Alibaba vs Etsy: Revenue, Profit and Business Model
Alibaba had ~$142.3B of annual revenue in FY2026 and ~$14.4B of net income. Etsy had $2.9B of annual revenue in FY2025.
Latest financial snapshot
Financial summary
Alibaba
Revenue rose from ~$22 billion (RMB158.3 billion) in FY2017 to ~$142 billion (RMB1.024 trillion) in FY2026. Net income was ~$14.4 billion (RMB103.6 billion) in FY2026, down from ~$17.5 billion (RMB126.0 billion) in FY2025. Alibaba reports on a March 31 fiscal year and invests heavily in commerce, cloud and AI infrastructure. Alibaba Group is a Chinese multinational technology titan with a market valuation typically hovering around $200 billion.
Etsy
Etsy earns money from fees on a marketplace it does not stock, so gross margin stays near 72% (FY2025 gross profit was $2.07B on $2.88B of revenue). The pandemic pulled demand forward: GMS more than doubled to $10.3B in 2020, then consolidated GMS declined from $13.3B in 2022 to $11.9B in 2025. Revenue held up only because the take rate rose from 22.3% to 24.2% as sellers paid more for advertising and payments. FY2025 net income fell 46.3% to $163.0M as operating expenses rose 8.8%. In 2026 the picture improved: Q2 revenue was $668M, adjusted EBITDA was $195M (a 29.2% margin), and Etsy guided to mid-single-digit full-year GMS growth. Etsy, Inc. is a major American e-commerce company focused on handmade and vintage items, maintaining a market valuation generally exceeding $7 billion.
Revenue and profit by year
Alibaba
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2026 | ~$142.3B | ~$14.4B | 10.1% | +2.7% | Source |
| FY2025 | ~$138.5B | ~$17.5B | 12.6% | +5.9% | Source |
| FY2024 | ~$130.8B | ~$9.9B | 7.6% | +8.3% | Source |
| FY2023 | ~$120.7B | ~$9.1B | 7.5% | +1.8% | Source |
| FY2022 | ~$118.6B | ~$6.5B | 5.5% | +18.9% | Source |
| FY2021 | ~$99.7B | ~$19.9B | 20.0% | +40.7% | Source |
| FY2020 | ~$70.8B | ~$19.5B | 27.5% | +35.3% | Source |
| FY2019 | ~$52.4B | ~$11.2B | 21.3% | +50.6% | Source |
| FY2018 | ~$34.8B | ~$8.5B | 24.5% | +58.1% | Source |
| FY2017 | ~$22B | ~$6.1B | 27.6% | — | Source |
Etsy
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $2.9B | — | — | +2.7% | Source |
| FY2024 | $2.8B | — | — | +2.2% | Source |
| FY2023 | $2.7B | — | — | +7.1% | Source |
| FY2022 | $2.6B | — | — | +10.2% | Source |
| FY2021 | $2.3B | $493.5M | 21.2% | +35.0% | Source |
| FY2020 | $1.7B | $349.2M | 20.2% | +110.9% | Source |
| FY2019 | $818.4M | $95.9M | 11.7% | +35.6% | Source |
| FY2018 | $603.7M | $77.5M | 12.8% | +36.8% | Source |
| FY2017 | $441.2M | $81.8M | 18.5% | +20.9% | Source |
| FY2016 | $365M | -$29.9M | -8.2% | — | Source |
Where the revenue comes from
Alibaba
- China commerce
Not formally reported
Alibaba earns revenue through China commerce.
- international digital commerce
Not formally reported
Alibaba earns revenue through international digital commerce.
- cloud intelligence
Not formally reported
Alibaba earns revenue through cloud intelligence.
- logistics services
Not formally reported
Alibaba earns revenue through logistics services.
- local services and digital media
Not formally reported
Alibaba earns revenue through local services and digital media.
Etsy
- Marketplace Revenue~69.6%
Marketplace revenue includes the 6.5% transaction fee, $0.20 listing fees, and Etsy Payments processing fees. It totaled $2,007.2 million in FY2025, down 0.7% from $2,020.7 million in FY2024, as lower GMS offset fee and payments gains.
- Services Revenue~30.4%
Services revenue includes Etsy Ads (on-site, cost-per-click), Offsite Ads fees and shipping labels. It totaled $876.3 million in FY2025, up 11.3% from $787.6 million in FY2024, and drove all of the year's revenue growth.
