Insights from Etsy CEO Josh Silverman - December 2017

Insights from Etsy CEO Josh Silverman - December 2017

Table of Contents:

1. Introduction
2. Sales Growth Progress
3. Improvements in Search and Discovery
4. Context-Specific Ranking (CSR)
5. Improving Search Relevancy
6. Using Data and Testing for Better Buyer Experience
7. Sales and Promotions for Holiday Season
8. Site-Wide Sales and Coupon Tools
9. Holiday Gift Guide
10. Extending the Holiday Shopping Season on Etsy
11. New Features for Sellers
12. Conclusion

Improving Sales Growth and Search Experience on Etsy

Introduction:

Etsy, an online marketplace for handmade and vintage goods, continues to make progress in accelerating sales growth for sellers. In this update, CEO Josh shares insights into the improvements made in search and discovery on the platform. This article will delve into the progress Etsy has made in recent months and highlight key features and tools designed to help sellers have a successful holiday season.

1. Sales Growth Progress:

Etsy's focus on doing fewer things better has yielded positive results. In the third quarter, the platform experienced a 13% increase in sales growth compared to the previous quarter. This marks a reversal of the sales deceleration seen in previous years. The progress made in a short amount of time is a testament to Etsy's commitment to driving growth for sellers.

2. Improvements in Search and Discovery:

A significant priority for Etsy has been enhancing the search and discovery experience for buyers. The marketplace's strength lies in the diversity of the 45 million items offered by sellers. To ensure shoppers find the most relevant items, Etsy introduced a major improvement called "context-specific ranking" (CSR). CSR personalizes the search experience by using factors such as the shopper's preferences and time of day to rank search results in real-time. This personalized approach delivers more relevant results and increases sales.

3. Context-Specific Ranking (CSR):

CSR has already proven to be successful in driving sales. By personalizing search results, buyers no longer see the same results for every search term. In contrast to the previous search algorithm, which prioritized titles, CSR focuses on understanding the item based on the information provided in the listings. This change reduces the need for continuous refinement of SEO terms and allows sellers to include all relevant data about their products when listing them.

4. Improving Search Relevancy:

Etsy's commitment to improving search extends beyond CSR. The platform continues to invest in understanding the unique nature of each item and presenting the most relevant and diverse results. Through ongoing enhancements, Etsy aims to ensure that items appearing in search results align with the individual preferences of each shopper.

5. Using Data and Testing for Better Buyer Experience:

Etsy harnesses the power of data and testing to drive improvements in the buyer experience. While not every test is successful, numerous changes implemented since May have had a positive impact on sales. Etsy shares information about these experiments on a regularly updated central location. Sellers can access this page to stay informed about ongoing tests and their results.

6. Sales and Promotions for Holiday Season:

Etsy has been dedicated to helping sellers have a successful holiday season. One way this has been achieved is through sales and promotions. Etsy introduced a tool that simplifies the process of offering sales, coupons, and free shipping promotions. The platform also supports sellers with site-wide sale experiences and other incentives to attract buyers.

7. Site-Wide Sales and Coupon Tools:

By highlighting shop reviews more prominently on listing pages, Etsy aimed to increase sales by instilling buyer trust. The results showed a significant increase in the number of buyers making a purchase compared to the older design. This demonstrates Etsy's commitment to using data to improve the buyer experience and drive more sales.

8. Holiday Gift Guide:

To simplify the gift-finding process for holiday shoppers, Etsy launched a holiday gift guide. This guide goes beyond the traditional gift ideas and offers unique collections tailored to various recipients. From aspiring chefs to outdoor enthusiasts, shoppers can explore collections curated specifically for their loved ones.

9. Extending the Holiday Shopping Season on Etsy:

Etsy recognizes the need to cater to last-minute shoppers and extend the holiday shopping season. To address concerns about gifts arriving in time, sellers can now offer gift wrapping. Additionally, Etsy is testing ways to highlight items that are ready to ship within one or three business days. By embracing these features, sellers can attract even the most procrastinating buyers.

10. New Features for Sellers:

Etsy places great emphasis on listening to the needs and requests of sellers. In response to popular demand, the platform has introduced additional shop sections to showcase items and a bulk edit tool for more efficient listing updates. Real-time views and improved stats have also been reintroduced to provide sellers with reliable and consistent data.

Conclusion:

Etsy's ongoing efforts to improve sales growth and the search experience demonstrate its commitment to sellers. By investing in personalized search algorithms, introducing sales and promotions, extending the holiday shopping season, and implementing new features, Etsy aims to provide a thriving marketplace for creative entrepreneurs looking to reach a broader audience. With strong progress in recent months, sellers can look forward to continued growth and success on Etsy.

Highlights:

1. Etsy experiences 13% sales growth in the third quarter.
2. Context-specific ranking (CSR) personalizes the search experience for buyers, resulting in more relevant results.
3. Etsy uses data and testing to drive improvements in the buyer experience.
4. Sales and promotions on Etsy help sellers have a successful holiday season.
5. Etsy introduces new features for sellers to enhance their shop functionality.

FAQ:

Q: How has Etsy improved search and discovery for buyers? A: Etsy has introduced context-specific ranking (CSR) to personalize the search experience based on factors such as a buyer's preferences and time of day. This ensures that the most relevant and diverse results are displayed, leading to increased sales for sellers.

Q: What tools does Etsy provide to help sellers during the holiday season? A: Etsy offers sales and promotions tools, including site-wide sales and coupon features, to attract buyers and encourage increased sales. Additionally, gift wrapping options and highlighted ready-to-ship items help sellers cater to last-minute shoppers.

Q: How does Etsy use data and testing to enhance the buyer experience? A: Etsy uses data and testing to make informed decisions about improving the platform's features and design. By analyzing the results of various experiments, Etsy implements changes that have a positive impact on sales and provide a better experience for buyers.

Q: What new features has Etsy introduced for sellers? A: Etsy has introduced additional shop sections, a bulk edit tool for streamlined listing updates, and brought back real-time views and improved statistics. These features empower sellers with more control over their shops and provide them with reliable data for decision-making.

Q: How does Etsy aim to extend the holiday shopping season? A: Etsy enables sellers to offer gift wrapping and highlights items that are ready to ship within one or three business days. These initiatives cater to last-minute shoppers and allow sellers to attract buyers even during the final days leading up to Christmas.

Q: What is Etsy's focus for the future? A: Etsy's focus going forward is to continue improving sales growth and providing a better buyer experience. The platform listens to seller requests and plans to introduce new tools and features in 2018 based on their feedback and business needs.