Etsy grew its marketplace gross merchandise sales 8.8% year on year to $2.6bn in the third quarter, with revenue up 10.9% to $692.5m.
Active buyers rose 1.0% to around 88 million, the first year-on-year increase Etsy has reported in two years.
Etsy says improvements to personalisation added around two percentage points to its annualised GMS growth.
The Etsy app is growing faster than the rest of the marketplace. App GMS was up 10.4%, compared with 7.5% for non-app sales.
Etsy is also testing an AI-powered seller assistant that uses each shop’s data to give tailored insights and recommendations. Longer term, Etsy wants the tool to help sellers act on those recommendations as well.
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On the buyer side, Etsy has a Gifting Assistant in beta and is testing similar tools for weddings.
Etsy’s take rate rose 50 basis points to 26.2%, mainly because of Etsy Ads.
Etsy completed the sale of Depop on 30th July and now reports the resale app as a discontinued operation.
In the shareholder letter, Etsy chief executive Kruti Patel Goyal wrote: “We don’t need to reinvent Etsy for an AI world.”
For the fourth quarter, Etsy expects GMS of $3.46bn to $3.52bn, up 5% to 7%, with a take rate of around 25.6%.
