Etsy’s revenues have more than tripled $818 million in 2019 to $2.75 billion in 2023. As the platform’s revenues increase, investments in technology also increase. Etsy released Last 12 months it was $470 million for research and development – a record high.
“I believe Etsy is uniquely positioned to benefit from artificial intelligence,” Etsy Chief Financial Officer Rachel Glaser said in a speech Wednesday. interview with Bloomberg. “Finding a needle in a haystack is hard — that’s part of what makes Etsy both delightful and frustrating for people. “AI can really help us if we can deliver the best things to the best people the fastest.”
How Etsy uses artificial intelligence
AI now customizes your product search on Etsy to increase the possibilities that a buyer will purchase your item. It also gives buyers more precise delivery times and generates gift guides.
Glaser emphasized that Etsy’s spending on artificial intelligence and other technologies resembling cloud computing is key to laying the groundwork for greater growth. For example, moving corporate data to the cloud from on-premise servers resulted in “10 times more traffic” Glaser said. Etsy’s machine learning tools processed data stored in the cloud faster than data stored locally, leading to a surge in traffic.
The interview also revealed that Etsy has doubled its variety of energetic buyers during the pandemic, with face mask sales driving growth. According to Bloomberg estimates, Etsy sold $750 million price of masks in 2020, and the company managed to retain the customers driving those sales even after the pandemic ended.
Etsy has recently taken steps to differentiate AI-generated products and designs from human-made ones. In July, the platform established “Creativity Standards” that only allow sellers to list products they have produced, designed, sourced or hand-selected.
At this point, Etsy had over 91 million energetic buyers latest earnings reportwhich implies an increase of 1% 12 months on 12 months.