Etsy Integrates ChatGPT to Revolutionize Online Shopping Experience

Etsy recently unveiled a new native app integrated with ChatGPT, marking a significant advancement in the use of artificial intelligence for online commerce. This initiative allows users to explore Etsy's vast catalog, which includes over 100 million listings, in a more intuitive and natural way.

Rather than being limited to traditional keyword searches, users can now formulate their queries in natural language. For example, they can ask: “Help me find a Mother’s Day gift under $100 for my mom who loves gardening.” This approach aims to simplify the search process and make it more accessible.

Currently in beta, this feature allows users to tag @Etsy in a conversation with ChatGPT. The app then displays relevant products that users can browse, compare, and purchase directly on Etsy.

This integration is not Etsy's first with ChatGPT. In September, Etsy had already experimented with the Instant Checkout integration, allowing direct purchases through the chat interface. However, this feature was discontinued in March, likely due to disappointing sales results.

Meanwhile, Etsy is testing a new conversational search experience on its own platform, currently in beta. This service, designed to help users find gifts, functions like a personal assistant, guiding users through a series of questions to refine their preferences and discover suitable products.

This initiative is part of a broader strategy by Etsy to integrate AI into its operations. This includes tools for sellers, such as automatic generation of product titles and descriptions, and a writing assistant to facilitate communication with buyers. In 2024, Etsy also introduced a “Designed” label to identify AI-generated content, thereby enhancing transparency on the platform.

The announcement of this integration with ChatGPT comes shortly after the release of the financial results for the first quarter of 2026, where Etsy exceeded expectations with revenues of $631 million. Gross merchandise sales increased by 6% compared to the previous year, and the number of active buyers reached 86.6 million, marking the first increase in two years. Etsy also highlighted 5.6 million active sellers on the platform, underscoring the scale of its community.

In February, Etsy sold Depop to eBay for $1.2 billion in cash, a decision aimed at refocusing its efforts on its core marketplace. Etsy joins other companies like Angi, SeatGeek, Tubi, and Wix, which have also been developing native apps within ChatGPT since October.