Etsy launches its app within ChatGPT as it continues its AI push
Overview
Etsy announced Tuesday the launch of its native app within ChatGPT, opening up a new way for shoppers to explore its catalog of over 100 million listings.
Key Features
Conversational Shopping Experience
- Natural Language Queries: Move beyond traditional keyword searches
- Example: Instead of "wooden coffee table," users can ask "Help me find a Mother's Day gift under $100 for my mom who loves gardening"
- Direct Integration: Users can tag @Etsy within ChatGPT prompts
- Browse & Compare: Surface relevant product listings that users can click through to Etsy
Evolution from Previous Integration
- Previous Attempt: Etsy was an early partner in ChatGPT's Instant Checkout integration (September)
- Ended in March: Initiative didn't perform as expected, with low sales volume
- New Approach: Building a native app within ChatGPT instead
Gift Assistant Feature
- Testing beta conversational search experience within its platform
- Acts as a personal shopper for gift discovery
- Offers guided, conversational way to discover ideas and narrow preferences
Broader AI Strategy
For Shoppers
- AI-powered discovery experience with curated collections
- Conversational search capabilities
For Sellers
- Product title and description generation tools
- Writing assistant for drafting buyer messages
- "Designed" label to identify AI-generated content (introduced 2024)
Business Performance
Q1 2026 Earnings Highlights
- Revenue: $631 million (surpassed expectations)
- GMV Growth: Up 6% year over year
- Active Buyers: 86.6 million (first increase in two years)
- Active Sellers: 5.6 million
Strategic Moves
- Sold Depop to eBay for $1.2 billion (February 2026)
- Focus on doubling down on core marketplace
Industry Context
Etsy joins growing list of companies building native apps within ChatGPT, including:
- Angi
- SeatGeek
- Tubi
- Wix
Developers have been able to build apps within the chatbot since October.