Dive Brief:
- As it looks to invest in the gifting space, Etsy announced on Wednesday a service to curate gift ideas based on a recipient's interest, with the help of artificial intelligence, according to a company blog post.
- Upon entering a few details about the gift recipient, including their relationship to the gift giver, the gifting occasion and some of the recipient’s interests, Etsy’s “Gift Mode” interactive hub combines human curation and machine learning to provide gift options based on more than 200 recipient “personas,” like The Music Lover and The Adventurer.
- Gift givers can also make a “gift teaser” for the recipient that includes a gift note, tracking information and a sneak peek at the gift, or leave it as a surprise. Customers can also pick when to send their teaser.
Dive Insight:
Etsy wants to make the marketplace a gifting destination for shoppers. According to the company, only 12% of U.S. shoppers named Etsy as a place to shop for gifts. Etsy wants to change that and with its new service, the company said it hopes users feel their gift recommendations were “made just for them and their recipients.”
“At the end of the day, gifting is about shopping for a person not a thing, and Etsy is the expert in keeping commerce human,” Etsy CEO Josh Silverman said in a statement. “I have incredible conviction that we are tapping into a truly authentic space where Etsy can have a real impact.”
Etsy plans to continue expanding Gift Mode and add new features. The company said it will invest in marketing Gift Mode, including in TV ads for the NFL playoffs and the Super Bowl.
Etsy’s pursuit to become a gifting destination for shoppers signals a new strategy from the company during a time of restructuring. In December 2023, Etsy laid off 11% of its workforce, about 225 employees, as part of a restructuring plan. As part of the plan, Etsy’s chief marketing officer and chief human resources officer also left the company.
