Elon Musk tweeted “I kind of like Etsy” and the action skyrocketed. Yahoo Finance talks to Jessica Teich, associate editor at the Good Housekeeping Institute about the platform’s popularity.
Video transcription
– Did you hear what Elon Musk tweeted? The first tweet was, “I kind of love Etsy.” And then he went on to say: “I bought a hand-knitted wool Marvin, the Martian [INAUDIBLE] for my dog. “Okay. So, yes, Elon Musk has a lot of followers, and they love him, but there’s a lot more, because Etsy has millions of followers who love them, they love that platform.
So, let’s talk about this with Jessica Teich, assistant editor of “Good Housekeeping”. Thank you for joining us, Jessica.
JESSICA TEICH: Thank you very much for having me.
– Etsy, I bought something at Etsy about a year ago, but there is really something for everyone there. This is not just about household items. There are antiques. There are collectible items. And it keeps moving forward. You don’t need Elon Musk, do you?
JESSICA TEICH: Well, you don’t need Elon Musk, but I think the Elon Musk plug for the Marvin cap, the Martian, really talks about what’s available on Etsy. As you mentioned, it’s not just about consumer goods or household items, but you can get a wide range of things, from personalized gifts to a Marvin the Martian cap, if you like, to anything you can really imagine. It is this online market with millions and millions of sellers and millions of buyers. In 2019, there were more than two million active sellers and more than 45 million active buyers, and that was before they had their best year in 2020.
SEANA SMITH: Yes, and, Jessica, talking about their best year, I mean, it was amazing, especially when you look at Etsy’s stock price, the shares have gone up more than 300% in just the last 12 months. I’m curious to what extent you think that part of the growth we’ve seen in the company over the past few months is sustainable.
JESSICA TEICH: Mm-hmm. I think Etsy is a great example of one of those retailers that saw a boom with the pandemic. I mean, profiting the way they did last year is really remarkable, and part of the reason for that is because of the masks. So, we saw so many different retailers and brands making efforts in 2020 to make these cotton masks and, for Etsy, all the salespeople who are there, these millions and millions of salespeople, are now using their sewing machines and making face masks where people couldn’t get them in March.
So that led to the best year ever for Etsy. As far as this is sustainable, I think it depends on how long we have to use these masks.
– As a curiosity, are the customers who read “Good Housekeeping” and the customers who shop at Etsy one and the same? Do you see crossover in your demographic group?
JESSICA TEICH: I’m not sure if they are the same, but we know that our readers love Etsy gifts. Love to Etsy gifts. I’ve been shopping at Etsy for a long time, and the reason I think so many people love it is because you can really find those unique gifts there.
Good Housekeeping is known for its gift guides, and this year we saw people flocking to Etsy, not only because of face masks, but also because of personalized gifts. So, you can get anything from a pillowcase cover with the name of each member of the family. You can get an impression with personalized lyrics if you want to give it to someone if you have a special song to share. You can get a number of things that look very special and personal to someone you love.
I think it’s another reason why Etsy was so popular in 2020. We weren’t all on vacation this year. I think there was a big boom of people sending gifts to each other, whether from a distance, from a distance. We just weren’t spending a lot of time together this year, so that personal touch really goes a long way.
SEANA SMITH: And, Jessica, when we also talk about Etsy’s success, I think we also need to point out that they really gave almost so many of these small businesses a lifespan, especially those that wouldn’t have been able to survive during the pandemic if they didn’t have the platform of Etsy. What do you think is the growth potential for Etsy just in terms of courting more of these small companies here after the pandemic?
JESSICA TEICH: Mm-hmm. I’m really happy that you touched on that, Seana. I think Etsy is wonderful in the way it opens up a world for small businesses. If you don’t have a showcase, if you haven’t built your brand yet, that doesn’t stop you from selling on Etsy. You can simply sign up, open an account and start selling immediately.
Etsy has a small stake, somewhere between $ 0.20 to 5% of transactions. So, as far as they are concerned, being Etsy, extending the market to other small companies, I think it is unlimited.
– As soon as we are done, a final question for you. Valentine’s Day or Mother’s Day, what would be bigger for Etsy?
SEANA SMITH: [LAUGHS]
JESSICA TEICH: Oh my God. I don’t know which one is the biggest for Etsy. I think it’s Mother’s Day. If I had to guess, based on what we see our “Good Housekeeping” readers buying, I would say Mother’s Day. Are people looking to splurge on their mothers, and don’t they deserve it?
– I don’t think you will find someone who –
SEANA SMITH: Yes, they do.
– – I disagree with that answer. Thank you so much for joining us. I think it was Seana in the background that we all heard. But I just want to remind everyone that Jessica Teich is the assistant editor for “Good Housekeeping”. It was nice to have you here.