Etsy launches its app within ChatGPT as it continues its AI push

Etsy has unveiled a revolutionary app embedded within ChatGPT, offering shoppers a fresh approach to navigate its extensive collection of over 100 million items. This innovative feature aims to transcend the traditional keyword search method, allowing users to communicate their needs in everyday language. For example, a user can request, "Help me find a Mother’s Day gift under $100 for my mom who loves gardening," making the search process more intuitive. Currently in beta, this functionality enables users to tag @Etsy within their prompts. The app then presents pertinent product listings that users can explore, compare, and click through to Etsy for more information or to make a purchase. This isn't Etsy's first foray into the ChatGPT environment; back in September, they collaborated with ChatGPT on an Instant Checkout feature, which allowed users to make purchases directly through the chat interface. However, this initiative was discontinued in March due to lower-than-expected sales results. In conjunction with the ChatGPT launch, Etsy is also trialing a beta conversational search tool on its platform, designed specifically to assist users in finding the perfect gifts. This gift assistant functions as a personal shopper, guiding customers through a conversational process to refine their preferences and unveil suitable product options. Etsy's latest moves are part of a broader strategy to leverage artificial intelligence, which includes an AI-driven discovery feature showcasing curated collections and new seller tools. These tools help generate product titles and descriptions, along with a writing assistant for crafting messages to buyers. Additionally, in 2024, Etsy plans to introduce a “Designed” label to clearly identify AI-generated content, enhancing transparency as AI-created artwork gains traction on the platform. This integration announcement follows Etsy's recent Q1 2026 earnings report, which exceeded revenue forecasts at $631 million, with a 6% increase in marketplace gross merchandise sales year over year. Notably, the number of active buyers rose for the first time in two years, reaching 86.6 million, alongside 5.6 million active sellers. Earlier this year, Etsy also disclosed its decision to sell Depop to eBay for $1.2 billion, focusing on reinforcing its core marketplace. With this new ChatGPT integration, Etsy joins a growing roster of businesses developing native apps within the platform, alongside others like Angi, SeatGeek, Tubi, and Wix, since developer access opened last October.