Etsy’s active buyers grew for the first time in two years. Q3 gross merchandise sales rose 8.8% to $2.6 billion. Revenue increased nearly 11% to $692.5 million. The company now expects full-year GMS growth of about 7%. Q4 GMS growth is forecast at 5% to 7%. Etsy is using AI to improve product recommendations. It is also expanding its gifting tool experience. New rules ban AI-generated functional guides in listings. Listings must include at least one real product image. CEO Kruti Patel Goyal said AI will change how people discover and shop. She added human creativity will matter even more as AI scales.
What changed
Active buyers had declined for two years.
What it unlocks
Sellers can use AI to reach more customers. Buyers get better product recommendations.
- 8.8% YoY Q3 GMS growth
- $2.6B Q3 GMS
- $692.5M Q3 revenue
- 1% YoY active buyers growth
Sources