Etsy Aims to Get More Personal and Boost Business With AI

Etsy is leveraging artificial intelligence to build detailed shopper profiles, tracking whether customers buy for themselves or as gifts, and adapting to life events like moving or back-to-school. This effort aims to restore the personal connection lost in recent years as the platform scaled. CFO Lanny Baker said the company was 'somewhat clumsy' in personalization before but is now dedicating resources to improve effectiveness.

The initiative has contributed to a turnaround: Etsy Marketplace’s gross merchandise sales reached $2.58 billion in the latest quarter, up 7.5% year-over-year, prompting an upgraded full-year outlook to mid-single-digit growth from low-single-digit. AI now powers over 70% of shopper profiles, with plans to expand coverage. Etsy is also integrating with AI platforms like Chat GPT for advertising and instant checkout within chatbots, targeting younger users early to build long-term loyalty.

Despite higher average order values from premium items and tariff-related price increases, demand has held strong. To focus on its core marketplace, Etsy sold Depop to eBay and cut ~12% of its workforce, with reductions aimed at improving customer experience by reducing internal barriers and hiring for search optimization. While recent growth is encouraging, analysts caution that a few quarters of momentum don’t guarantee long-term trends, though signs point to durability.

تستخدم Etsy الذكاء الاصطناعي لبناءProfiles متسوقين مفصلة، تتبع ما إذا كان العملاء يشترون لأنفسهم أو كهدايا، والتكيف مع أحداث الحياة مثل الانتقال أو العودة للمدرسة. يهدف هذا الجهد إلى استعادة الاتصال الشخصي الذيLost في السنوات الأخيرة كما توسع المنصة. قال المدير المالي Lanny Baker إن الشركة كانت 'بعض الشيء متكلفة' في التخصيص من قبل لكنها الآن تخصص موارد لتحسين الفعالية. ساهمت هذه المبادرة في تحول: وصلت مبيعات السلع gross merchandise sales الخاصة بـ Etsy Marketplace إلى 2.58 مليار دولار في الربع الأخير، بزيادة 7.5% على أساس سنوي، مما prompted an upgraded full-year outlook to mid-single-digit growth from low-single-digit. AI now powers over 70% of shopper profiles, with plans to expand coverage. Etsy are also integrating with AI platforms like Chat GPT for advertising and instant checkout within chatbots, targeting younger users early to build long-term loyalty.

Despite higher average order values from premium items and tariff-related price increases, demand has held strong. To focus on its core marketplace, Etsy sold Depop to eBay and cut ~12% of its workforce, with reductions aimed at improving customer experience by reducing internal barriers and hiring for search optimization. While recent growth is encouraging, analysts caution that a few quarters of momentum don’t guarantee long-term trends, though signs point to durability.

Etsy is leveraging artificial intelligence to build detailed shopper profiles, tracking whether customers buy for themselves or as gifts, and adapting to life events like moving or back-to-school. This effort aims to restore the personal connection lost in recent years as the platform scaled. CFO Lanny Baker said the company was 'somewhat clumsy' in personalization before but is now dedicating resources to improve effectiveness.

The initiative has contributed to a turnaround: Etsy Marketplace’s gross merchandise sales reached $2.58 billion in the latest quarter, up 7.5% year-over-year, prompting an upgraded full-year outlook to mid-single-digit growth from low-single-digit. AI now powers over 70% of shopper profiles, with plans to expand coverage. Etsy is also integrating with AI platforms like Chat GPT for advertising and instant checkout within chatbots, targeting younger users early to build long-term loyalty.

Despite higher average order values from premium items and tariff-related price increases, demand has held strong. To focus on its core marketplace, Etsy sold Depop to eBay and cut ~12% of its workforce, with reductions aimed at improving customer experience by reducing internal barriers and hiring for search optimization. While recent growth is encouraging, analysts caution that a few quarters of momentum don’t guarantee long-term trends, though signs point to durability.

