Etsy Launches Native Shopping App Integration Within ChatGPT

Etsy has announced the launch of its native shopping app inside ChatGPT, marking a significant step in integrating conversational artificial intelligence into e-commerce. The new feature allows users to browse Etsy’s catalogue of over 100 million items by using natural language prompts, rather than conventional keyword searches.

Currently in beta, the integration enables ChatGPT users to tag @Etsy in their prompts to receive personalized product suggestions and relevant listings. This initiative follows the company’s earlier partnership with ChatGPT, which included an 'Instant Checkout' feature that was discontinued in March due to low sales performance. In response, Etsy shifted toward a standalone app to strengthen its AI-driven product discovery strategy.

Beyond the ChatGPT integration, Etsy is piloting a conversational search experience on its own platform. The beta gift-finding assistant aims to make online shopping more interactive, functioning in a similar fashion to a personal shopper by recommending items based on user input through dialogue.

Etsy’s advancement in artificial intelligence includes not only consumer-facing experiences but also seller tools. The company has introduced an AI-powered discovery system for shoppers and automated seller utilities, such as tools for generating product titles and drafting customer messages. Additionally, Etsy has established a 'Designed' label to identify AI-generated content, aiming to increase transparency for users and sellers alike.

The announcement comes in the wake of Etsy’s Q1 2026 earnings release, where the company reported $631 million in revenue, surpassing analysts’ forecasts. Marketplace gross merchandise sales climbed 6% year-over-year, and the active buyer base rose to 86.6 million—a return to growth after two years. Etsy also disclosed having 5.6 million active sellers on its platform.

In February, the company finalized the sale of fashion resale marketplace Depop to eBay for $1.2 billion, sharpening its focus on its core marketplace operations. Etsy now joins a range of companies, including Angi, SeatGeek, Tubi, and Wix, in creating native apps within the ChatGPT ecosystem, a feature available to developers since October 2023.

Etsy’s move underscores a growing trend among online marketplaces to leverage generative AI and chatbots to enhance the shopping experience, streamline discovery, and improve engagement, with broader implications for digital commerce.

Source: dataconomy.com