E-commerce platform Etsy has introduced a new AI-powered feature called “Gift Mode,” designed to provide personalized gift recommendations based on specific preferences. The feature, which functions as an online quiz, prompts users to specify the recipient (e.g., sibling, parent, child), the occasion (e.g., birthday, anniversary, get well), and the recipient’s interests. With 15 interests to choose from, including crafting, fashion, sports, video games, and pets, Gift Mode generates a variety of gift guides featuring over 100 million items available on the platform. These guides are tailored to more than 200 different personas, such as “The Music Lover,” “The Video Gamer,” “The Adventurer,” and “The Pet Parent.” Etsy plans to continuously update the feature by adding new interests and personas to align with emerging trends.
Key Takeaway
Etsy’s new AI-powered ‘Gift Mode’ aims to simplify the gift selection process by providing personalized recommendations based on user inputs, offering over 200 gift guides tailored to different interests and personas.
Etsy’s New ‘Gift Teaser’ Option
In addition to the gift guides, Etsy has introduced a “gift teaser” option, allowing users to send a sneak peek of the selected item to the recipient via email, especially if the gift may not arrive in time for the event. This feature also enables users to include a personalized gift note and tracking information.
AI-Powered Gift Guides in E-commerce
Etsy’s Gift Mode is reminiscent of UncommonGoods’ “Sunny,” an AI-powered gift guide feature released in 2017. Both platforms aim to alleviate the stress associated with selecting the perfect gift by offering tailored recommendations based on specific inputs. UncommonGoods’ feature includes a text box for users to provide additional preferences, such as age group and specific hobbies.
Etsy’s Vision for Gift Mode
Etsy’s VP of Product, Tim Holley, emphasized that Gift Mode was developed to address the anxiety often associated with gift shopping. According to Etsy’s recent survey, 71% of respondents reported feeling anxious while shopping for gifts in the past year. Holley highlighted the platform’s commitment to becoming a year-round destination for gifting, offering a seamless and thoughtful shopping experience for users seeking meaningful gifts from independent sellers.
Integration of Machine Learning and OpenAI’s GPT-4
Holley explained that Gift Mode leverages a combination of machine learning, human curation, and OpenAI’s GPT-4 to provide a wide range of gifting recommendations. The platform’s existing advanced machine learning training and inference stack, which powers search and recommendations, was adapted to ensure that the listings included in the gift guides are of high quality and offered by sellers known for excellent customer service.
Etsy’s Focus on Generative AI
Etsy has been at the forefront of search technology and has recently intensified its focus on generative AI. CEO Josh Silverman expressed enthusiasm about the potential of new or large language models and generative AI to further enhance the platform’s user experience.
Future Enhancements and Programs
Etsy has previously introduced wedding and baby registries and plans to continue investing in the gifting space while enhancing Gift Mode’s capabilities over time. The platform also announced a new optional program, “Share & Save,” which offers sellers a reduced transaction fee of 4% when they share links to their Etsy store and make a sale. This initiative follows a previous fee increase that led to backlash from sellers in 2022.
With over 90 million customers and six million sellers, Etsy’s new AI-powered ‘Gift Mode’ is poised to transform the gifting experience for users, offering a curated selection of thoughtful and meaningful gifts from independent sellers.
