Current:Home > StocksEtsy plans to test its first-ever loyalty program as it aims to boost sales -Visionary Growth Labs
Etsy plans to test its first-ever loyalty program as it aims to boost sales
View
Date:2025-04-17 00:40:33
Etsy said Wednesday it will begin testing its first-ever loyalty program in September, a move designed to boost the e-commerce site’s sluggish sales and draw in occasional shoppers.
The New York-based company said select buyers will receive an invitation for the program, which will offer free shipping across the U.S. and access to discounts.
“We want people to start their shopping journey on Etsy rather than come to Etsy when they’re just looking for something very specific,” Raina Moskowitz, the company’s chief operating and marketing officer, said in an interview.
Etsy is launching the program — called Etsy Insider — with the aim of reversing a decline in its gross merchandise sales, a measure of the amount of goods sold over a certain period.
Etsy did not disclose how much customers must pay for the new loyalty program. But Moskowitz said the monthly fee will be close to the cost of a latte. She also said the company will decide on whether or not to do a nationwide rollout of the program after seeing what resonates with consumers.
The company with roots as an online crafts marketplace experienced a boom in its business during the COVID-19 pandemic, when homebound consumers turned to it for items such as artistic face masks. But it’s been facing more challenges since the worst of the pandemic eased and consumers, who typically go on its site to buy discretionary items, began to feel more pressure from inflation. Like Amazon, it is also facing more competition from Temu, the online retailer owned by the Chinese e-commerce company PDD Holdings.
During the first three months of this year, Etsy reported merchandise sales on its marketplace were down 5.3% compared to the same period last year. Consolidated sales, which include purchases made by consumers on two other online sites it owns, had declined by 3.7%, following a slight dip last year.
The company’s stock price has lost nearly 78% of its value since late 2021. In December, it said it would lay off 225 employees, which represented nearly 11% of its workforce.
Though Etsy’s business has softened due the wider economic environment and the loss of pandemic-era sales, some of the challenges can also be tied to the fact that the platform has become more challenging for shoppers to navigate, said Neil Saunders, managing director at GlobalData Retail.
Saunders said he calls the evolution the “junkification” of Etsy.
“Etsy used to be a very focused site that really was about makers, crafting, authentic and unique products,” he said. “That’s still true to some extent, but there’s a lot more junk on the site and a lot of random things being sold.”
Furthermore, Saunders said Etsy’s search functions have gotten worse, which has the potential to turn customers off.
More recently, the company has put more focus on returning to its artisan roots as it seeks to differentiate itself in a competitive e-commerce landscape.
veryGood! (2298)
Related
- What to know about Tuesday’s US House primaries to replace Matt Gaetz and Mike Waltz
- USWNT might have lost at World Cup, but Megan Rapinoe won a long time ago
- Psychiatrist Pamela Buchbinder convicted a decade after plotting NYC sledgehammer attack
- U.S. Women's National Team Eliminated From 2023 World Cup After Cruel Penalty Shootout
- Behind on your annual reading goal? Books under 200 pages to read before 2024 ends
- Step up Your Style With This $38 Off the Shoulder Jumpsuit That Has 34,200+ 5-Star Amazon Reviews
- Chandler Halderson case: Did a Wisconsin man's lies lead to the murders of his parents?
- Israel kills 3 suspected Palestinian militants as West Bank violence shows no signs of slowing
- The city of Chicago is ordered to pay nearly $80M for a police chase that killed a 10
- Justin Thomas misses spot in FedEx Cup playoffs after amazing shot at Wyndham Championship
Ranking
- At site of suspected mass killings, Syrians recall horrors, hope for answers
- Pence, Trump attorney clash over what Trump told his VP ahead of Jan. 6, 2021
- NASCAR Cup race at Michigan disrupted by rain, will resume Monday
- Lucas Glover overcomes yips to win 2023 Wyndham Championship on PGA Tour
- 'As foretold in the prophecy': Elon Musk and internet react as Tesla stock hits $420 all
- First-time homebuyers need to earn more to afford a home except in these 3 metros
- Taylor Swift fan's 'Fantasy Swiftball' game gives Swifties another way to enjoy Eras Tour
- Penguins acquire 3-time Norris Trophy-winning defenseman Erik Karlsson in a trade with the Sharks
Recommendation
Louvre will undergo expansion and restoration project, Macron says
Kyle Kirkwood wins unusually clean IndyCar race on streets of Nashville
Paying too much for auto insurance? 4 reasons to go over your budget now.
Costa Rican soccer player killed in crocodile attack after jumping into river
DoorDash steps up driver ID checks after traffic safety complaints
Christmas Tree Shops announces 'last day' sale; closing remaining locations in 16 states
Montgomery police say 4 active warrants out after brawl at Riverfront Park in Alabama
Russia blasts Saudi Arabia talks on ending war in Ukraine after Moscow gets no invitation to attend