Reverb sold to Etsy for $270 million

Can’t see it being a bad thing

Etsy has some cool stuff and I’ve always had good transactions buying various gifts, decor items etc
 
lqdsnddist said:
Can’t see it being a bad thing

Etsy has some cool stuff and I’ve always had good transactions buying various gifts, decor items etc
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I think the people that'll be most affected by this will be the sellers. Currently, Etsy charges $0.20 for listing an item, 5% of the item's sale price (this includes shipping cost), and an extra 3% + $0.25 if the buyer pays through Etsy Payments, whereas Reverb charges 3.5% for a sold item (this includes shipping), and an extra 2.7% + $0.25 for items bought using Reverb Payments. If they choose to raise Reverbs fees to match Etsy's, you're looking at paying an extra 1.8% in fees (which, on a $2000 item, means the difference between $124.25 and $160.45 in fees).

EDIT: Etsy also has a time limit on listings (4 months), and if it doesn't sell, you have to pay another re-listing fee.
 
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Well, I don't think that they will rise those fees as soon as possible, however with that math it ain't gonna be a nice thing to have either.
 
r3vo1ution1991 said:
I think the people that'll be most affected by this will be the sellers. Currently, Etsy charges $0.20 for listing an item, 5% of the item's sale price (this includes shipping cost), and an extra 3% + $0.25 if the buyer pays through Etsy Payments, whereas Reverb charges 3.5% for a sold item (this includes shipping), and an extra 2.7% + $0.25 for items bought using Reverb Payments. If they choose to raise Reverbs fees to match Etsy's, you're looking at paying an extra 1.8% in fees (which, on a $2000 item, means the difference between $124.25 and $160.45 in fees)
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They'll lose to ebay's current 3.5%

I'm sure they'll keep that fee
 
Wait for the paid membership tiers, listing expiration with re-listing fees every week, etc...

Nothing is ever the same with acquisitions, and I'm trying to think of a case where something ended up better.
 
Basically, they’re the same business model and only offer a secure selling platform and a very cost-controlled customer service solution. Inventory and content are entirely customer driven. It makes complete sense for Etsy to buy Reverb’s transaction volume. $270 million sale price must mean that Reverb had some pretty serious EBITDA. The good news is that it looks like there’s still a lot of room for specialized, enthusiast based selling sites. Congrats, Reverb!
 
Ouch I am now a casualty of this. Just sold a guitar cab on Reverb. Close to 10% seller fees.

Also for the first time I see that sales tax to be submitted by Reverb. That could explain why the fees are high again.

Looks like I will be back to EBay again. Items always sell quicker on there.
 
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