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Elon Musk tweeted "I kinda like Etsy" and the stock shot up at the open. Yahoo Finance speaks with Jessica Teich, Deputy Editor, Good Housekeeping Institute about what the platform is so popular.
- Did you hear what Elon Musk tweeted? The first tweet was, "I kinda of love Etsy." And then he went on to say, "Bought a hand knit wool Marvin the Martian [INAUDIBLE] for my dog." All right. So, yes, Elon Musk has a bunch of followers, and they adore him, but there's so much more, because Etsy has millions of followers who adore them, adore that platform.
So let's talk about this with Jessica Teich, "Good Housekeeping's" deputy editor. Thank you for joining us, Jessica.
JESSICA TEICH: Thank you so much for having me.
- Etsy, it's been about a year since I've bought something off of Etsy, but there's really something for everybody there. It's not just household goods. There's antiques. There's collectibles. And it continues to plod along. Doesn't need Elon Musk, does it?
JESSICA TEICH: Well, it doesn't need Elon Musk, but I think that Elon Musk's plug for the Marvin the Martian hat really speaks to the scope of what's available on Etsy. So as you mentioned, it's not just consumer goods or household goods, but you can get a whole range of things, from personalized gifts to a Marvin the Martian hat, if it so pleases you, to anything that you can actually imagine. It is this online marketplace with millions and millions of sellers and millions of buyers. In 2019, that was over two million active sellers and over 45 million active buyers, and that's before they had their best year ever in 2020.
SEANA SMITH: Yeah, and, Jessica, talking about their best year ever, I mean, it was incredible, especially when you take a look Etsy's stock price, shares surging over 300% in the past 12 months alone. I'm curious just how sustainable you think some of the growth is that we've seen within the company over the last several months.
JESSICA TEICH: Mm-hmm. I think that Etsy is a great example of one of these retailers that's seen a boom from the pandemic. I mean, to profit in the way that they have in the last year is really remarkable, and part of the reason that that has been is because of face masks. So we've seen so many different retailers and brands pivoting in 2020 to make these cotton face masks, and for Etsy, all of the sellers who are on there, those millions and millions of sellers, are now taking to their sewing machines and making face masks where people could not get them in March.
So that did lead to the best year ever for Etsy. As far as how sustainable that is, I guess it depends how long we have to wear these masks for.
- Out of curiosity, the clientele that reads "Good Housekeeping" and the clientele that shop at Etsy, are they one and the same? Do you see crossover in your demographic?
JESSICA TEICH: I'm not sure if they're one and the same, but we do know that our readers love Etsy gifts. Love to Etsy gifts. I've been shopping on Etsy forever, and the reason why I think so many people love it is because you really can find those one of a kind gifts there.
"Good Housekeeping" is known for its gifts guides, and this year we saw people flocking to Etsy, not only for those face masks, but for personalized gifts. So you can get anything from a pillowcase cover with every family member's name on it. You can get a print with customized lyrics if you want to give that to somebody if you guys have a special song that you share. You can get any number of things that feel very special and personal sent to somebody that you love.
I think that's another reason why Etsy was so popular in 2020. We weren't all together for the holidays this year. I think there was a huge boom in people sending gifts to each other, whether that was from afar, from near. We just weren't spending time together this year, so that personal touch really goes a long way.
SEANA SMITH: And, Jessica, when we also talk about the success of Etsy, I think we also need to point out that they really extended almost a lifeline to so many of these small businesses, especially ones that wouldn't have been able really to survive during the pandemic if they didn't have Etsy's platform. What do you think the growth potential is for Etsy just in terms of courting more of these small businesses here going forward post-pandemic?
JESSICA TEICH: Mm-hmm. I'm really glad you brought that up, Seana. I think that Etsy is wonderful in the way that it opens up a world to small businesses. If you don't have a storefront, if you don't even have your brand built yet, that doesn't preclude you from selling on Etsy. You can just sign up, make an account, and start selling immediately.
Etsy takes a small share, anywhere from $0.20 to 5% of transactions. So as far as them, them being Etsy, extending the market to additional small businesses, I think it's limitless.
- Just as we wrap up, a final question to you. Valentine's Day or Mother's Day, which would be bigger for Etsy?
SEANA SMITH: [LAUGHS]
JESSICA TEICH: Oh my gosh. I don't know which one is bigger for Etsy. I think Mother's Day. If I had to guess, based on what we see our "Good Housekeeping" readers buying, I would say Mother's Day. People are looking to splurge on their moms, and don't they deserve it?
- I don't think you're going to find anyone who would--
SEANA SMITH: Yes, they do.
- --disagree with that answer. Thank you so much for joining us. I think that was Seana in the background we all heard. But I just want to remind everybody that Jessica Teich is "Good Housekeeping's" deputy editor. It was good to have you here.