- Other Revenue
Not separately reported
Etsy does not break out a separate "other" line in its FY2025 results; total revenue is reported as Marketplace plus Services. Any residual items are immaterial.
- Subsidiary Marketplace Revenue (Discontinued)
~0% (divested)
Reverb was included until its June 2, 2025 sale. Depop is reported as discontinued operations in 2026 and was sold to eBay on July 30, 2026. In FY2025 Depop generated about $1.07 billion of GMS.
Business model and strategy
Alibaba
How it makes money
Alibaba earns revenue from customer-management services and commissions on its China commerce marketplaces, direct sales and logistics services in international commerce, cloud products and services, Cainiao logistics, local services, and digital media. Taobao and Tmall primarily connect merchants with consumers rather than operating only as first-party retailers.
Growth strategy
Facing intense regulatory scrutiny and fierce domestic competition, Alibaba's growth strategy recently underwent a large structural overhaul. They announced a plan to split the empire into six separate, independent business groups (like Cloud, E-commerce, and Logistics), allowing each to operate faster and potentially seek their own IPOs.
Competitive advantage
Alibaba's primary moat was its large network effect within China; virtually every merchant had to be on Taobao because that's where all the consumers were, and vice versa. their proprietary logistics network (Cainiao) and deep integration with Alipay created a frictionless ecosystem for Chinese consumers.
Etsy
How it makes money
Etsy operates a pure B2C and C2C two-sided marketplace model. They do not own warehouses or delivery trucks. They simply provide the software platform connecting buyers and sellers. The core revenue engine relies entirely on 'Take Rates'. The seller pays a fee just to list an item, and then Etsy takes a large cut (often over 6.5%) of the final sale price, plus payment processing fees.
Growth strategy
With growth in its core market flat, Etsy is concentrating on search and on removing mass-produced goods. It has more than 100 million unique items, which makes searching hard, so it is investing in AI to improve search relevance. It is also removing sellers of cheap mass-produced items, often dropshipped from China and presented as handmade, to protect the brand's reputation for genuine handmade goods.
Competitive advantage
Etsy's advantage is a recognizable brand and a two-sided network. Buyers come because the handmade and vintage sellers are there, and sellers list because the buyers are there. A new competitor would start with neither side, which makes the handmade category hard to enter.
Questions about Alibaba vs Etsy
Which company has higher revenue — Alibaba Group Holding Limited or Etsy, Inc.?
Alibaba Group Holding Limited had ~$142.3B (FY2026), while Etsy, Inc. had $2.9B (FY2025). By latest annual revenue, Alibaba Group Holding Limited is the larger business, with Etsy, Inc. showing a smaller revenue base. Note: these are from different fiscal years and are not a direct like-for-like comparison.
What is the market cap of Alibaba Group Holding Limited vs Etsy, Inc.?
Alibaba Group Holding Limited's market capitalisation stands at $266.6B, while Etsy, Inc.'s is $6.7B. Alibaba Group Holding Limited carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to Etsy, Inc..
How does revenue per employee compare for Alibaba Group Holding Limited and Etsy, Inc.?
Alibaba Group Holding Limited has $1.08M / employee in revenue per employee, while Etsy, Inc. has $1.20M / employee. Headcounts may use different dates, so the ratio alone does not establish which business operates more efficiently.
How do Alibaba Group Holding Limited and Etsy, Inc. make money?
Alibaba Group Holding Limited and Etsy, Inc. generate revenue in fundamentally different ways. Alibaba Group Holding Limited: Alibaba earns revenue from customer-management services and commissions on its China commerce marketplaces, direct sales and logistics services in international commerce, cloud products and services, Cainiao logistics, local services, and digital media. Etsy, Inc.: Etsy operates a pure B2C and C2C two-sided marketplace model.
Which company is valued higher relative to revenue — Alibaba Group Holding Limited or Etsy, Inc.?
On a price-to-sales (P/S) basis, Alibaba Group Holding Limited trades at 1.9x P/S and Etsy, Inc. at 2.3x P/S. Etsy, Inc. commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to Alibaba Group Holding Limited. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is Alibaba Group Holding Limited bigger than Etsy, Inc.?
By last reported revenue, Alibaba Group Holding Limited (~$142.3B (FY2026)) is the larger company compared to Etsy, Inc. ($2.9B (FY2025)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Alibaba vs Etsy overview