Etsy Overhauls Its Mobile App with AI-Driven Discovery and Personalization to Inspire More Shoppers
Etsy is changing how people shop, and it is starting with the device most people use every day. The company is no longer content with being a simple place to buy handmade goods. It wants to become a space where people browse, get ideas, and feel connected to creators. That shift is showing up clearly in its newly overhauled mobile app.
The international online marketplace is rebuilding the app around discovery and personalization, powered by advanced AI. The goal is to keep shoppers engaged longer and help them find items they did not even know they wanted.
The New App Is More Personal
Lee / Pexels / Etsy’s mobile app now acts more like a curated feed than a search tool. Instead of typing exact keywords, users can scroll through recommendations that feel tailored to their taste.
This change comes from deep investments in machine learning and large language models that analyze behavior and preferences in real time.
Engagement on Etsy’s home discovery feed has jumped by 19% year over year. Personalized push notifications are also driving action, with clicks rising by 25%. These show that shoppers respond when the experience feels personal and relevant.
The company sees the app as its most valuable channel. Shoppers who use the app have a 40% higher lifetime value compared to those who do not. That gap explains why Etsy is pushing hard to make the mobile experience richer and more engaging.
The app now drives 46% of Gross Merchandise Sales as of late 2025, up five points from just two years earlier. That growth suggests Etsy still has room to deepen user habits and increase spending through mobile.
AI Meets Human Creativity in the Updated App
Etsy is not handing everything over to algorithms. Instead, it blends human taste with machine precision in what it calls an “algatorial” approach. This means real merchandisers create themed collections, and AI scales them to match individual shoppers.
For example, a team might design a spring fashion collection with a clear creative direction. AI then adjusts that collection for each user, showing items that fit their style, budget, and past behavior. This keeps the experience fresh while still feeling thoughtful.
This balance matters because Etsy’s inventory is massive and unique. With over 100 million items, finding the right product can feel overwhelming. AI helps narrow the field, but human input keeps the platform from feeling cold or generic.
Discovery Expands Beyond the App
SHK / Pexels / Etsy has started integrating with AI-driven tools like Microsoft Copilot and OpenAI’s ChatGPT. These partnerships allow users to discover and even purchase Etsy items without opening the app.
This move signals a bigger shift in online shopping. Instead of visiting a website, people can now find products through conversations with AI assistants. Etsy is positioning itself early in this trend, which could reshape how traffic flows in the future.
Right now, traffic from these AI channels is still small, accounting for less than 1% of total visits. However, growth is rapid, with a 15 times increase year over year in late 2025. More importantly, these users show strong intent, meaning they are more likely to make a purchase.
Alongside its tech upgrades, Etsy is refreshing how it looks and feels. The company recently introduced a new brand identity that focuses on creativity, individuality, and human connection. This supports the broader shift toward discovery and inspiration.
The new design includes a softer, more playful logo with a square motif. This square acts as a frame, symbolizing a window into unique items and the people who make them. It is a subtle change, but it reinforces the idea that every product has a story.
This updated identity is rolling out across the entire platform. From marketing materials to the app interface, the goal is consistency.