Etsy faced challenges in Q2, with gross merchandise sales (GMS) declining 5.4% year-over-year to $2.4 billion and active buyers dropping 4.6% to 87.3 million. In contrast, its U.K.-based Depop marketplace thrived, achieving a 35.3% GMS increase to $249.6 million. Overall, Etsy’s GMS fell 4.8% to $2.8 billion, though revenue rose 3.8% to $672.7 million. CEO Joshua Silverman emphasized the importance of their mobile app, which now represents nearly 45% of total GMS.
To boost performance, Etsy plans to reduce traditional cable advertising and pivot towards streaming and influencer partnerships. The company will also revamp its search ranking algorithms, incorporating generative AI for enhanced personalization and buyer recommendations. Additionally, Etsy is focusing on empowering sellers, aiming to foster stronger connections between sellers and buyers. Following the sale of Reverb on June 2, Etsy is positioning itself for a more engaging shopping experience via improved app functionality and tailored marketing strategies.
Source link