Etsy exploite l'intelligence artificielle pour créer des profils détaillés d'acheteurs, suivant si les clients achètent pour eux-mêmes ou comme cadeaux, et s'adaptant aux événements de vie comme le déménagement ou la rentrée scolaire. Cet effort vise à restaurer la connexion personnelle perdue ces dernières années alors que la plateforme s'est développée. Le directeur financier Lanny Baker a déclaré que l'entreprise était 'un peu maladroite' en matière de personnalisation auparavant, mais qu'elle consacre maintenant des ressources pour améliorer l'efficacité.

L'initiative a contribué à un retournement de situation : les ventes brutes de marchandises de Etsy Marketplace ont atteint 2,58 milliards de dollars au dernier trimestre, soit une augmentation de 7,5% sur base annuelle, entraînant une mise à jour de la prévision annuelle à une croissance à chiffre moyen depuis un chiffre bas. L'IA alimente désormais plus de 70% des profils d'acheteurs, avec des plans pour étendre la couverture. Etsy intègre également des plateformes d'IA comme Chat GPT pour la publicité et le paiement instantuel dans les chatbots, ciblant les jeunes utilisateurs dès le début pour fidéliser à long terme.

Malgré des valeurs moyennes de commande supérieures provenant d'articles premium et d'augmentations de prix liées aux droits de douane, la demande est restée forte. Pour se concentrer sur son marché principal, Etsy a vendu Depop à eBay et a réduit d'environ 12% de sa main-d'œuvre, les réductions visant à améliorer l'expérience client en réduisant les barrières internes et en recrutant pour l'optimisation des recherches. Bien que la croissance récente soit encourageante, les analystes mettent en garde le fait que quelques trimestres d'élan ne garantissent pas les tendances à long terme, bien que les signes indiquent la durabilité.

Etsy is leveraging artificial intelligence to build detailed shopper profiles, tracking whether customers buy for themselves or as gifts, and adapting to life events like moving or back-to-school. This effort aims to restore the personal connection lost in recent years as the platform scaled. CFO Lanny Baker said the company was 'somewhat clumsy' in personalization before but is now dedicating resources to improve effectiveness.

The initiative has contributed to a turnaround: Etsy Marketplace’s gross merchandise sales reached $2.58 billion in the latest quarter, up 7.5% year-over-year, prompting an upgraded full-year outlook to mid-single-digit growth from low-single-digit. AI now powers over 70% of shopper profiles, with plans to expand coverage. Etsy is also integrating with AI platforms like Chat GPT for advertising and instant checkout within chatbots, targeting younger users early to build long-term loyalty.

Despite higher average order values from premium items and tariff-related price increases, demand has held strong. To focus on its core marketplace, Etsy sold Depop to eBay and cut ~12% of its workforce, with reductions aimed at improving customer experience by reducing internal barriers and hiring for search optimization. While recent growth is encouraging, analysts caution that a few quarters of momentum don’t guarantee long-term trends, though signs point to durability.

Etsy is leveraging artificial intelligence to build detailed shopper profiles, tracking whether customers buy for themselves or as gifts, and adapting to life events like moving or back-to-school. This effort aims to restore the personal connection lost in recent years as the platform scaled. CFO Lanny Baker said the company was 'somewhat clumsy' in personalization before but is now dedicating resources to improve effectiveness.

The initiative has contributed to a turnaround: Etsy Marketplace’s gross merchandise sales reached $2.58 billion in the latest quarter, up 7.5% year-over-year, prompting an upgraded full-year outlook to mid-single-digit growth from low-single-digit. AI now powers over 70% of shopper profiles, with plans to expand coverage. Etsy is also integrating with AI platforms like Chat GPT for advertising and instant checkout within chatbots, targeting younger users early to build long-term loyalty.

Despite higher average order values from premium items and tariff-related price increases, demand has held strong. To focus on its core marketplace, Etsy sold Depop to eBay and cut ~12% of its workforce, with reductions aimed at improving customer experience by reducing internal barriers and hiring for search optimization. While recent growth is encouraging, analysts caution that a few quarters of momentum don’t guarantee long-term trends, though signs point to durability.