Apps & Consumer
Etsy launches native app within ChatGPT for conversational search
Etsy has launched a native app within ChatGPT to enable conversational product discovery, replacing a previous integration that suggested it failed to meet performance expectations.
On Tuesday, Etsy announced the launch of its native app within ChatGPT, introducing a conversational search experience designed to move beyond the limitations of traditional keyword queries. Instead of typing static keywords and manually filtering results, users can now search the platform’s catalog of over 100 million listings using natural language. For example, a shopper can prompt the chatbot to find a Mother’s Day gift under $100 for a recipient who loves gardening. Currently live in beta, the integration allows users to tag @Etsy directly in a prompt to surface relevant product listings, which users can browse, compare, and click through to Etsy’s platform for additional details or purchase.
This launch represents a shift in Etsy’s approach to conversational AI. In September, the company became an early partner in ChatGPT’s Instant Checkout integration, which allowed users to buy products directly inside the chat interface. However, that integration ended in March, suggesting it did not perform as OpenAI had hoped. Alongside the new ChatGPT app, Etsy is testing its own beta conversational search experience on its own platform to help users find gifts. This builds on Etsy’s broader AI initiatives, which include seller tools for generating product titles and descriptions, a writing assistant for buyer messages, and a “Designed” label introduced in 2024 to identify AI-generated content.
The integration follows Etsy’s Q1 2026 earnings report, which surpassed revenue expectations. Key financial and operational metrics from the quarter include:
- Revenue: $631 million.
- Marketplace gross merchandise sales (GMS): Up 6% year over year, representing the total value of merchandise sold on the platform.
- Active buyers: 86.6 million users, marking an increase for the first time in two years.
- Active sellers: 5.6 million users.
To focus on its core marketplace, Etsy announced in February that it was selling the fashion marketplace Depop to eBay for $1.2 billion in cash. With this new launch, Etsy joins other companies, including Angi, SeatGeek, Tubi, and Wix, that have built native apps within ChatGPT since developers were first permitted to do so in October.
Why it matters
Etsy is shifting its AI strategy toward conversational discovery to improve user experience, moving away from previous checkout-focused experiments that failed to gain traction. By focusing on natural language search, the company aims to make its massive catalog more navigable and boost engagement across its active buyer base.