Etsy announced Wednesday that it will start testing its first loyalty program, Etsy Insider, in September. Aimed at revitalizing sluggish sales and attracting occasional patrons, the loyalty initiative will grant select invitees rewards like free US shipping and special 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," remarked Raina Moskowitz, Etsy's chief operating and marketing officer. The company did not reveal the exact cost for the program but mentioned it would be akin to the price of a latte. Post-trial, Etsy will decide on the nationwide rollout based on consumer feedback.
The e-commerce platform experienced significant growth during the COVID-19 pandemic but has faced hurdles as the pandemic waned, and inflationary pressures grew. Increased competition from retailers like Temu has also affected Etsy. Gross merchandise sales dropped by 5.3% in the first quarter compared to last year, marking consecutive declines.
Additionally, the company's stock has plummeted nearly 78% since late 2021, leading to a workforce reduction of 11% last December. Neil Saunders of GlobalData Retail opines that Etsy's shift away from its artisan roots—what he terms the "junkification" of Etsy—coupled with deteriorating search functions has added to the woes. The company plans to re-emphasize its artisan origins to regain competitive advantage in the e-commerce sector. (This story was generated by Newser's AI chatbot. Source: the AP)
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