsy marketplace.