Etsy introduces an AI-driven gift suggestion platform
New & Improved Etsy: A Personalized Gifting Experience
Say goodbye to gift-buying frustrations! Etsy, the beloved marketplace, is stepping up its game by introducing a new feature that takes the hassle out of finding the perfect present. On Wednesday, Etsy announced Gift Mode, a service that curates gifts based on recipients' interests, all thanks to artificial intelligence (AI).
So, how does it work? Simply enter a few details about the gift recipient, like their relationship to the giver, the occasion, and some of their favorite things. Etsy's interactive hub combines human curation and machine learning to deliver gift options for over 200 unique "personas," like The Music Lover or The Adventurer.
But that's not all! Gift givers can also create a "gift teaser" for the recipient, complete with a personal note, tracking information, and a sneak peek at the surprise. Or, opt for the element of surprise and sit back and wait! Customers can also choose when to send their teaser.
Etsy's ultimate goal is to make the platform a go-to destination for shoppers seeking unique gifts. Currently, only 12% of U.S. shoppers consider Etsy a place for gifts. To change that, the company plans to continue expanding Gift Mode, adding new features, and marketing it, including during high-profile events like the NFL playoffs and the Super Bowl.
Gift Mode isn't Etsy's only new endeavor. In December 2023, the company went through a restructuring phase, laying off 11% of its workforce, about 225 employees. As part of the plan, Etsy's chief marketing officer and chief human resources officer also left the company.
However, this restructuring won't slow down Etsy's AI-powered aspirations. The company is focusing on AI-driven collections, designed to increase engagement and potentially generate $1 billion in revenue. Additionally, Etsy is working on member programs, search and UX upgrades, and expanding ancillary services to enhance profitability.
Etsy is doubling down on its AI-human hybrid curation and gifting-focused UX enhancements to secure its place in a competitive e-commerce landscape. So, whether you're shopping for a music lover, an adventurer, or anyone in between, Etsy's got you covered!
- The new feature on Etsy, Gift Mode, utilizes artificial intelligence (AI) to curate gifts based on recipients' interests.
- Rather than browse through numerous options, users can now enter details about the recipient and receive personalized gift suggestions, such as for The Music Lover or The Adventurer.
- To enhance the gifting experience, Etsy allows users to create a "gift teaser" with a personal note, tracking information, and a sneak peek, or keep it a surprise.
- With the focus on making Etsy a premier destination for unique gifts, the company is expanding Gift Mode, marketing it during high-profile events, and also exploring AI-driven collections, member programs, search and UX upgrades, and ancillary services.
- Despite a recent restructuring phase that involved layoffs and leadership changes, Etsy remains committed to its AI-powered aspirations in the competitive e-commerce landscape, providing a personalized gifting experience for all interested recipients on the platform.
