Etsy (ETSY.US) will offer free shipping to its members to compete with platforms like Amazon.com, Inc.

At the Communacopia + Technology conference at Goldman Sachs Group, Inc., American cross-border e-commerce platform Etsy (ETSY.US) announced its plans for the future and new areas the company is exploring. Recently, the company launched Etsy Insider, a subscription plan that offers free shipping and early access to Drops for members. By introducing Etsy Insider, the company aims to enhance its competitiveness against Amazon.com, Inc., and increase customer retention. While Etsy and its competitors are competing for consumers' discretionary dollars, the company is focusing on initiatives that not only differentiate it from competitors like Amazon.com, Inc. (AMZN.US) but also present "significant" growth opportunities. One of the company's key initiatives is the huge gift market. CEO Josh Silverman and CFO Rachel Glaser estimate the gift market to be a $200 billion business, with Etsy currently only holding a 1% share. To expand its market share, Etsy has introduced "Gift Mode," allowing shoppers to send gift information to recipients before the gift arrives, along with enhanced search options to help shoppers find the perfect gift. The company is also focusing on app penetration. Currently, only 40% of Etsy shoppers use the mobile app, and Silverman hopes to increase this number to 75%. With increasing consumer engagement with the app, this initiative provides another "significant opportunity" for growth. Additionally, the recently added quality score will prioritize highly rated products in search results. Silverman expects that by including factors such as fast delivery, high ratings, and seller responsiveness, consumers will have more options when choosing products between sellers.