Etsy in sweet spot despite supply chain chaos
Labor Secretary Marty Walsh visits the Port of Los Angeles amid nationwide supply chain crisis
Labor Secretary Marty Walsh visits the Port of Los Angeles amid nationwide supply chain crisis.
Etsy says its sellers have not been hit with the same degree of supply chain headaches other retailers and producers are experiencing during the holiday shopping season, largely due to their sourcing and scale.
The Etsy Inc. logo on a laptop computer arranged in Saint Thomas, Virgin Islands, U.S., on Friday, Feb. 19, 2021 Etsy Inc. is scheduled to release earnings figures on February 25. Photographer: Gabby Jones/Bloomberg via Getty Images (Photographer: Gabby Jones/Bloomberg via Getty Images / Getty Images)
While traditional retailers tend to buy raw materials in bulk from overseas and have seen shortages due to hang-ups like logjams at ports and manufacturing delays, Etsy's sellers have been mostly immune to those issues because they tend to buy materials domestically.
The company told FOX Business 95% of Etsy sellers source their materials within the U.S. and 47% buy materials from their own state.
Michelle Adams, an Etsy seller who makes all-natural beauty and bath products called Cosmic, shaves the corners of her soap in her home studio on Monday, April 3, 2017, in Turlock, Calif. (Photo By Liz Hafalia/The San Francisco Chronicle via Getty Im (Photo By Liz Hafalia/The San Francisco Chronicle via Getty Images / Getty Images)
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The widespread labor shortages plaguing many industries have not hurt Etsy sellers for the most part, either, with 83% of them being businesses comprised of one person working from home.
Earlier this week, Etsy CEO Josh Silverman was part of a coalition of major retail business leaders that met with President Biden at the White House to discuss the ongoing supply chain issues as his administration seeks to assure Americans that retailers will be able to keep up with holiday demand.
NEW YORK, NY – MARCH 13: Josh Silverman discusses Etsy with the Build Series at Build Studio on March 13, 2018 in New York City. (Photo by Roy Rochlin/Getty Images) (Photo by Roy Rochlin/Getty Images)
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In a speech Wednesday, the president claimed that the U.S. supply chain is in "very strong shape," saying, "The CEOs I met with this week reported that their inventories are up, shelves are well stocked, and they're ready to meet consumer demand for the holidays."
President Biden speaks about supply chain issues during the holiday season during an event in the South Court Auditorium on the White House campus, Wednesday, Dec. 1, 2021, in Washington. (AP Photo/Evan Vucci) (AP Photo/Evan Vucci / AP Newsroom)
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"The CEO of Etsy represents over 5 million small businesses and entrepreneurs," Biden said, recalling that Silverman told him that sellers "are less concerned about supply chain challenges this year than they were last year."
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