Etsy expands AI strategy with launch of shopping app inside ChatGPT

Etsy announced Tuesday that it is launching a native app within ChatGPT, creating a new way for users to browse its catalogue of more than 100 million listings.

The new experience is designed to move beyond traditional keyword-based searches. Instead of entering queries like “wooden coffee table” and scrolling through results with filters, users can now describe what they want in natural language. For example, a user could say, “Help me find a Mother’s Day gift under $100 for my mom who loves gardening.”

Currently available in beta, the feature allows users to tag @Etsy directly within a ChatGPT prompt. The Etsy app then presents relevant product listings that users can browse, compare, and click through to Etsy’s platform for more details or to complete a purchase.

This is not Etsy’s first integration with ChatGPT. In September, the company participated as an early partner in ChatGPT’s Instant Checkout feature, which enabled users to purchase products directly within the chat interface. However, that initiative ended in March, indicating it may not have met expectations. Reports suggested Etsy did not see significant sales volume from the integration, prompting the company to develop a dedicated native app within ChatGPT instead.

At the same time, Etsy revealed it is testing a beta conversational search feature on its own platform, focused on helping users discover gift ideas. This tool serves as a personal shopping assistant, guiding users with suggestions, refining preferences, and presenting relevant products via a conversational interface.

These updates are part of Etsy’s broader push into AI-driven experiences. The company has already introduced an AI-powered discovery system featuring curated collections, along with tools for sellers that help generate product titles and descriptions and draft messages to buyers. In 2024, Etsy also rolled out a “Designed” label to identify AI-generated content, aiming to improve transparency as AI-created artwork becomes more common on the platform.

The ChatGPT integration comes shortly after Etsy reported its Q1 2026 financial results, posting $631 million in revenue and exceeding expectations. Marketplace gross merchandise sales rose 6% year over year, while active buyers increased to 86.6 million — the first growth in two years. The company also reported 5.6 million active sellers on its platform.

Earlier this year, Etsy announced it would sell Depop to eBay for $1.2 billion in cash, a move intended to refocus on its core marketplace business.

Etsy now joins a growing number of companies building native applications within ChatGPT, including Angi, SeatGeek, Tubi, and Wix. Developers have been able to create apps within the chatbot since October.