• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

2

Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic

3

Ray Dalio says the U.S. just had its 'Suez moment'—and history says what comes next could end an empire

1

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

2

Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic

3

Ray Dalio says the U.S. just had its 'Suez moment'—and history says what comes next could end an empire
TechEtsy

How selling $133 million worth of face masks in April helps Etsy long term

Phil Wahba
By
Phil Wahba
Phil Wahba
Senior Writer
Down Arrow Button Icon
Phil Wahba
By
Phil Wahba
Phil Wahba
Senior Writer
Down Arrow Button Icon
May 14, 2020, 3:30 PM ET
Add Fortune on Google for similar content.

Subscribe to How To Reopen, our weekly newsletter on what it takes to reboot business in the midst of a pandemic.

In the early morning of April 2, as Josh Silverman started his workday, the Etsy chief executive was amazed to see a sudden surge in traffic to the handcraft e-commerce site on a run-of-the-mill Thursday.

One thing in particular was driving traffic: Searches for “face masks” rose 100-fold in a matter of hours that morning, hitting nine searches a second at one point.

While Etsy’s sellers had been offering face masks for several weeks since the start of the COVID-19 pandemic, media reports surfaced that morning suggesting that the U.S. government was going to change its stance and recommend Americans wear face masks in public settings to help contain the spread.

“It happened like an explosion. It was instant,” Silverman tells Fortune. Some sellers were moving the entire previous month’s orders in just an hour. But the surge in searches didn’t come without challenges.

For one thing, he wanted to be sure that sellers could fill those orders, lest it lead to a bad experience for someone new to the site, losing Etsy a chance to make a good first impression.

What’s more, when Silverman typed “face masks” into the search engine, results were yielding a lot of Halloween masks and other irrelevant products. “That’s not what anyone thinks of as face masks in this moment,” he says.

By 8:30 a.m. that morning, he and his team were doing triage by hand of the top 5,000 top results, an immediate fixing of its algorithms. They placed vendors who really sold cloth face masks first in the ranking and redirected shoppers to the sites of sellers who confirmed they could handle the orders as a way to redistribute demand, thereby retraining its search engine.

Over the next 48 hours, Etsy recruited more sellers to make masks, helping them figure out how to get more fabric and set up their shops quickly. “In a short time, we stood up a midsize company within Etsy,” says Silverman.

Etsy-Infusion-Face-Masks
The contoured face mask made by Infusion on Etsy is a made-to-order bestseller.
Courtesy of infusion/Etsy

This was all much more labor intensive than how Etsy would normally operate. But the payoff was undeniable: In April, Etsy sold 12 million masks worth $133 million, or one-sixth of its monthly tally, and Silverman says demand is holding up well.

What’s more, sales on the Etsy site of items other than masks rose 79% last month, despite a drop in wedding-themed gifts during what is normally a peak time for that category. Etsy was already doing well, though not quite that well: In the first quarter of 2020, sellers sold $1.35 billion worth of goods on its sites, up 32.2% from a year earlier.

A bonanza of new customers

There’s an important, longer-term upside for Etsy: In April alone, it won over 4 million new customers and got back 2.5 million others who hadn’t used the site in at least a year. (At the start of 2020, it had 46.4 million active buyers and 2.7 million sellers.)

Wall Street has noticed. Shares hit a 52-week low on March 16, coincidentally when the lockdown started in major cities like New York as investors worried about the coming economic downturn. But in the two months since, Etsy shares have risen 157%, making the company worth almost $10 billion.

Silverman admits he was not sure how people were going to behave as lockdowns began. But he thinks people wanting to support independent businesses and buy one-of-kind items—or at least those that are not mass-produced—has a lot to do with Etsy’s success.

And the influx of new shoppers has been a rare opportunity for Etsy to wow new customers. “It was important that it be a good experience,” says Silverman.

Initial data suggests many are sticking around: Some 32% of new customers who bought a mask last month bought another item within two weeks. And Silverman says on-time shipment statistics and call-center volume suggest the customer experience has been good.

