Etsy, Inc.’s ETSY 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 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 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.
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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.
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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.
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Etsy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).