Etsy is adapting to a generative AI future amid a leadership transition, with CEO Josh Silverman departing and Kruti Goyal taking over in January 2026. The company recently partnered with OpenAI as a live partner for ChatGPT’s instant checkout feature, enabling direct purchases through the AI platform. This collaboration exemplifies Etsy’s aim to enhance the shopper journey and capture high-intent traffic.
Despite a year-over-year decline in gross merchandise sales of 2.4% to $2.43 billion, the company’s recent financial performance reflects improved customer-centric strategies. Etsy’s app is pivotal, contributing 46% of total sales and demonstrating a 20% year-over-year growth in home merchandise sales. To foster customer loyalty, Etsy is testing a revamped Insider Loyalty program, focusing on frequent buyers with incentives like shipping discounts and credits. Etsy aims to enhance engagement and purchasing frequency, solidifying its market position amidst rising competition from platforms like Depop, which saw a 39.4% GMV increase.
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