What’s new in Etsy’s AI innovations, App & business model Q3’23
In this series we’re looking at anything new in the Apps, AI innovations & Business Models of the best Digital Technology Companies.
Since Apps & AI innovations are really the frontend to a business model, we always have to look at both: the frontend (the App) and the backend (the business model & why certain innovations & updates have actually occurred).
Here’s what happened lately at Etsy.
1. App UI/UX: Organising product presentation
Etsy changed how they are presenting products on the App from a plain list to horizontal scrolling. Previously their UI would use a flat list that according to their own words displayed “endless versions of virtually the same items”. Now their horizontal scrollers each display one product type related to the search query. So, in essence we have 2 improvements: one is relating to the UI/UX and the other relating to the search results.
2. AI-supported product curation
Related to displaying more relevant search results is also the second innovation. Etsy and other eCommerce platforms know that well-made curations inspire users to shop more (and they may even buy bundles of the curated boards / products). Etsy has long used human curators (including people known from TV / media). But they have also invested in AI capabilities to curate at scale.
3. Improving the Search Experience
Etsy are using different search engine technologies to help users find what they are after. This starts with simple “know-item” search results based on simple keyword matching but also uses other technologies that support explorative search where the user may not be able to express it in text.
4. Increase purchases at the end-of-funnel
Improved post-purchase touchpoints, improved promotions / discounts help to turn buyers to repeat buyers. This includes end-of-funnel (i.e. post checkout) as well as outreach option (i.e. sometime down the track).
5. Gift finder UI/UX
Etsy have introduced a number of UI elements to improve the gift finding user experience knowing that a decent chunk of their customer segments come there to find gifts. The UI elements related to this include: a more prominent gift finder, a deals tab, a gifting landing page and more.
6. Gift registries
Staying at the topic of gifting. Users can now build gift registries for weddings, baby arrivals and other special occasions. Here the user can build a list of gifts that they would like to receive for the upcoming occasion and share with the invitees who then can select. A great way to increase purchase volumes, get new users on the platform and provide a great value proposition.
Learn more
As always, there is more to it than the eye can see. You can check out our videos on What’s new in Etsy’s Business Model …
Learn more about the whole biz model (including finance & economics) watching the entire video or jump to the App & business model update sections if you are more interested in the App updates and what’s behind it.
Learn more about all aspects of Etsy’s biz model here.
