From Nasdaq:

Etsy (NASDAQ: ETSY) processed over $13 billion of transactions in each of the last two fiscal years. The e-commerce company operates as a marketplace platform, which connects buyers with sellers. Etsy’s profit margins are higher than Walmart, earning about 10%, and eBay, earning over 20% on its sales.

Etsy collects roughly 20% of the transaction price in fees charged to merchants, which includes standard listing and transaction fees as well as variable fees such as payment processing. The company is making investments to further boost profit margins and move towards more recurring revenue from subscription products.

Etsy’s growth cycle has been interrupted by stalling sales volumes. The company is focused on engineering a rebound to keep the merchant fees climbing over time. The company is currently not included in the 10 best stocks for investors to buy now.

The Motley Fool has positions in and recommends Amazon, Etsy, Home Depot, Shopify, and Walmart. The Motley Fool also recommends eBay.



Read more: Etsy Sells Over $13 Billion of Products to Its Customers Each Year, but Its Profits Come From a Different Place Entirely