🌟 Etsy's Q3 2025 earnings reveal excitement and early success in leveraging AI-driven agentic commerce through its pioneering OpenAI partnership, positioning the company for future growth and innovation! 🤖📈
Generated by Dafinchi AI. Source-grounded AI analysis, not investment advice.
Agentic Commerce
Etsy’s management discusses Agentic Commerce as a significant emerging opportunity that aligns well with Etsy’s unique marketplace positioning and brand strength. The concept is addressed primarily by CEO Joshua Silverman and COO Kruti Goyal during the Q&A portion of the earnings call, highlighting strategic implications, early performance data, and the company’s proactive partnership with OpenAI.
Etsy views agentic commerce—shopping experiences mediated by AI agents or assistants—as a transformative shift in e-commerce that many competitors may find challenging because they largely compete on price and speed for commoditized products. Etsy, by contrast, offers unique, differentiated products and a strong brand that can stand out in agentic commerce environments.
“We are incredibly excited about the opportunity for Etsy in a world of agentic commerce. And being the first partner to partner with OpenAI, we think, is a demonstration of the fact that we see a ton of opportunity where many others in e-commerce... are feeling the need to play more defense.”
— Joshua Silverman
Etsy’s early partnership with OpenAI allows it to be “at the table” shaping how agentic commerce evolves, including how Etsy’s brand and product data are presented to consumers through AI agents. This early involvement is seen as a competitive advantage.
“Our ability to be at the front edge of this we think positions us really well to help shape what agentic commerce can be... how our brand is presented, for example, which is very important to us.”
— Joshua Silverman
Etsy provides a direct data feed to OpenAI, enabling buyers to complete purchases within the AI platform while still transacting through Etsy’s payment system. Etsy pays a commission-based fee to OpenAI for these transactions, similar to affiliate or influencer fees, but currently does not pass this cost onto sellers.
“OpenAI and the others will scrape Etsy and organically provide Etsy listings... But if you want to actually purchase... we provide a data feed directly to OpenAI... it still shows up as a guest checkout on an Etsy customer, and it's very clear to the customer that they're buying from Etsy.”
— Joshua Silverman
“We pay a commission, a success-based transaction fee to OpenAI for each of those purchases... At this time, we are not passing that through to our sellers.”
— Joshua Silverman
Management emphasizes that agentic commerce will complement rather than replace traditional app or direct shopping. Consumers will shop “agenticly” sometimes and use Etsy’s app or website at other times, creating a virtuous cycle that increases brand awareness and consideration.
“I don't think it's a zero-sum game... people are going to shop agenticly sometimes... And in that offering of here's a few curated choices, I think disproportionately Etsy is going to be presented and is going to win... And those customers are also going to go and launch their app.”
— Joshua Silverman
Kruti Goyal adds that showing up where consumers discover products is critical, and agentic commerce is an important channel in evolving shopping behavior.
“It's really important that we are showing up where they are discovering. And this is a really great example of that.”
— Kruti Goyal
While still in very early stages, Etsy reports encouraging initial results from the OpenAI partnership. Traffic from agentic commerce sources shows higher intent and better conversion rates than typical search traffic, though the absolute volume remains small.
“We definitely saw a spike in purchases from that, but off of a very, very small base... The early data is that the traffic coming from agents is higher intent than traffic even that we normally get from search.”
— Joshua Silverman
Management remains optimistic about the long-term potential of agentic commerce but cautions that it is still early days.
Etsy’s brand plays a crucial role in agentic commerce by providing trust and confidence to buyers, especially since many sellers are unbranded individuals. Etsy’s brand presence alongside seller shops helps elevate buyer trust in the agentic shopping experience.
“Etsy as a brand should be pulled through in the agentic experience... When you're shopping with an agent, you want to see it's this seller powered by Etsy.”
— Joshua Silverman
Etsy views agentic commerce as a strategic growth avenue that leverages its unique product assortment, strong brand, and engineering capabilities. The company’s early partnership with OpenAI positions it to influence the development of this new commerce channel. While still nascent, agentic commerce is expected to complement Etsy’s existing channels, increase brand consideration, and drive higher-intent traffic and transactions. Etsy is absorbing the associated transaction fees for now, treating them like affiliate costs, and is focused on long-term value creation rather than short-term margin impact.
“We are incredibly excited about the opportunity for Etsy in a world of agentic commerce... Our ability to be at the front edge of this we think positions us really well to help shape what agentic commerce can be.”
— Joshua Silverman
“The early data is that the traffic coming from agents is higher intent than traffic even that we normally get from search.”
— Joshua Silverman
“I don't think it's a zero-sum game... people are going to shop agenticly sometimes... And those customers are also going to go and launch their app.”
— Joshua Silverman
“It's really important that we are showing up where they are discovering. And this is a really great example of that.”
— Kruti Goyal
This discussion reflects Etsy’s proactive and confident approach to integrating AI-driven commerce innovations into its marketplace ecosystem, aiming to sustain and grow its competitive differentiation in a rapidly evolving retail landscape.
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