Current:Home > StocksEtsy plans to test its first-ever loyalty program as it aims to boost sales -TradeBridge
Etsy plans to test its first-ever loyalty program as it aims to boost sales
View
Date:2025-04-11 14:20:03
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! (973)
Related
- Jorge Ramos reveals his final day with 'Noticiero Univision': 'It's been quite a ride'
- Why Martha Stewart Says She Doesn't Wear Underwear
- How Keke Palmer and Ex Darius Jackson Celebrated Son Leo on His First Birthday
- Will AT&T customers get a credit for Thursday's network outage? It might be worth a call
- Moving abroad can be expensive: These 5 countries will 'pay' you to move there
- Jason Kelce’s Wife Kylie Kelce Shares Adorable New Photo of Daughter Bennett in Birthday Tribute
- Loretta Lynn's Granddaughter Auditions for American Idol: Here's How She Did
- Returning characters revive 'The Walking Dead' in 'The Ones Who Live'
- What do we know about the mysterious drones reported flying over New Jersey?
- Peter Anthony Morgan, lead singer of reggae band Morgan Heritage, dies at age 46
Ranking
- Travis Hunter, the 2
- A New York City medical school goes tuition-free thanks to a $1 billion gift
- NFL scouting combine 2024: How to watch workouts for NFL draft prospects
- Deleted texts helped convince jurors man killed trans woman because of gender ID, foreperson says
- In ‘Nickel Boys,’ striving for a new way to see
- Massachusetts governor faults Steward Health Care system for its fiscal woes
- U.S. Army restores honor to Black soldiers hanged in Jim Crow-era South
- These Versatile Black Pant Picks Will Work with Every Outfit, for Any Occasion
Recommendation
Woman dies after Singapore family of 3 gets into accident in Taiwan
Donald Trump appeals $454 million judgment in New York civil fraud case
Most-Shopped Celeb-Recommended Items This Month: Olivia Culpo, Kyle Richards, Zayn Malik, and More
Economists see brighter outlook for 2024. Here's why.
IRS recovers $4.7 billion in back taxes and braces for cuts with Trump and GOP in power
Beyoncé and the Houston Rodeo: What to know about the event and the singer's ties to it
William H. Macy Shares Rare Update on Life With Felicity Huffman and Their Daughters
Shannen Doherty Shares How Cancer Is Affecting Her Sex Life