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Etsy’s gross merchandise sales (GMS) from the app outpaces non-app GMS, accounting for nearly 45% of total GMS driven by its efforts to make its app browsable and intuitive with improved UX along with ‘algotorial curation’ of aesthetically cohesive, high-quality listings

August 1, 2025 //  by Finnovate

Etsy says a renewed focus on its app paid off in its most recent quarter. The eCommerce retailer released quarterly earnings showing sales creeping up 3.8% for the quarter and 2.3% for the half-year. CEO Josh Silverman said the company’s performance during the quarter was related to a strategic shift Etsy embarked on last year, which included efforts to make it more browsable and intuitive. As user experience has improved, Silverman said, gross merchandise sales (GMS) from the app have outpaced non-app GMS, accounting for nearly 45% of total GMS in the quarter. “What our data suggests is that when we get a buyer to adopt the app, we see their lifetime value go up, and we’ve gained confidence that that’s causal not correlated,” he said. He added that the company is now starting to fight for time, “an inspiration that when you’re waiting for the subway or there’s a commercial on TV, you pull out your app, and we want you to go to Etsy and spend that time just being immersed in all of the different things that you can find on Etsy.” Chief Financial Officer Lanny Baker touched on the company’s consumer landscape, saying Etsy has seen a “slightly healthier consumer spend across all the different cohorts,” both higher-income and lower-income. “We have not seen any big shifts in spending across those related to tariffs or trade announcements that have happened,” Baker said.

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Category: Channels, Innovation Topics

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