Etsy Inc. announced upgrades to its online search and discovery experience because it navigates slowing merchandise sales and increasing competition.
The updates, announced Aug. 28, are designed to make it easier for shoppers to seek out high-quality items and explore a broader range of products on the creative marketplace, said Nick Daniel, the chief product officer at Etsy, in a company blog post. Moreover, he said, Etsy launched a recent webpage offering sellers suggestions to enhance their search rankings.
“We consider the work we have now done to enhance search and discovery, paired with a more data-empowered community of small businesses, will help us higher match our buyers to sellers that deliver what they’re on the lookout for, with an experience they will trust,” Daniel said.
Etsy is No. 20 in Digital Commerce 360’s Global Online Marketplaces Database. The database ranks the 100 largest such marketplaces by third-party gross merchandise value (GMV). Digital Commerce 360 projects Etsy’s total GMV in 2024 will reach $11.94 billion.
Etsy total gross merchandise value (GMV) by 12 months
Elevating Etsy search and discovery
Earlier this 12 months, Etsy began refining the way it determines search rankings, placing greater emphasis on listing quality. This includes taking a look at aspects like detailed descriptions, high-quality photos and a seller’s customer support track record, in response to Daniel.
Etsy’s goal is to make it easier for buyers to seek out products they will trust without sifting through lots of of listings, he said. Daniel noted that the corporate wants search results to feature “the very best quality options, from a spread of reliable sellers.”
The changes are already paying off. A 30-day experiment conducted in July and August showed an increase in four- and five-star reviews across the platform, together with fewer refund requests — clear signs that shoppers are more satisfied with their experiences on Etsy, in response to Daniel.
Advantages for Etsy sellers
Etsy can also be improving the shopping experience by surfacing a wider range of products from more sellers. These adjustments will be particularly helpful when shoppers aren’t quite sure what they’re on the lookout for, he said.
As an illustration, a seek for “Halloween accessories” won’t just show ghost earrings but will include a spread of things, from Halloween-themed hair clips to spooky home decor.
The changes are benefiting sellers, as well. Serving up a wider array of listings resulted in 70% of outlets on Etsy having more visibility in search, in response to an organization experiment. The figure represents shops that received no less than one impression, though the corporate didn’t specify the dates of the experiment.
To present sellers more transparency and control over search visibility, Etsy launched the Etsy Search Visibility Page on Aug. 28. The page offers tips about improving search rankings, with insights on listing image quality, return policies, response times, and shipping prices. Sellers can even track the impact of their changes in real time.
Addressing market challenges
In its fiscal Q2 ending June 30, 2024, Etsy reported its third consecutive decline in gross merchandise sales (GMS), totaling $2.95 billion, down 2.1% from $3 billion last 12 months.
Acknowledging the “difficult environment” for its style of goods, CEO Josh Silverman stressed that the corporate is targeted on reigniting growth within the Etsy marketplace and expanding its market share, as competitors like Temu and Shein put pressure on established players. Moreover, last 12 months, craft retailer Michaels launched its MakerPlace marketplace.
In Q2, Etsy refined its seller standards to enhance the standard of things on the platform and introduced features equivalent to lists, reminders, occasion pages, and gift teaser videos. Its “Made for You” microsite, which launched globally in June, has already attracted lots of of hundreds of users, the corporate said.
Furthermore, this month, Etsy is launching a paid Insider membership program, starting with a closed beta for select U.S. buyers. This system, called Etsy Insider, offers perks equivalent to free shipping, special offers, donation boosts, and a birthday bonus.
The corporate has made notable strides in enhancing the shopper experience, particularly in gifting, which saw a 4% year-over-year GMS growth. Gifting now represents about 27% of Etsy’s GMS and is outperforming another online gift-focused competitors.
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