Etsy Introduces 'Gift Mode': An AI-Driven Feature Creating Over 200 Personalized Gift Guides

Etsy has rolled out “Gift Mode,” an innovative AI-driven feature designed to help you discover personalized gift ideas tailored to unique preferences.

Gift Mode functions as an engaging online quiz, prompting you to specify who you are shopping for (sibling, parent, child), the occasion (birthday, anniversary, get well), and the recipient’s interests. At launch, users can select from 15 specific interests, including crafting, fashion, sports, video games, pets, and more. Based on your selections, the tool produces various gift guides inspired by over 100 million listings on the platform, focusing on more than 200 distinct personas.

For example, consider personas like “The Music Lover,” “The Video Gamer,” “The Adventurer,” and “The Pet Parent.” Etsy plans to continuously evolve Gift Mode by adding new interests and personas that reflect “emerging trends,” according to Tim Holley, Etsy’s VP of Product.

Etsy has also introduced a “gift teaser” feature, allowing you to send the recipient a preview of the gift via email if it won’t arrive in time for the occasion. You can also add a personal gift note and tracking details.

In a similar vein, online retailer UncommonGoods launched its AI-driven gift guide feature, “Sunny,” in 2017, which suggests products based on the recipient’s age, interests, and more, including an optional text box for more specific details.

Etsy aims for Gift Mode to alleviate the stress associated with gift-giving. According to a recent survey by Etsy, 71% of participants reported feeling anxious while shopping for gifts in the past year.

“We developed Gift Mode upon realizing that while many brands offer great gifts, there wasn’t a focused and expansive shopping experience that addresses givers’ concerns while facilitating the selection of thoughtful, meaningful gifts. Etsy is now committed to improving the gifting experience year-round, positioning itself as the go-to destination for gifts,” Holley explained.

He further elaborated that the new feature employs a blend of machine learning, human curation, and OpenAI’s GPT-4 technology. “OpenAI’s GPT-4 allows us to support a broader range of gifting scenarios. We built this product on Etsy’s advanced machine learning infrastructure, which also drives our search and recommendation systems. We made specific adjustments to ensure that the listings included are ‘gifty,’ prioritizing high-quality items from sellers known for excellent customer service,” Holley noted.

AI has been integral to Etsy's search functionalities for years, and the company is intensifying its focus on generative AI. “We’ve been pioneers in search technology, and while we currently utilize large language models, we are thrilled about the potential of new models and generative AI to further enhance Etsy’s user experience,” Etsy CEO Josh Silverman told investors during a May 2023 earnings call.

Etsy has previously launched various gift-related offerings, such as wedding and baby registries, and aims to invest further in the gifting sector while continuously improving Gift Mode’s features. Recent programs like “Share & Save” allow sellers to share links to their Etsy stores, and after a sale, the platform accepts a reduced transaction fee of 4% instead of the standard 6.5%. The fee had previously risen from 5% to 6.5%, prompting backlash from sellers and leading to a strike.

With over 90 million customers and more than 6 million sellers, Etsy is committed to enhancing the experience for both buyers and sellers in the ever-growing eCommerce landscape.