Etsy

Last week, our Public Policy team spent time in Paris engaging with policymakers on regulation that supports and empowers microbusinesses across France and the EU. We also connected with a group of France-based sellers to hear firsthand about their wins, challenges, and day-to-day experiences. These valuable insights help us shape how we continue to support our global seller community. Thank you to the incredible sellers who joined us. We’re grateful for the thoughtful conversations, insightful feedback, and the opportunity to explore how Etsy can further empower sellers to connect, grow, and thrive. We’re looking forward to continuing the conversation and meeting more members of our seller community!

Some of the best finds on Etsy are the ones you weren’t expecting. ✨ Sellers’ ads on Etsy play a role in that discovery: they help surface items relevant to what buyers are searching for while enabling sellers to grow their reach and businesses. Our latest Code as Craft explores how our teams leverage Multi-gate Mixture-of-Experts (MMoE) and auxiliary tasks in our ML models to better understand shoppers’ intent and match them with ads for items that genuinely speak to them, keeping discovery personal. Read more on our Code as Craft blog: https://lnkd.in/gpau4PhJ

The Etsy app in ChatGPT is now live in beta. It’s a meaningful step for us, and part of a broader shift already underway in ecommerce. For a long time, shopping online was shaped by the limits of structured data and form controls: keywords, filters, and a lot of work from the buyer. AI is starting to change that. People can express what they want more naturally, and systems are getting better at understanding intent, context, and taste. This is good news for Etsy: our marketplace is made up of millions of creative items from real people that don’t map back to a catalog or SKUs. We’re testing into conversational search both on and off Etsy to learn in real time how these experiences can help better connect sellers on our platform with shoppers looking for something special. I shared more about how we see this shift here: https://lnkd.in/gjntQaqM

Over the past year, we’ve been focused on one main thing: returning Etsy to durable growth. Today, we shared our Q1 2026 results, which can be found in the shareholder letter on our IR website, and we’re encouraged by the progress. The Etsy marketplace delivered $2.5B in GMS, up 5.5% year-over year, alongside continued strength in revenue and profitability. More importantly, we’re seeing early signs of healthier customer behavior - active buyers grew sequentially for the first time in two years, new buyers and active sellers returned to growth, and GMS per buyer increased year-over-year for the first time since 2022. These are early indicators, but they matter. They reflect real improvements in the customer experience and give us confidence that our strategy is starting to take hold. We’re making progress against our four priorities — showing up where shoppers discover, matching them with the right inventory, retaining and rewarding our most valuable customers, and amplifying human connection — designed to work together to drive engagement, frequency, and long-term growth. This is showing up in how buyers discover and engage on Etsy, with our app becoming a powerful driver of a more personalized, relevant experience. At the same time, our deeper approach to matching is helping us better understand each buyer’s intent, taste, and context — so we can surface the right items for the right moment. AI is accelerating that shift, helping us make sense of Etsy’s breadth and move faster from insight to impact. We’re also focused on strengthening loyalty — giving our most engaged buyers and sellers more reasons to come to, and sell on, Etsy — while leaning more intentionally into what I believe is one of our strongest differentiators: human connection. We’ve now delivered two consecutive quarters of GMS growth and our outlook suggests growth again in this quarter. We believe that there’s more work to do — and that progress won’t always be linear. What gives me confidence is not just the metrics, but what’s driving them: stronger execution and a clearer understanding of how Etsy works at its best. Etsy has always stood for creativity, human connection, and meaningful commerce — and we are poised to turn those differentiators into stronger business drivers as we deliver on our mission to Keep Commerce Human. — Kruti Q1 2026 Shareholder Letter: https://bit.ly/4ufpeMa

At Etsy, we believe supporting families isn’t just the right thing to do, it’s also essential to building a stronger, more resilient economy that uplifts small businesses. This week, local Etsy sellers joined us in Harrisburg, Pennsylvania to advocate for statewide paid family & medical leave. They met with state lawmakers to share firsthand how a paid leave program would make a meaningful difference for small businesses and families across the state. And just this week, Virginia signed into law their paid family and medical leave program, an effort we’re proud to have supported. It’s a powerful example of the progress that’s possible when small business voices are part of the conversation. We’ll continue to advocate for policies that support our seller community and amplify small business voices in the spaces where it matters most.

It’s officially festival season. And this year, generic fan merch isn’t cutting it. This week, we teamed up with music icons Laufey, PinkPantheress, and Willow Avalon to launch the Etsy Festival Shop: three limited-edition merch collections co-created with Etsy sellers and inspired by each artist’s signature style. ✨ Designed for the season’s biggest stages, these pieces reimagine what festival merch can be: one-of-a-kind, fan-driven, and made by real sellers at the center of fan culture. Explore the Festival Shop and discover the collection: https://lnkd.in/geBnuVeD

💍 Etsy takes Bridal Fashion Week We partnered with Tanner Fletcher to bring something new to the New York Bridal Fashion Week runway: an exclusive wedding collection co-created with Etsy sellers. From handcrafted accessories to custom wedding details, every piece celebrates individuality, creativity, and the makers behind it all. And beyond the runway, Etsy sellers took center stage at our first-of-its-kind wedding fair — connecting directly with couples and showcasing how personal every wedding moment can be. 🤍 Learn more about the collab and discover the exclusive collection: https://lnkd.in/gi-48y7G Photos by: Selwyn Tungol and and Rey Fernandez

Our job at Etsy is to help connect our incredible seller community with millions of shoppers looking for something special. This means continuing to evolve the systems that power our marketplace behind the scenes.  In a new Code as Craft blog, our Data Access Platform team shares how they reworked a key part of our infrastructure: how our data is split up and routed across databases. As Etsy grew, our original approach to sharding became harder to scale and maintain. By migrating to Vitess, we’ve simplified how requests are routed, reduced operational overhead, and made it easier to grow without adding complexity. The result is a more flexible, resilient foundation that helps us support real human connections on our platform—while giving our teams room to keep building. Read our latest Code as Craft blog here: https://lnkd.in/gcWG6ije

We’re proud to introduce the Climate Academy – a free learning hub for makers and small businesses, created in partnership with Nest and Adyen. Small businesses are at the heart of our marketplace. In fact, 80% of Etsy shops are businesses of one, and 97% of sellers work from their homes* – making them especially vulnerable to climate-related disruptions. The Climate Academy helps sellers better understand climate risks and build practical strategies to strengthen their businesses before, during, and after a natural disaster. This is one step in our ongoing commitment to building a more resilient, sustainable future for our seller community. Click here to learn more: https://lnkd.in/e2qvHh2P *According to the 2024 Seller Census.