Etsy, the online marketplace for unique and handmade items, has just introduced a new browseable search experience that leverages the power of artificial intelligence and human intelligence to curate collections of products.

The New Search Experience

The new search experience allows users to browse through curated collections that are based on trends, aesthetics, and occasions. These collections are created by experts who draw on their knowledge of current trends, aesthetics, and occasions to select a range of products that fit a particular theme.

  • For example, a collection for a “modern farmhouse” theme might include products such as vintage-inspired kitchenware, rustic home decor, and handmade crafts.
  • Similarly, a collection for an “island luxe” theme might feature products such as tropical-inspired home decor, nautical-themed accessories, and island-style furniture.

The collections are not just limited to these two themes. Etsy’s AI-powered algorithm can also generate collections based on trending aesthetics like “literary girl” or “urban loft.”

How the Search Experience Works

The search experience is based on a combination of human expertise and machine learning algorithms. The process works as follows:

  1. Experts select a range of products that fit a particular theme or aesthetic.
  2. The selected products are then used to train a machine learning algorithm to generate more products that fit the theme.
  3. The algorithm is then used to expand the initial 50 hand-picked listings to around 1,000 products.
  4. The final collection is then refined using large language models to ensure that it is aesthetically cohesive, represents a variety of products, and meets Etsy’s standards for quality.

This approach allows Etsy to provide users with a deeper understanding of individual buyer behavior and its inventory. By analyzing shopper activity, such as recent purchases and previously viewed items, the algorithm can determine the trends a user sees and prioritize the products that are most relevant to them.

Personalization and Predictive Analytics

Etsy’s new search experience also enables the company to provide more personalized product recommendations to its users. The more a shopper engages with the platform, the more the algorithm can learn about their preferences and provide recommendations that are tailored to their interests. The company’s data from last year’s AI gifting recommendation tool showed a demand for more inspiration, which ultimately led to the launch of the new search experience. According to Nick Daniel, Etsy’s chief product officer, the company is using a similar approach to create a more browseable experience. “What we found was people really were craving more inspiration,” Daniel said in an interview. “When we started with gift guides, we had a core set of gift guides that had a limited number of listings attached to them, and the resounding feedback that we got from our customers was they wanted more ideas. They also wanted more gifts per idea and that’s when we started leveraging AI and LLM’s to both generate more ideas for us, but also to generate more of the gift ideas that were attached to each of those.”

Machine Learning and Large Language Models

Etsy’s use of machine learning and large language models is also improving the company’s attribute extraction, alt text for images, summarizing product reviews, enhancing accessibility and SEO, Daniel said. “I think the real secret is leveraging LLM’s at the end to be able to then ask it to make sure there’s cohesion across the collection,” Daniel said. Etsy asks AI to decipher if items fit in a given collection to “ensure that we haven’t just algorithmically extended the seed collection, but we’ve done it in a way that still has that human touch.”
Etsy’s use of AI is “just scratching the surface right now,” Daniel said, but the company is committed to incorporating AI across its platform to provide users with a more personalized and engaging experience.

Benefits of the New Search Experience

The new search experience offers several benefits to Etsy users, including:

  1. A deeper understanding of individual buyer behavior and its inventory.
  2. A more personalized product recommendation experience.
  3. The ability to discover new products and trends.
  4. Enhanced accessibility and SEO.

Overall, Etsy’s new search experience is a significant step forward in the company’s use of AI and machine learning to provide users with a more personalized and engaging experience.

Expert Insights

According to Etsy’s chief product officer, Nick Daniel, the company’s use of AI is just the beginning of a larger transformation of its platform. “Etsy’s data from last year’s AI gifting recommendation tool showed a demand for more inspiration, which ultimately led to Wednesday’s launch of AI-generated, curated collections,” Daniel said. They also wanted more gifts per idea and that’s when we started leveraging AI and LLM’s to both generate more ideas for us, but also to generate more of the gift ideas that were attached to each of those.”
Daniel’s insights highlight the importance of understanding customer behavior and preferences when it comes to AI-powered platforms like Etsy.

Etsy’s AI-Powered Future

As Etsy continues to incorporate AI and machine learning across its platform, the company is committed to providing users with a more personalized and engaging experience. Etsy’s AI-powered future is marked by the integration of machine learning algorithms and large language models to create a more seamless and intuitive user experience.

“Etsy’s AI-powered future is all about providing users with a deeper understanding of individual buyer behavior and its inventory, as well as enhancing accessibility and SEO. We’re just getting started with AI, and we’re excited to see where it takes us,” said Daniel.

This vision for the future is centered on the idea of providing users with a more personalized and engaging experience, while also enhancing the company’s ability to predict buyer preferences and tailor product recommendations accordingly. The future of e-commerce is bright, and Etsy’s AI-powered platform is leading the way.

This is just the beginning of Etsy’s journey into the world of AI and machine learning, and the company is committed to continuing to innovate and improve its platform to provide users with the best possible experience.

As Etsy continues to push the boundaries of what is possible with AI and machine learning, the company is setting a new standard for e-commerce platforms and demonstrating the potential for AI to transform the way we shop and interact with online platforms.

The benefits of Etsy’s new search experience are clear, and the company’s commitment to incorporating AI across its platform is a testament to its vision for the future of e-commerce.

Conclusion

Etsy’s new search experience is a significant step forward in the company’s use of AI and machine learning to provide users with a more personalized and engaging experience. As the company continues to push the boundaries of what is possible with AI and machine learning, Etsy is setting a new standard for e-commerce platforms and demonstrating the potential for AI to transform the way we shop and interact with online platforms.