Although (NASDAQ: ETSY) has produced a respectable return of 111% over the past five years, its shares are down an eye-watering 69% from their Nov. 2021 all-time high. This business boomed during the depths of the pandemic, only to hit a rough patch in 2022 that caused a noticeable slowdown for the online marketplace. 

Shares are currently trading at a price-to-earnings ratio of 36, about half the trailing-five-year average, which is certainly compelling for Etsy bulls. But before buying the business, here are three things the smartest investors know about this top e-commerce stock. 

This company is not like a traditional retailer because Etsy doesn't own any inventory itself. And this has some positive effects throughout the business. 

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Source Fool.com