Etsy will provide free delivery services for members to compete with platforms like Amazon
Etsy announced at the Goldman Sachs Communacopia + Technology conference that it will launch the Etsy Insider subscription plan, offering free delivery services to members to enhance competitiveness against rivals like Amazon. The company's CEO and CFO pointed out that the gift market is worth $200 billion, with Etsy currently holding only 1%, indicating significant growth opportunities. Etsy also plans to increase the usage of its mobile app and improve search result relevance through quality ratings
According to the Zhitong Finance and Economics APP, at Goldman Sachs' Communacopia + Technology conference, the US cross-border e-commerce platform Etsy (ETSY.US) announced its future plans and new areas the company is researching.
Finally, the company recently launched Etsy Insider, a paid subscription plan that offers free shipping and early access to Drops for members. By introducing Etsy Insider, the company aims to enhance its competitiveness against Amazon and increase customer retention rates.
While Etsy and its competitors are competing for consumers' discretionary dollars, the company is focusing on initiatives that not only differentiate it from competitors like Amazon (AMZN.US) but also provide "significant" growth opportunities.
The company's primary initiative is the significant gift market. CEO Josh Silverman and CFO Rachel Glaser estimate that gifting is a $200 billion business, with Etsy only capturing 1% of the gift market, presenting a "significant opportunity to win in gifting." To expand market share, Etsy has introduced "Gift Mode," allowing shoppers to send gift information to recipients before the gift arrives, along with expanded search options to help shoppers find the perfect gift.
The company is also focusing on app penetration. Currently, only 40% of Etsy shoppers use the mobile app, and Silverman aims to increase this number to 75%. As consumer engagement with the app grows, this initiative provides another "significant opportunity for growth."
Additionally, the recently added quality score will prioritize highly rated products in search results. Silverman expects that by incorporating ratings for fast delivery, high ratings, and seller responsiveness, consumers will have more choices when selecting products among sellers