Etsy has introduced a new feature called “Gift Mode,” which utilizes AI to provide personalized gift suggestions based on specific preferences. This feature functions as an online quiz, inquiring about the recipient (such as sibling, parent, or child), the occasion (like birthday, anniversary, or get well), and the recipient’s interests. With an initial selection of 15 interests ranging from crafting to fashion, sports, video games, pets, and more, Gift Mode generates customized gift guides from the vast array of over 100 million items available on the platform. These gift guides cater to more than 200 different personas, such as “The Music Lover,” “The Video Gamer,” “The Adventurer,” and “The Pet Parent.” Etsy plans to continually update the feature by incorporating new interests and personas to align with evolving trends, as stated by Tim Holley, Etsy’s VP of Product, in an interview with TechCrunch.
Moreover, Etsy has also introduced a “gift teaser” option, allowing users to send a preview of the chosen gift to the recipient via email if the actual gift might not arrive in time for the event. This option enables users to include a personalized gift note along with tracking information for added convenience.
In a similar vein, online retailer UncommonGoods had previously launched “Sunny,” an AI-powered gift guide feature in 2017. “Sunny” suggests gift options based on criteria like the recipient’s demographic information, hobbies, and preferences, with an additional text box for more specific input.
Etsy aims for Gift Mode to alleviate the stress associated with selecting the perfect gift, citing a recent survey where 71% of participants admitted feeling anxious while shopping for gifts in the past year. Holley emphasized that Gift Mode was developed to cater specifically to the gifting experience, providing a dedicated platform for thoughtful and meaningful gift selection year-round, ultimately positioning Etsy as the go-to destination for gifting.
The implementation of Gift Mode involves a blend of machine learning, human curation, and OpenAI’s GPT-4 technology. Holley highlighted the versatility of OpenAI’s GPT-4 in expanding the range of gifting options provided. Leveraging Etsy’s advanced machine learning infrastructure, which powers various functions like search and recommendations, specific optimizations were made to ensure that the listings recommended are suitable for gifting and prioritize high-quality items from sellers known for exceptional customer service.
Etsy has been utilizing AI to enhance its search capabilities for an extended period, with a recent emphasis on generative AI technologies. CEO Josh Silverman expressed enthusiasm about the potential of large language models and generative AI to further enhance the user experience on Etsy, particularly in the context of search functionalities.
The company has previously introduced gift-related features such as wedding and baby registries and plans to continue investing in the gifting space to enhance the capabilities of Gift Mode. Additionally, Etsy recently unveiled a new initiative called “Share & Save,” where sellers who promote their Etsy store through shared links benefit from a reduced transaction fee of 4%, down from the standard 6.5% fee. This initiative follows a previous fee increase that sparked discontent among sellers in 2022, resulting in a strike.
Etsy boasts a substantial user base of over 90 million customers and more than six million sellers, solidifying its position as a leading e-commerce platform in the gifting industry.
