Etsy Insider: Membership-Program Beta Launch This September

Etsy Insider Beta: Key Insights

• Loyalty Program to Offer Customer Conveniences: The trial version of the membership program will test consumer perks such as free U.S. shipping and birthday rewards. If the overall response from subscribers is positive, Etsy will roll out the program to the general public.

• Etsy Responds to Growth Slowdown: As ECDB's proprietary data shows, Etsy's growth has slowed in recent years. The launch of a new membership program comes at a time when Etsy is facing macroeconomic issues and an influx of competing marketplaces.

Etsy has announced the launch of a new membership program for shoppers, which will be beta-tested with a select group of invite-only customers beginning in September. The test version of the Etsy loyalty program will charge members US$5 per month for perks like free U.S. shipping, birthday rewards, and a limited-edition tote bag, as well as other unspecified special access offers from select sellers. 

If consumers respond positively to the test program, it will be rolled out to the general public. The specifics of the program, including pricing and exact content, have not been determined at this time.

Membership Program in Response to Slowing Growth

Etsy's marketplace activity, as measured by GMV, has been on a very slow rebound since the post-pandemic downturn in sales in 2022. The loyalty program is an attempt to reinvigorate Etsy's platform performance by increasing buyer engagement.

The larger intent behind it is to elevate Etsy into a first stop for online shoppers to buy their products, as company officials see the largest piece of the pie going to competitors Amazon, Walmart, or eBay. Due to the economic difficulties of the past few years, consumers have not been as inclined to spend much on discretionary items, which Etsy primarily offers. Add to this the current trend of low-cost eCommerce sites from Asia entering the global scene, and Etsy's attempt to keep consumers on its platform becomes a strategy to fend off these competitors as well. 

Whether Etsy can sustainably increase platform engagement with the membership program remains to be seen. Refer to ECDB for the latest updates on the eCommerce profiles of Etsy and its peers.