Etsy will test its first-ever loyalty program
FILE-The Etsy app appears on a smartphone in 2023. (Tiffany Hagler-Geard/Bloomberg via Getty Images)
Etsy is launching its first-ever loyalty program starting in September.
The New York-based company tells the Associated Press that Etsy Insider will bolster its struggling sales and attract occasional consumers. Select buyers will get an invitation for the program which will offer free shipping in the U.S. and access to discounts.
Etsy did not reveal how much consumers must pay for the new loyalty program.
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But Raina Moskowitz, the company’s chief operating and marketing officer, tells the AP that the company will decide on whether to do a nationwide rollout of the program based on consumer reaction.
This move comes as Etsy reported a decline in sales during the first three months of 2024.
Citing financial data from Etsy, the AP reported that merchandise sales were down 5.3% compared to the same period in 2023, while consolidated sales, which includes purchases made by customers on two other online sites it owns, had dropped by 3.7%, after a mild decline in 2023.
Etsy experienced a surge in business during the pandemic as more consumers were isolated at home and used the site to buy products like artistic face masks.
However, when the pandemic was near the end, people were not buying items as often on Etsy resulting in challenges for the company amid ongoing competition from Temu, another online retailer.
The Associated Press contributed to this report. This story was reported from Washington, D.C.