Etsy Says It Has 10 Times More Traffic — Here's How

Etsy's revenue has more than tripled, from $818 million in 2019 to $2.75 billion in 2023. And as its revenue rises, so does the platform's investments in technology. Etsy spent $470 million last year for research and development — a record high.

"I think Etsy is uniquely positioned to benefit from AI," Etsy CFO Rachel Glaser said in a Wednesday interview with Bloomberg . "Finding that needle in the haystack is tricky — that's part of what makes Etsy both delightful and frustrating to people. Being able to serve the good stuff to the top fastest is where AI can really benefit us."

Related: How To Sell on Etsy: A Comprehensive Guide

How Etsy Is Using AI

AI now tailors product searches on Etsy to increase the chances that a shopper will buy an item. It also gives shoppers more precise delivery times and generates gift guides .

Glaser emphasized Etsy's spending on AI and other technology like cloud computing as key to laying the groundwork for more growth. Moving company data to the cloud from on-premise servers, for example, resulted in " 10 times the amount of traffic ," Glaser said. Etsy's machine-learning tools processed data stored in the cloud more quickly than data stored locally, leading to a traffic spike.

The interview also revealed that Etsy doubled its active buyer count during the pandemic, with face mask sales driving growth. According to Bloomberg estimates, Etsy sold $750 million worth of masks in 2020 and the company was able to retain the customers driving those sales even after the pandemic ended.

Related: Did AI Make That? Etsy Makes It Easier to Tell If a Seller Used AI to Create a Product

Etsy has recently taken measures to differentiate AI-generated products and designs from human-created ones. The platform set " Creativity Standards " in July that only allow sellers to list products they have made, designed, sourced, or handpicked.

Etsy had over 91 million active buyers as of its most recent earnings report , a 1% year-over-year increase.