Etsy has launched a new AI-powered discovery feature on its app, aimed at enhancing the shopping experience by assisting users in finding unique and personalised items. This announcement was made on April 9, 2025, as part of Etsy's strategy to set itself apart from the larger e-commerce market, which often features repetitive product listings. With over 100 million items available across various styles and categories, Etsy is keen to promote the individuality and creativity of its sellers through this innovative platform enhancement.
The newly introduced discovery experience is designed to transform the browsing process on the Etsy app, offering visually rich, curated collections that align with current trends, individual tastes, and specific occasions. The assortment of collections includes themes such as “Island Luxe,” lifestyle aesthetics like “Modern Farmhouse” and “Maximalist,” and more niche trends including “Literary Girl.”
Etsy has taken an "algotorial" approach to curation, combining human expertise with artificial intelligence tools. To initiate the collections, a team of human experts first identifies trends and selects an initial set of approximately 50 listings. Subsequently, Etsy engineers utilise machine learning techniques to expand this selection to about 1,000 listings, ensuring diversity in product types and adherence to Etsy’s quality standards. Large language models (LLMs) are then employed to maintain visual cohesion across the expanded collection.
“Rather than removing human expertise from our merchandising work as AI becomes more powerful, we’re leveraging these tools to amplify the expertise of our team and create a more personalized experience,” the company stated.
The new browsing feature also incorporates behavioural data to tailor each user's discovery experience. This personalisation is based on recent activity, including viewed items and past purchases, with displayed items being organised to reflect individual shopper preferences. This adaptive approach caters particularly to modern consumers, especially younger generations, who are increasingly looking for products that resonate with their unique styles.
In addition to enhancing the shopping experience, Etsy's updates establish a foundation for more advanced, data-driven personalisation in the future. As users engage with these curated feeds, Etsy will gather deeper insights into buyer behaviour, thereby refining its machine learning models to better predict shopper preferences. Alongside this, the use of LLMs allows Etsy to gain a more nuanced understanding of its marketplace inventory, facilitating intelligent recommendations from its extensive catalog.
This AI-powered discovery feature is now fully operational on the Etsy app, representing a blend of technology and human curation that seeks to reimagine how users explore the platform. Etsy's commitment to leveraging both AI and human expertise aims to unlock the potential of its diverse seller community, ensuring that every shopper can discover something unique and special.
Source: Noah Wire Services