Current:Home > MyEtsy plans to test its first-ever loyalty program as it aims to boost sales -Nova Finance Academy
Etsy plans to test its first-ever loyalty program as it aims to boost sales
View
Date:2025-04-11 22:48:25
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! (661)
Related
- Which apps offer encrypted messaging? How to switch and what to know after feds’ warning
- Mitch McConnell stepping down as Senate GOP leader, ending historic 17-year run
- Josh Peck's viral Ozempic joke highlights battle over 'natural' vs. 'fake' weight loss
- Social media influencer says Dolphins’ Tyreek Hill broke her leg during football drill at his home
- US wholesale inflation accelerated in November in sign that some price pressures remain elevated
- How Curb Your Enthusiasm's Larry David and More Stars Are Honoring Richard Lewis After His Death
- The FAA gives Boeing 90 days to fix quality control issues. Critics say they run deep
- Envelope with white powder sent to judge in Trump fraud trial prompts brief security scare
- Who's hosting 'Saturday Night Live' tonight? Musical guest, how to watch Dec. 14 episode
- The Daily Money: 'Surge' pricing at the drive-thru?
Ranking
- Pressure on a veteran and senator shows what’s next for those who oppose Trump
- New York lawmakers approve new congressional map that gives Democrats a slight edge
- How gun accessories called bump stocks ended up before the U.S. Supreme Court
- Odysseus lander tipped over on the moon: Here's why NASA says the mission was still a success
- Google unveils a quantum chip. Could it help unlock the universe's deepest secrets?
- Kansas City Chiefs superfan 'ChiefsAholic' pleads guilty to bank robberies
- Will NFL running backs get stiff-armed in free agency again? Ominous signs for big names
- Today Only: Save $40 on a Keurig Barista Bar That's So Popular, It's Already Sold Out on the Brand's Site
Recommendation
Man can't find second winning lottery ticket, sues over $394 million jackpot, lawsuit says
Liam Gallagher says he's 'done more' than fellow 2024 Rock & Roll Hall of Fame nominees
Are NBA teams taking too many 3-pointers? Yes, according to two Syracuse professors
Digital outlets The Intercept, Raw Story and AlterNet sue OpenAI for unauthorized use of journalism
Military service academies see drop in reported sexual assaults after alarming surge
Judge declines to pause Trump's $454 million fraud penalty, but halts some sanctions
Climate change, cost and competition for water drive settlement over tribal rights to Colorado River
WWE star Virgil, born Mike Jones, dies at age 61