Etsy targets gift shoppers with AI-based tool

Dan Berthiaume
Senior Editor, Technology
Etsy Gift Mode
Etsy has a new experience for gift shoppers.

Etsy Inc. is aiming to become the ultimate gift destination — with the help of artificial intelligence.

The online marketplace retailer is launching an artificial intelligence-enabled shopping hub that combines AI and human curation to help shoppers find the perfect present for every occasion. Located within the Etsy app and on Etsy.com,  the company's new "Gift Mode" is described as a one-stop, end-to-end experience that takes shoppers through gift consideration, discovery and logistics.

After a customer using Gift Mode enters a few details about the person they’re shopping for, Etsy applies machine learning (ML) technology to match gift shoppers with targeted/ unique items from Etsy sellers, categorized by more than 200 recipient personas. Gift givers can opt to create a "gift teaser" for the recipient, including their gift note, tracking information, and an advance preview of the item, or leave it a surprise until it arrives. They can also choose when to send this gift teaser page.

According to Etsy, it will continue to iterate and enhance Gift Mode’s capabilities, launch new features, and expand the offering to serve the needs of late gift-givers. Marketing efforts will include new TV advertising that will debut during the NFL playoffs and “Big Game.”

"We’ve found that about half of gifting happens outside of the holidays for personal occasions like birthdays, graduations, baby showers, and anniversaries," Etsy CEO Josh Silverman said in a corporate blog post. "There is no single market leader and Etsy sees a real opportunity to become the destination for gifting. Without prompting, only 12% of U.S. shoppers name Etsy top of mind as the place to shop for gifts. We want to change that. I have incredible conviction that we are tapping into a truly authentic space where Etsy can have a real impact."

Etsy enables off-platform sales

A feature introduced in fall 2023 and timed for the holiday gift shopping season, Etsy Share & Save, provides participating sellers with unique links they can share digitally outside of Etsy to promote their items. Sellers can embed links in channels including social media, texts, personal websites and email marketing. 

Different types of links sellers can embed include direct links to their Etsy shop, specific listings in or sections of a shop, promo codes and reviews. Links never expire.

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