Wall Street analysts seem to agree with the thesis that Etsy will hang on to its new customers once lockdowns end and other retailers reopen their stores. “Even for the existing buyers, they may be exposed to the variety and selection of products available, which could induce them to come to the platform and buy more than just once a year,” Deutsche Bank analyst Kunal Madhukar wrote in a research note.

Since Silverman took the helm three years ago, he has sought to professionalize a site that often felt like a flea market. That has included vastly improving its search function—something he says is hard, considering that Etsy sells 60 million unique items at any given time. And occasionally it has meant friction with sellers, either from higher fees or pushing them to offer fast shipping.

But at a time when eBay has floundered and “re-commerce” sites are on the rise, Etsy wants to take advantage of every chance it gets to attract new customers who might not have thought of it much, especially as shopping behavior is in flux.

“For anything you need, the habit for so many people is Amazon, Amazon, Amazon,” Silverman says. “If I could just get them to pause for a split second and think to themselves, ‘Where else could I get something similar?,’ Etsy is going to come to mind a lot of the time.”

And millions of mask buyers are now at least more aware of Etsy.

About the Author
Phil Wahba
By Phil WahbaSenior Writer
LinkedIn iconTwitter icon

Phil Wahba is a senior writer at Fortune primarily focused on leadership coverage, with a prior focus on retail.

See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

fire
Europeclimate change
Greece tackles climate change wildfire risk with satellite network that can spot a blaze the size of a parking space
By Derek Gatopoulos and The Associated PressJune 26, 2026
1 hour ago
AI boom may be on its last legs amid stock volatility and dash for cash—but will go out in a blaze of glory with ‘blow-off phase’ before bubble pops
AItech stocks
AI boom may be on its last legs amid stock volatility and dash for cash—but will go out in a blaze of glory with ‘blow-off phase’ before bubble pops
By Jason MaJune 26, 2026
2 hours ago
m
LawMeta
‘Careless People’ author claims Meta surveilled her for a year to enforce her silence
By Barbara Ortutay and The Associated PressJune 26, 2026
2 hours ago
apple
Big TechApple
Apple blames inflationary effect of AI for price hikes: ‘We have never seen a component price increase this much’
By Barbara Ortutay and The Associated PressJune 26, 2026
3 hours ago
John Collison, president and co-founder of Stripe
SuccessJobs
Stripe cofounder says Gen Z will need two college majors to compete thanks to AI—and investing legend Charlie Munger called it first
By Emma BurleighJune 26, 2026
3 hours ago
young woman looking frustrated while working on her laptop at home
SuccessCareers
Gen Z’s hiring hell is real: 1 in 3 employers admit they’re replacing entry-level roles with AI—and tech and manufacturing jobs are most at risk
By Preston ForeJune 26, 2026
3 hours ago

Most Popular

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
Success
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
By Sydney LakeJune 25, 2026
1 day ago
Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic
Success
Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic
By Orianna Rosa RoyleJune 24, 2026
2 days ago
Ray Dalio says the U.S. just had its 'Suez moment'—and history says what comes next could end an empire
Economy
Ray Dalio says the U.S. just had its 'Suez moment'—and history says what comes next could end an empire
By Nick LichtenbergJune 26, 2026
11 hours ago
Trump turns on Big Oil donors who spent nearly $100 million to get him elected—now he wants the DOJ to investigate them for price gouging
Economy
Trump turns on Big Oil donors who spent nearly $100 million to get him elected—now he wants the DOJ to investigate them for price gouging
By Tristan BoveJune 25, 2026
22 hours ago
The bond market knows something about the $39 trillion national debt that Washington doesn’t
Economy
The bond market knows something about the $39 trillion national debt that Washington doesn’t
By Eva RoytburgJune 25, 2026
21 hours ago
Current price of oil as of June 25, 2026
Personal Finance
Current price of oil as of June 25, 2026
By Joseph HostetlerJune 25, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.