Etsy’s GMS Turns +0.9% in Q3 2025 as Amazon Fulfills Seller Orders
ETSY•On May 4, 2026, Amazon launched Supply Chain Services which is now fulfilling orders for Etsy sellers, potentially eroding the platform’s small-business differentiation. Etsy achieved a Q3 2025 GMS turnaround from -6.5% to +0.9% year-over-year, with a 24.9% take rate and projected 35.4%–39% EBITDA margins by 2027.
1. Amazon Logistics Enters Etsy Fulfillment
On May 4, 2026, Amazon launched Supply Chain Services, opening its warehousing and delivery network to external sellers including those on Etsy, so orders that appear to support small businesses may be shipped through Amazon’s logistics infrastructure, blurring the platform’s independent-seller appeal.
2. Q3 2025 GMS Growth and Take Rate Gains
Etsy’s asset-light model delivered a GMS reversal from -6.5% to +0.9% year-over-year in Q3 2025, driven by a rising take rate of 24.9% and scenario projections of 35.4%–39% incremental EBITDA margins by 2027 under current fee structures.
3. Share Buybacks and Fee Hike Risks
Management has deployed share buybacks and disciplined capital allocation to bolster shareholder returns, but aggressive fee increases risk triggering seller churn and undermining platform growth if costs outweigh the benefits of improved delivery speed.
