Etsy launches ChatGPT app as it expands conversational shopping tools

Etsy has launched a beta version of its app within OpenAI’s ChatGPT platform, allowing users to search and compare products from Etsy directly inside conversations.

The integration enables ChatGPT users to tag Etsy in prompts and receive tailored product recommendations pulled from the marketplace. Shoppers can compare listings within the chat before clicking through to Etsy to complete purchases, according to Rafe Colburn.

The rollout deepens Etsy’s relationship with OpenAI following earlier experiments around AI-powered commerce.

Last year, Etsy became the first retailer to support ChatGPT’s Instant Checkout feature, which enabled purchases directly inside the chatbot before OpenAI later shifted its focus toward product discovery instead of embedded transactions.

During that pilot, Etsy found ChatGPT was effective at driving product discovery and helping shoppers learn about products before eventually purchasing through Etsy’s platform, Colburn said.

At the same time, Etsy is also testing its own conversational AI shopping tools.

The company is piloting a conversational search experience on Etsy designed to help shoppers discover gifts and navigate the marketplace’s millions of unique products using more contextual queries.



“Our approach will evolve based on what we learn,” Colburn said. “We’re showing up in these channels to test, iterate, and understand how to help sellers reach shoppers looking for the meaningful items they offer.”

The move comes amid a broader push by retailers to integrate AI-powered shopping assistants and conversational commerce experiences.

Williams-Sonoma began testing advertising placements in ChatGPT earlier this year, while Sephora launched a U.S. pilot of its app inside ChatGPT in March. Walmart has also integrated its AI shopping assistant, Sparky, with the platform.

Retailers are simultaneously rolling out their own AI shopping tools. Kohl’s recently introduced an AI-powered Gift Finder using Google Cloud’s Gemini platform, while Amazon expanded its conversational shopping capabilities with its “Join the Chat” feature, allowing users to interact with AI-generated product summaries in real time.

The AI rollout comes as Etsy posted modest first-quarter growth. The company reported Q1 revenue of $631 million, up 3% year over year, while net income increased to $105 million.

Click here to sign up to Retail Gazette‘s free daily email newsletter

Ecommerce

Filters

RELATED STORIES

Menu