The resources and competitive strengths of Amazon.com, Inc (NASDAQ:AMZN) end up impacting some of the companies negatively. However, there is twist in the state of affairs considering that there are number of tech firms that have seemingly weathered the direct attacks quite well. The big question is-what truth lies in one saying that Etsy Inc (NASDAQ:ETSY) is reminder that Amazon can’t be able to crush anyone it targets?
The turn of events
There has been the misconception that any company that finds itself in the path of Hurricane Bezos ends up torn in shreds.
On Thursday, Etsy posted a 26% gain and it was at that point that market observers reached the agreement that not all companies get impacted negatively. It was the best reminder indeed.
Etsy’s surge pulled along during a moment when it made the prouncement about hiking its transaction fee from a figure of 5% from 3.5%.The rise is going to affect even the shipping costs.
The hike in the fee has witnessed the revenue of Etsy rise a notch higher. It is a move from a range of 22% to 24% to 32% to 34% which points to a significant progress.
Etsy moves up almost 500% from its early-2016 lows and it has also been disclosed that there will be the unveiling of a pair of subscription services which are the Etsy Premium and Etsy Plus and that is in line with the active sellers.
Market analysts say that it has improved the 2018 gross merchandise sales (GMS) guidance from of a range of 16% to 18% to currently stand at 16% to 19%.
Etsy’s hike still reasonable compared to rates of other companies
It goes without saying that a company which for over quite some time was being trampled by Amazon would introduce such a high fee hike. Even with that said, the fee is still less when brought into close comparison to what eBay Inc (NASDAQ:EBAY) and Amazon have been charging.
The recent increase in fees is great news for Etsy’s stock, but it is also important to mention that quite a large number of the site’s vendors have protested the move terming it unfair.