Etsy launches native application within ChatGPT as it pivots from failed checkout integration

Etsy has announced the launch of a native application within ChatGPT, marking a significant expansion of its artificial intelligence strategy. This new feature enables a conversational shopping experience where users can tag @Etsy directly in a prompt to browse over 100 million listings using natural language, moving beyond the limitations of traditional keyword queries and filters. The functionality is currently available in beta, allowing shoppers to describe what they are looking for rather than typing specific search terms.

This development follows the termination in March of a previous Instant Checkout integration with ChatGPT, which was reportedly discontinued due to low sales volume. While the earlier initiative allowed users to purchase products directly inside the chat interface, the initiative ended in March, suggesting it did not perform as OpenAI had hoped. Consequently, Etsy has shifted its approach to building a dedicated native app within the chatbot ecosystem instead.

Concurrently with this launch, Etsy is testing a separate beta conversational search assistant specifically designed for gift discovery on its own platform. This tool acts as a personal shopper, offering a guided, conversational way to discover ideas and narrow down preferences. These efforts build on the company's broader AI strategy, which includes AI-powered discovery tools, curated collections, and seller assistance features such as tools for generating product titles and descriptions.

The announcement coincides with Etsy's Q1 2026 earnings report, which showed revenue of $631 million and a rise in active buyers to 86.6 million. The strong financial performance, alongside a 6 per cent year-on-year increase in marketplace gross merchandise sales, provides a solid backdrop for the company's continued investment in technology. Notably, active buyers increased for the first time in two years, while the platform maintained 5.6 million active sellers.

Etsy joins a growing list of companies, including Angi, SeatGeek, Tubi, and Wix, building native apps within ChatGPT since October when developers gained the ability to create such applications. This move represents a strategic pivot to deepen engagement with the chatbot platform while the company continues to refine its core marketplace following the decision in February to sell Depop to eBay for $1.2 billion.

While the launch occurs shortly after the release of strong financial results, specific performance metrics or user adoption rates for the new native app within ChatGPT are not yet available as the feature remains in beta. The long-term viability of the conversational shopping model remains to be seen following the failure of the previous Instant Checkout integration, though Etsy remains committed to its broader AI roadmap.