• by Sarah Mahoney  @mahoney_sarah, April 22, 2025

As global trade tensions rise, Etsy is making it easier for shoppers to stay closer to home. The online marketplace is introducing new tools to highlight domestic sellers and help small businesses weather tariff disruptions. Separately, Etsy announced the sale of Reverb, the musical instrument marketplace it acquired in 2019, signaling a renewed focus on its core platform.

"Recent shifts in trade policies and tariffs between the U.S. and many countries around the world have raised questions about global supply chains, pricing, and the general availability of goods," wrote Josh Silverman, Etsy’s CEO, in a blog post announcing the changes. "As these changes unfold, we remain committed to delivering a seamless experience: helping our buyers shop with confidence and empowering our sellers to run their businesses with as little disruption as possible."

Etsy’s U.S. sellers — located in all 50 states — offer more than 60 million items. Globally, it also connects buyers with 800,000 sellers in the U.K., 300,000 in Canada, 300,000 in Germany, and 100,000 in France. "This provides nearly endless possibilities for shoppers to support small businesses and their domestic economy," Silverman added.

The company’s new tools aim to make it easier for buyers to filter for domestic goods and give sellers more resources to navigate tariff-related risks. In true Etsy style, shoppers can also find plenty of humor in the upheaval, with listings like a “Bitch, I’m terrified” coffee mug and “Penguins against tariffs” T-shirts — all proudly made in the U.S.

Small sellers remain the backbone of Etsy’s model, with 89% operating solo ventures, often from home, and sourcing supplies domestically. That reliance on local production, Etsy believes, gives its sellers more agility in adapting to supply chain turbulence.

Analysts say Etsy faces tariff exposure on roughly 8% to 10% of revenue — similar to Amazon — but is better positioned than companies like Meta and Google, which depend more heavily on global ad markets. "Marketplace models like Etsy and Amazon have a lot of substitutions available," notes Jason Helfstein, who covers internet companies at Oppenheimer. "However, all digital advertising would be impacted by a slower economy as a result of tariffs."

At the same time, Etsy is simplifying its business portfolio. The company announced it would sell Reverb to Creator Partners and Servco, ending a five-year chapter of ownership. Etsy acquired Reverb in 2019, seeing opportunity in the musical instrument marketplace. Once the deal closes, Reverb will become a privately held, independently operated company.

"Backed by two investors who bring a passion for the musical instrument industry as well as a community-first approach, we’re excited to keep transforming creative industries for the better," wrote David Mandelbrot, Reverb’s CEO, in the announcement.