Mobile transactions account for 44% of Etsy’s Q3 gross sales
06.11.2015 342 views
Sales on Etsy Inc., the operator of an online marketplace for crafty goods, grew nearly 22% in Q3, driven by 25% increase in the number of consumers shopping the site versus a year ago. The percentage of consumers using mobile device to access Etsy listings also increased.
Etsy says 60% of visitors in Q3 used mobile to access the site, up from 55% a year earlier. Mobile transactions also accounted for 44% of gross merchandise sales, up from 38% a year earlier. “We narrowed the gap between mobile visits and GMS more than we have in any single quarter in our history,” Etsy CEO Chad Dickerson said in a call discussing the results. “We also continue to grow our mobile app downloads, which increased to more than 30 million this quarter.” That app launched in November 2011.
Etsy is No. 24 in the Internet Retailer 2015 Top 500 Guide.
The online marketplace also noted that 90% of its gross merchandise sales comes from traffic arriving at the marketplace organically. It says it spent $10 million on paid marketing—or 1.76% of gross merchandise sales—on a mix of paid search, Google Product Listing Ads and affiliate marketing in the third quarter.
Revenue streams also shifted in the quarter. Revenue derived from what Etsy calls Seller Services grew the most year over year and now accounts for slightly more than the revenue Etsy generates from seller fees and commissions on sales. Seller Services include Etsy’s shipping label and direct checkout program, and Promoted Listings, the paid search ads marketplace sellers can buy to have their products appear high in search results on Etsy.com and within the Etsy mobile app.
The segment contributed $32.3 million to Q3 revenue, or 49.2% of Etsy revenue, up 66.5% from a year earlier, when it accounted for about 40.7% of quarterly revenue. Etsy attributes the leap in Seller Services revenue primarily to the revenue from Promoted Listings. Etsy executives say they expect more sellers to use the direct checkout program as well, due to enhancements rolled out during the quarter, including a full integration with PayPal.
Source: Internet Retailer