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Etsy’s AI Tools Propel Stock Up 3.54% Despite $270M Volume Ranking 407th Amid Sales and User Declines

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Etsy is enhancing its e-commerce platform with AI-powered tools to boost seller productivity and improve buyer engagement. The new features, including a writing assistant for messages, bulk listing optimization, and AI-generated review highlights, reflect Etsy’s commitment to “responsible innovation.” Amidst declining gross merchandise sales (GMS), CEO Josh Silverman emphasized that AI-driven personalization and app-centric strategies will help revitalize growth, especially ahead of the holiday season. New buyer-facing enhancements like AI-powered search ranking and image-based matching are set to improve product discovery and streamline the purchasing process. These improvements aim to build trust, reduce repetitive tasks for sellers, and foster creativity, emphasizing Etsy’s focus on leveraging technology to address operational challenges. With these updates, Etsy seeks to maintain a competitive edge in the e-commerce market while encouraging a more engaging shopping experience.

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