Analyzing Etsy's User Growth and Market Viability for New Sellers in 2025

Mag Shum
Feb 22
5 min read

Key Points

Etsy’s active buyers and sellers have shown significant growth from 2022 to 2023, with projections for 2024 suggesting continued expansion despite some challenges.
In 2022, Etsy had 89.4 million active buyers and 5.4 million active sellers; in 2023, these numbers increased to 92.0 million buyers and 7.0 million sellers.
Projected for 2024, active buyers may reach around 94.7 million, and active sellers around 9.1 million, based on historical growth rates, though recent data suggests a potential slowdown.
Despite a decrease in Gross Merchandise Sales (GMS) in 2024, Etsy’s growing user base and revenue growth make it a viable platform for new sellers.

Active Users Overview

Etsy’s platform has seen a steady increase in active users over the past few years, reflecting its appeal to both buyers and sellers of unique, handmade, and vintage items. This growth suggests a robust market, but recent economic headwinds have impacted sales, which is something to consider.

Growth Trends and Projections

From 2022 to 2023, active buyers grew by about 3%, and active sellers saw a surprising 30% increase, indicating strong seller interest. However, 2024 data shows a potential decline in seller growth, with Q3 active sellers at 6.2 million, down from 6.7 million in Q3 2023, suggesting competition may be intensifying.

Is It Worth Opening a Shop?

Given the large and growing buyer base, opening a shop on Etsy in 2025 could still be worthwhile, especially if you target niche markets. However, increased competition and economic challenges mean you’ll need a strong strategy to stand out.

Detailed Analysis of Etsy Platform User Trends and Viability for New Sellers

Etsy, a leading online marketplace for handmade, vintage, and unique items, has experienced notable growth in its user base over recent years, making it a potential platform for new sellers. This analysis covers the number of active buyers and sellers from 2022 to 2024, projects future trends, and evaluates whether opening a shop on Etsy remains a viable option as of February 2025.

User Base Growth: 2022–2023

To understand Etsy’s trajectory, we first examine the number of active buyers and sellers for the Etsy marketplace specifically, as this is most relevant for potential new sellers. Data from Etsy’s official Form 10-K filings provide the following figures:

2022

Active Buyers: 89.4 million
Active Sellers: 5.4 million
Source: Etsy, Inc. Form 10-K for the fiscal year ended December 31, 2022

2023

Active Buyers: 92.0 million, a 3% increase from 2022, indicating steady growth in the buyer community.
Active Sellers: 7.0 million, a significant 29.6% increase from 2022, reflecting a surge in seller participation.
Source: Etsy, Inc. Form 10-K for the fiscal year ended December 31, 2023
These numbers highlight Etsy’s appeal, with a large and expanding user base. The buyer growth of 3% aligns with broader e-commerce trends, while the seller growth of nearly 30% is particularly notable, suggesting increased interest from artisans and small businesses.

Projecting Trends for 2024

To project 2024 figures, we analyze the growth rates from 2022 to 2023. Assuming these rates continue:

• Active Buyers: A 3% increase on 92.0 million yields approximately 94.7 million (92.0 million * 1.03).

• Active Sellers: A 29.6% increase on 7.0 million yields approximately 9.1 million (7.0 million * 1.296).

However, recent data from Q3 2024, sourced from Marketplace Pulse, indicates a potential slowdown. Active sellers in Q3 2024 were reported at 6.2 million, down 7% from 6.7 million in Q3 2023, suggesting that seller growth may not have sustained the previous year’s momentum. This decline could be attributed to economic headwinds, as noted in Etsy’s Q4 2024 earnings press release, which reported a 6.8% year-over-year decrease in consolidated Gross Merchandise Sales (GMS) to $3.7 billion for the full year 2024.

Given this, our projection for active sellers in 2024 may be optimistic. A more conservative estimate, considering the Q3 decline, might place active sellers closer to 7.0 million or slightly lower, depending on Q4 performance. Active buyers, however, are likely to follow the steady 3% growth, given the lack of specific negative indicators for buyer numbers in recent reports.

Detailed Breakdown by Marketplace

It’s worth noting that Etsy’s figures include its “House of Brands” marketplaces (Reverb, Depop, and Elo7), but for this analysis, we focus on Etsy.com, as it’s the primary platform for most sellers. For completeness:

2022 Total (All Marketplaces):

◦ Active Buyers: 95.1 million

◦ Active Sellers: 7.5 million

2023 Total (All Marketplaces):

◦ Active Buyers: 96.5 million

◦ Active Sellers: 9.0 million

These totals include additional marketplaces, with Etsy.com contributing the majority (89.4 million buyers and 5.4 million sellers in 2022, 92.0 million buyers and 7.0 million sellers in 2023). The growth in other marketplaces (e.g., Depop with 3.6 million buyers in 2023) supports the overall ecosystem’s health but doesn’t directly impact the decision for an Etsy-specific shop.

Economic and Competitive Context

Etsy’s Q4 2024 earnings press release, dated February 19, 2025, highlights challenges, including a 1.2% increase in revenue to $852.2 million but a significant drop in GMS, driven by reduced consumer spending on discretionary items. CEO Josh Silverman noted, “Despite facing significant GMS headwinds in 2024, we are proud to have delivered year-over-year revenue growth and very strong profitability.” This suggests that while the platform remains financially sound, buyer behavior may be shifting, potentially affecting new sellers’ ability to generate sales.

Competition is another factor, with active sellers increasing from 5.4 million in 2022 to 7.0 million in 2023, and potentially more in 2024. This rise indicates a crowded marketplace, which could make it harder for new shops to gain visibility without strong marketing and unique offerings.

Viability for New Sellers in 2025

Given the data, opening a shop on Etsy in 2025 could still be worthwhile, but with caveats:

Pros:

A large and growing buyer base (92.0 million in 2023, projected 94.7 million in 2024) provides a substantial market for unique, niche products.
Etsy’s revenue growth and profitability indicate a stable platform, with investments in features like AI-driven gift modes potentially enhancing seller tools.
The 30% seller growth from 2022 to 2023 shows strong interest, suggesting a vibrant community.

Cons:

Increased competition, with seller numbers potentially plateauing or declining in 2024, may require significant effort to stand out.
Economic headwinds, as evidenced by declining GMS, could affect sales, particularly for non-essential items.
The need for effective marketing and niche targeting is critical, given the crowded marketplace.

To succeed, new sellers should focus on high-demand categories (e.g., home decor, jewelry, as noted in Etsy statistics reports), leverage Etsy’s advertising tools, and ensure high-quality, unique listings. Monitoring platform updates and economic trends will also be essential.

Conclusion

Based on the trend of increasing active buyers and the platform’s financial health, Etsy remains a viable option for new sellers in 2025. However, the potential slowdown in seller growth and economic challenges suggest that success will depend on strategic positioning and marketing efforts. For those with unique, in-demand products and a willingness to navigate competition, opening a shop on Etsy is still worth considering.