We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Can Etsy's Loyalty Initiatives Unlock Higher Buyer Lifetime Value?
Read MoreHide Full Article
Key Takeaways
Etsy is embedding loyalty into personalization, support and Etsy Insider to deepen repeat buying.
App users deliver 40% higher lifetime value, while mobile GMS rose 11.2% in first-quarter 2026.
AI-driven profiles, feeds and recommendations improved add-to-cart activity, conversion and engagement.
Etsy, Inc.’s (ETSY - Free Report) focus on retaining and rewarding its most valuable customers centers on deepening engagement across the buyer experience. Rather than relying on a standalone loyalty program, the marketplace is weaving loyalty efforts into personalized recommendations, targeted offers, customer support and programs such as the Etsy Insider beta.
The mobile app is central to that effort. Etsy said app users have 40% higher lifetime value than non-app users because they visit more often, engage more deeply and convert at higher rates. The company is investing in AI-generated buyer profiles, personalized home feeds, smarter recommendations and more targeted push communications to better reflect individual interests. Early testing has produced improvements in add-to-cart activity, conversion and overall engagement.
In the first quarter of 2026, mobile app Gross Merchandise Sales (“GMS”) rose 11.2% year over year, accelerating from 6.6% growth in the preceding quarter. The app accounted for approximately 47% of total GMS, up about 240 basis points year over year. Gross buyer additions increased 4.8% to 11.9 million, including 5 million new buyers and 6.9 million reactivated buyers. GMS per active buyer reached $122, rising 1.5% year over year and 1.1% sequentially.
Etsy is also making targeted structural updates, including enhanced Purchase Protection and dedicated customer support resolution for top buyers. By sharing loyalty initiatives across product, engineering and operational teams, the platform focuses on systematically turning initial consumer engagement into durable, long-term repeat purchase behavior.
How eBay & Shopify Compare With Etsy
eBay Inc. (EBAY - Free Report) is also strengthening customer lifetime value by deepening buyer engagement. eBay continues to invest in trusted shopping experiences through features such as Guaranteed Fit, Authenticity Guarantee, AI-powered discovery and eBay Live, all aimed at improving conversion and encouraging repeat purchases. Management also highlighted that AI-powered search refinements are driving higher engagement and double-digit increases in purchase behavior, reinforcing eBay’s strategy of building long-term buyer loyalty through differentiated experiences.
Shopify Inc. (SHOP - Free Report) is pursuing a similar objective by expanding its buyer ecosystem and improving merchant conversion. Shopify highlighted that Shop Pay, the Shop app and AI-powered commerce tools are helping merchants attract new shoppers while increasing repeat purchases. Shopify also noted that AI-driven traffic, personalized product discovery and its growing buyer network are strengthening customer engagement, supporting a flywheel that enhances buyer lifetime value while enabling merchants to build lasting customer relationships.
What the Latest Metrics Say About Etsy
Etsy has seen its shares jump 24.2% over the past three months against the industry’s 6.2% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, Etsy's forward 12-month price-to-earnings ratio stands at 13.71, lower than the industry’s ratio of 21.63. ETSY is also trading below its 12-month median level of 20.01.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Etsy's earnings per share has been revised upward. The consensus estimate for the current fiscal year has risen from $5.41 to $5.44, while the estimate for the next fiscal year has jumped from $6.29 to 6.37 over the past seven days.
View the Zacks #1 Rank List
Image: Bigstock
Can Etsy's Loyalty Initiatives Unlock Higher Buyer Lifetime Value?
Key Takeaways
Etsy, Inc.’s (ETSY - Free Report) focus on retaining and rewarding its most valuable customers centers on deepening engagement across the buyer experience. Rather than relying on a standalone loyalty program, the marketplace is weaving loyalty efforts into personalized recommendations, targeted offers, customer support and programs such as the Etsy Insider beta.
The mobile app is central to that effort. Etsy said app users have 40% higher lifetime value than non-app users because they visit more often, engage more deeply and convert at higher rates. The company is investing in AI-generated buyer profiles, personalized home feeds, smarter recommendations and more targeted push communications to better reflect individual interests. Early testing has produced improvements in add-to-cart activity, conversion and overall engagement.
In the first quarter of 2026, mobile app Gross Merchandise Sales (“GMS”) rose 11.2% year over year, accelerating from 6.6% growth in the preceding quarter. The app accounted for approximately 47% of total GMS, up about 240 basis points year over year. Gross buyer additions increased 4.8% to 11.9 million, including 5 million new buyers and 6.9 million reactivated buyers. GMS per active buyer reached $122, rising 1.5% year over year and 1.1% sequentially.
Etsy is also making targeted structural updates, including enhanced Purchase Protection and dedicated customer support resolution for top buyers. By sharing loyalty initiatives across product, engineering and operational teams, the platform focuses on systematically turning initial consumer engagement into durable, long-term repeat purchase behavior.
How eBay & Shopify Compare With Etsy
eBay Inc. (EBAY - Free Report) is also strengthening customer lifetime value by deepening buyer engagement. eBay continues to invest in trusted shopping experiences through features such as Guaranteed Fit, Authenticity Guarantee, AI-powered discovery and eBay Live, all aimed at improving conversion and encouraging repeat purchases. Management also highlighted that AI-powered search refinements are driving higher engagement and double-digit increases in purchase behavior, reinforcing eBay’s strategy of building long-term buyer loyalty through differentiated experiences.
Shopify Inc. (SHOP - Free Report) is pursuing a similar objective by expanding its buyer ecosystem and improving merchant conversion. Shopify highlighted that Shop Pay, the Shop app and AI-powered commerce tools are helping merchants attract new shoppers while increasing repeat purchases. Shopify also noted that AI-driven traffic, personalized product discovery and its growing buyer network are strengthening customer engagement, supporting a flywheel that enhances buyer lifetime value while enabling merchants to build lasting customer relationships.
What the Latest Metrics Say About Etsy
Etsy has seen its shares jump 24.2% over the past three months against the industry’s 6.2% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, Etsy's forward 12-month price-to-earnings ratio stands at 13.71, lower than the industry’s ratio of 21.63. ETSY is also trading below its 12-month median level of 20.01.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Etsy's earnings per share has been revised upward. The consensus estimate for the current fiscal year has risen from $5.41 to $5.44, while the estimate for the next fiscal year has jumped from $6.29 to 6.37 over the past seven days.
Image Source: Zacks Investment Research
Etsy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.