WCWB Blog
Is Etsy Still a Good Place to Run a Business?
A 2025 Breakdown
We work with many individuals who use Etsy as one of their platforms for e-commerce. Over the past few years, Etsy has transformed from a quaint online marketplace for handmade goods into a complex e-commerce platform that now faces steep competition and evolving user expectations. While millions still turn to Etsy to launch small businesses, recent shifts in consumer habits and internal platform changes have raised new questions about whether Etsy is still a profitable place to sell. With over 8 million active sellers in 2024 alone, Etsy remains a major player—but NOT EVERY SHOP IS THRIVING.
One of the clearest signals of Etsy’s challenges is its TUMBLING STOCK. Shares are down over 80% from their 2021 highs, with the price now hovering around $53. Experts link this drop to increased competition from discount mega-retailers like Temu and Shein, as well as a general consumer trend toward budget-friendly shopping. This shift away from Etsy’s personalized and often premium-priced products has left both investors and sellers worried. Additionally, a $2.3 billion DEBT LOAD has led to sharp criticism of Etsy’s long-term financial stability.
For sellers on the platform, the story is a mixed bag. About 26–30% of Etsy shops operate as full-time income sources, with 40% viewing their shop as a legitimate business. However, the majority—ROUGHLY 70%—either operate at hobby level or fail to gain the momentum needed for sustainable revenue. Only one-third of shops see consistent sales within their first year. That said, successful sellers tend to have a niche, utilize Etsy SEO tools, and respond quickly to trends—suggesting that strategy and adaptability can still pay off.
Buyers, too, are seeing a shift in their experience. Etsy has introduced mandatory seller verification and is experimenting with TikTok-style product discovery using AI personalization. This could enhance user trust and shopping relevance, but may also raise barriers for new or casual sellers. Meanwhile, Etsy’s algorithm updates are favoring active, optimized shops—pushing serious sellers to stay competitive and well-informed to maintain visibility.
In the end, Etsy remains a viable platform for business—but success isn’t automatic. Around 30% OF SELLERS are doing well enough to make real money, while the rest must evaluate whether it’s worth the time or investment. With consumer behavior shifting, top-performing sellers are leaning into data-driven insights, branding, and long-term planning. Etsy is evolving—and for those willing to evolve with it, the rewards are still very real. It's important to stay on top of new trends as a business owner in order to protect your business and continued growth.
Written By: WCWB Staff
- Contimod Etsy Stats (2024) - https://www.contimod.com/etsy-statistics/
- Business Insider – Shein & Temu’s Disruption - https://www.businessinsider.com/shein-temu-retail-forever-21-billabong-bankruptcy-retail-cheap-shopping-2025-2
- Sherwood News – Etsy’s Declining Stock - https://sherwood.news/markets/the-wheels-have-fallen-off-etsys-boom-now-sharks-are-starting-to-circle/
- Fitsmallbusiness – Etsy Business Usage - https://fitsmallbusiness.com/etsy-statistics/
- World Metrics – Etsy Seller Success Rates - https://worldmetrics.org/
- Reddit Etsy Threads - Seller Income & Experience - https://www.reddit.com/r/EtsySellers/
- Wall Street Journal – AI-Driven Personalization - https://www.wsj.com/tech/etsy-ebay-aim-to-imitate-social-media-with-hyper-personalized-shopping-92bd28c9
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