Lenny's Podcast · Sep 3Inside Etsy’s product, growth, and marketplace evolution | Tim Holley (VP of Product)
Grew from about $500 million to over $13 billion in GMV by rallying around GMS as one KPI after 2017. It built buyer confidence with review photos, nudges and a carbon-offset cart line that lifted conversion, and it stays distinct through strict policy and a 'keep commerce human' brand. About 80% of its experiments fail.
Tips
- Rally the whole company around one north star metric▶ 10:00Etsy had lacked this clarity before 2017; adopting GMS as the front-and-center KPI was a stark difference that helped the culture change.
- Pair a clear KPI with a narrative, and repeat it relentlessly▶ 11:55
- Add one-line values copy to the cart to lift conversion▶ 34:49The one-line sustainability text produced a huge, unexpected conversion uplift.
- Show real buyer photos and video in reviews to build confidence▶ 29:29Reviews have long been one of Etsy's most fruitful conversion tracks.
- Surface glanceable signals and nudges that help buyers decide▶ 30:50Etsy has seen great success on this track.
- Use the buyer experience to signal what sellers should do▶ 27:17
- Build retention on a habit loop of trigger and reward▶ 42:59
- Pay seller referrals in listing credits, not cash▶ 41:54It was not a huge growth driver overall, but worked well in certain markets and pockets. The earlier buyer referral program was not a big success.
- Value a new buyer by future purchases when judging referrals▶ 41:01The buyer referral program from roughly eight years earlier was not a huge success.
- Lean on long-tail inventory for SEO and Google Shopping▶ 39:06
- Test retention changes over 30, 60 and 90 day windows▶ 17:46Etsy's mask surge brought a huge influx of new or reactivated buyers it then had to retain.
- Add validation methods beyond A/B tests for big bets▶ 35:28Vast majority of Etsy changes are still A/B tested; expect about 80% of experiments not to work.
- Call sellers directly during demand spikes to learn their capacity▶ 15:50Traffic went from typical April to Black Friday levels overnight.
- Keep supply quality tied to brand and enforce policies▶ 46:52
- Cut projects that no longer fit new constraints▶ 54:30Etsy Studio, a craft inspiration and supplies marketplace, was shut down after the 2017 refocus.
- Staff squads with research, analytics and marketing, not only product, eng and design▶ 55:50
- Name one accountable decision maker, usually the PM▶ 57:52
- Hire PMs for collaboration, decisiveness and curiosity▶ 1:01:34
- Run a weekly focus post with a look back▶ 1:03:24
