Etsy's Business Strategy Sets the Course for Strong Recovery Once Macroeconomic Pressures Abate

Etsy has carved out an interesting competitive niche, jockeying for e-commerce wallet share across a variety of categories in the long tail of unbranded products. Its eponymous core marketplace is filled with artisanal crafts and customizable goods from predominately small, hobbyist sellers, with roughly 30% of products made to order. While Etsy's unique inventory is a key differentiator and a point of strength, it has made marketing its fare broadly quite challenging. Recent investments have focused on improving buyer consideration, emphasizing product quality, and improving platform reliability, which we believe is appropriate.