E-commerce stocks have had a relatively easy time growing this year despite the recent economic pressures that have put many consumers on the back foot. Part of this is the sheer diversity of products and price points made available by online stores since there's no physical location to maintain and sell from.

Etsy's gross merchandise sales growth was once again negative in the latest quarter. As a two-sided platform, Etsy benefits from network effects.

Recent volatility in the stock markets has allowed investors to buy discounted quality stocks you couldn't find earlier in 2024. For example, the S&P 500 lost 8.5% from its 52-week high of 5,669.67 in mid-July to its Aug. 5 closing price of 5,186.33.

The stock market has enjoyed a nice rally for most of 2024 after a strong recovery in 2023. However, equities are showing some weakness, with many tech companies in the middle of corrections.

The S&P 500 has been a common choice for passive investors. It has delivered steady returns over the years, especially for investors who withstood market corrections and continued to make regular investments.

The e-commerce scene has faced considerable challenges in recent years. With an inflation-hit consumer inclined to put their wallets away when it comes to bigger-ticket discretionary items, e-commerce firms have had to ride out the harsh waves in recent quarters.

Inflation has been a prevailing issue for consumers that's been reflected in their discretionary spending habits, rippling across the restaurant services and retail landscapes. Etsy (ETSY) CEO Josh Silverman joins Market Domination to give insight into the state of the consumer, the website's second quarter earnings beat, and how it may operate moving forward.

Amazon.com (AMZN) and Alibaba (BABA) usually dominate the headlines in the e-commerce space, which is no surprise considering their combined market cap surpasses $2 billion.

Etsy shares fell after the e-commerce company reported second-quarter results. While gross merchandise sales for the period came ahead of expectations, Morgan Stanley said it was skeptical on the pacing of the metric's acceleration.

Net income fell to $53.0 million due to a $7.2 million retroactive non-income tax expense, impacting margins. Revenue increased 3.0% to $647.8 million, driven by marketplace and payments revenue, aligning with expectations.

ETSY's second-quarter results reflect strength across active sellers and reactivated buyers. Also, accelerating marketplace revenues remains a plus.

As Etsy sees its sales slip, the eCommerce marketplace is gearing up to launch a loyalty program in an effort to drive greater spending and frequency among consumers who demand to be rewarded for their purchases.