Etsy Pilots Conversational AI to Ignite Marketplace Sales

Etsy is working to offer conversational search both in OpenAI’s ChatGPT and on its own platform.

The company said in a Tuesday (May 5) blog post that the Etsy app in ChatGPT is now live in beta and that it is testing a beta conversational search experience on Etsy.

“Our approach will evolve based on what we learn,” Etsy Chief Product and Technology Officer Rafe Colburn wrote in the post. “We’re showing up in these channels to test, iterate and understand how to help sellers reach shoppers looking for the meaningful items they offer.”

The Etsy app in ChatGPT allows users to search and compare Etsy items directly in the conversation, according to the post. Users tag @Etsy, type a prompt, see relevant listings provided by the app, and click to go to Etsy and learn more.

With this app in ChatGPT, users get relevant listings by typing prompts such as, “@Etsy Help me find a Mother’s Day gift under $100 for my mom who loves gardening.”

Etsy learned from its experience as the first live integration partner for ChatGPT Instant Checkout that ChatGPT “works well as a discovery channel. Shoppers often chose to come to Etsy from their chats to learn more before making a purchase,” Colburn wrote.

The company’s other project, the beta conversational search experience on Etsy, is still in its early stages, according to the post. This experience will be designed to help users find a gift.

Colburn wrote in the post that large language models and conversational search are well suited to the challenge of helping shoppers find items among the millions listed by Etsy sellers.

“It gives shoppers a way to say what they mean, whether they have something specific in mind or just a starting point,” Colburn wrote.

PYMNTS reported Wednesday (April 29) that Etsy is deploying AI to build a system that can surface the right product to the right buyer at the right moment.

The company is also building into the agentic commerce channel through integrations with OpenAI, Microsoft and Google. Etsy described early agentic traffic as high intent but still a fraction of a percent of total visits.