🛍️ Introduction to Etsy Insider
Etsy is introducing a paid membership program named Etsy Insider in mid-September. According to Simona Shakin, vice president of product and retention marketing at Etsy, the program will start as a closed-beta for select buyers in the US. Etsy Insider aims to boost customer loyalty by offering various perks, including free U.S. domestic shipping, a birthday bonus, limited edition annual gifts designed by Etsy sellers, first access to discounts and select merchandise, and double impact with the Donate the Change program.
📉 Addressing Revenue Challenges
Etsy's decision to launch a paid membership program comes as the company faces revenue challenges. CEO Josh Silverman mentioned during the company's fiscal first-quarter earnings in 2024 that Etsy is dealing with a "challenging environment for consumer discretionary products." This environment resulted in a 3.5% year-over-year decline in gross merchandise sales for the quarter ending March 31. Etsy also faces increased competition from rivals like Michaels, which introduced its MakerPlace marketplace in 2023.
💡 Perks of Etsy Insider
Etsy Insider will offer significant benefits for members. These perks include free U.S. domestic shipping on millions of items, a birthday bonus, a limited edition annual gift, first access to special discounts, and the ability to double donations through the Donate the Change program. This program allows shoppers to round up their order totals to donate to Etsy's Uplift Fund, which promotes entrepreneurship. Importantly, the program will not incur any costs to Etsy sellers; the benefits will be funded by Etsy and the membership fees.
🏆 Position in the Market
Etsy ranks No. 20 in the Global Online Marketplaces Database by Digital Commerce 360, which lists the top 100 largest marketplaces by third-party gross merchandise value (GMV). Reverb, Etsy's musical instrument marketplace, is No. 45, while Depop, a used-clothing marketplace, is No. 54. Digital Commerce 360 projects that Etsy's total GMV will reach $753.7 billion in 2024. Despite the lack of centralized fulfillment, unlike competitors like Amazon and Walmart, Etsy believes Etsy Insider will enhance the shopping experience and customer loyalty.
Will you join Etsy's new Insider program?
