Breaking News: Etsy Is Changing SEO Forever with NEW Updates

Summary

Etsy's CEO, Josh Silverman, has announced significant changes to the platform's search algorithm during the Q2 investor call. The update aims to enhance visibility for small and medium-sized shops by reducing duplicate search results and focusing on the diversity and uniqueness of listings. Etsy will empower sellers with more insights into listing quality and completeness to improve search visibility. The shift from a conversion-based approach to a recommendation engine is expected to increase buyer engagement and support niche-based shops, potentially changing the SEO landscape for the platform.

Takeaways

• 🔍 Etsy's search algorithm is undergoing changes to prioritize listing quality and diversity over pure conversion rates.
• 📈 Recent search experiments have led to approximately 70% of shops gaining more visibility in search results, especially benefiting small and medium-sized shops.
• 📊 The share of search impressions for small and medium shops has increased by nearly 30%, indicating a more level playing field for different sellers.
• 🛍️ Etsy aims to provide a more holistic shopping experience by reducing the occurrence of identical or very similar items dominating search results.
• 🤖 Large language models and generative techniques are being utilized to better understand shopping missions and seller inventory to enhance search and recommendations.
• 🚀 Later in the summer, Etsy plans to empower sellers with more agency and actionable insights related to listing quality and completeness.
• 🔑 The shift in Etsy's search algorithm is moving away from a keyword-based search towards a recommendation engine, similar to YouTube's browse and suggest approach.
• 📉 There is a potential risk that the new search algorithm could initially decrease conversion rates as it prioritizes discovery over direct sales.
• 🎯 Etsy is focusing on 'discovery' to show users items they might not have thought to search for, aiming to increase repeat visits and purchases.
• 🏷️ Sellers are advised to focus on high-quality images and relevant tags to improve their chances of appearing in Etsy's new discovery-focused search results.
• 🧩 Niche-based shops may have an advantage in the new ecosystem due to the associative data that ties into each other, making it easier for the algorithm to make relevant suggestions.

Q & A

What recent changes has Etsy made to its search algorithm?

Etsy has shifted its focus from a conversion-based ranking system to a more diverse and quality-focused approach, aiming to highlight the best of Etsy and its sellers' unique merchandise.

How has the new search algorithm affected visibility for small and medium shops?

The new search experiments have resulted in approximately 70% of shops having more visibility in search, with small and medium shops experiencing an increase in search impressions by nearly 30%.

What does Etsy consider as 'duplicate search results' and how are they addressing it?

Duplicate search results refer to multiple listings that appear very similar when a user searches for an item. Etsy is working to diversify these results by incorporating a mix of the most likely products to be purchased along with other items that the user might not have considered.

What is the significance of using large language models and generative techniques in Etsy's new initiatives?

Large language models and generative techniques help Etsy to better understand both the shopping mission of the user and the inventory of the sellers, allowing for more accurate and diverse search results.

How does Etsy plan to empower sellers with more agency and actionable insights?

Later in the summer, Etsy will provide sellers with more control and insights into factors like listing quality and completeness that can impact how their products show up in search.

What impact has the reduction of identical listings in search results had on Etsy?

The reduction has led to a more diverse and higher-quality set of listings being shown to buyers each time they visit Etsy, potentially increasing future visitation.

How does Etsy's new approach to search differ from the past focus on conversion rates?

Previously, Etsy's search algorithms ranked each listing based on the likelihood to convert. Now, the focus is on showcasing a broader variety of items to cater to the needs of the majority of users who are not necessarily ready to buy.

What is the potential impact of Etsy's new search algorithm on buyer behavior?

The new algorithm may encourage buyers to visit Etsy more frequently as they are presented with a more diverse range of products, potentially increasing the likelihood of repeat visits and purchases.

How does the new search algorithm relate to the concept of 'Discovery' on Etsy?

The new algorithm aims to enhance the discovery aspect of shopping on Etsy by suggesting items and categories that the user might not have considered, moving away from a purely search-based experience.

What are the implications of the new search algorithm for niche-based shops on Etsy?

Niche-based shops may have an advantage in the new ecosystem as the associative data from their specialized products and buyer behaviors can be more effectively utilized by the recommendation engine.

How should sellers adapt their strategies in response to Etsy's new search algorithm?

Sellers should focus on improving listing quality, including high-quality images and relevant tags, to ensure their products are more likely to be featured in the new recommendation-based search results.