Etsy plans to test its first-ever loyalty program as it aims to boost sales

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Etsy plans to test its first-ever loyalty program as it aims to boost sales

2024-07-31 20:05 Last Updated At：20:40

Etsy said Wednesday it will begin testing its first-ever loyalty program in September, a move designed to boost the e-commerce site's sluggish sales and draw in occasional shoppers.

The New York-based company said select buyers will receive an invitation for the program, which will offer free shipping across the U.S. and access to discounts.

“We want people to start their shopping journey on Etsy rather than come to Etsy when they’re just looking for something very specific,” Raina Moskowitz, the company’s chief operating and marketing officer, said in an interview.

Etsy is launching the program — called Etsy Insider — with the aim of reversing a decline in its gross merchandise sales, a measure of the amount of goods sold over a certain period.

Etsy did not disclose how much customers must pay for the new loyalty program. But Moskowitz said the monthly fee will be close to the cost of a latte. She also said the company will decide on whether or not to do a nationwide rollout of the program after seeing what resonates with consumers.

The company with roots as an online crafts marketplace experienced a boom in its business during the COVID-19 pandemic, when homebound consumers turned to it for items such as artistic face masks. But it's been facing more challenges since the worst of the pandemic eased and consumers, who typically go on its site to buy discretionary items, began to feel more pressure from inflation. Like Amazon, it is also facing more competition from Temu, the online retailer owned by the Chinese e-commerce company PDD Holdings.

During the first three months of this year, Etsy reported merchandise sales on its marketplace were down 5.3% compared to the same period last year. Consolidated sales, which include purchases made by consumers on two other online sites it owns, had declined by 3.7%, following a slight dip last year.

The company's stock price has lost nearly 78% of its value since late 2021. In December, it said it would lay off 225 employees, which represented nearly 11% of its workforce.

Though Etsy’s business has softened due the wider economic environment and the loss of pandemic-era sales, some of the challenges can also be tied to the fact that the platform has become more challenging for shoppers to navigate, said Neil Saunders, managing director at GlobalData Retail.

Saunders said he calls the evolution the “junkification” of Etsy.

“Etsy used to be a very focused site that really was about makers, crafting, authentic and unique products,” he said. “That’s still true to some extent, but there’s a lot more junk on the site and a lot of random things being sold.”

Furthermore, Saunders said Etsy's search functions have gotten worse, which has the potential to turn customers off.

More recently, the company has put more focus on returning to its artisan roots as it seeks to differentiate itself in a competitive e-commerce landscape.

Littell allows 1 hit in 7 innings and Rays beat Red Sox 2-0

2024-09-20 09:26 Last Updated At：09:30

ST. PETERSBURG. Fla. (AP) — Zack Littell allowed one hit over seven innings and the Tampa Bay Rays beat the Boston Red Sox 2-0 on Thursday night.

Littell (8-9), who made his team-leading 28th start in his first full season as starter, struck out seven and did not issue a walk. After Edwin Uceta pitched a perfect eighth, Garrett Cleavinger worked a 1-2-3 ninth to get his sixth save in seven chances.

“I don’t think we could have predicted the amount of success, the workload,” Cash said of Littell. “Just how much day-in and day-out giving us chances to win.”

Nick Sogard's two-out single in the third was Boston's only hit of the game.

Boston starts a three-game series at Fenway Park against Minnesota on Friday, trailing the Twins and Detroit by four games for the final AL wild card. The Red Sox would also need to jump over Seattle. The Rays are five games out of the third wild-card position.

“Uphill battle, it’s tough,” Boston manager Alex Cora said. “Realistically it’s very tough. But we have three games against (the Twins).”

Both the Red Sox and Rays have nine games remaining.

Boston has gone 22-35 since the All-Star break.

The Rays need to go 2-1 or better this weekend against Toronto in their final home series of the season to have an eighth consecutive winning record at home.

“I don’t think there’s anything glaring other than at the end of the day we just have not performed like we’re capable of,” Cash said.

Brandon Lowe drove in a run with a third-inning sacrifice off Brayan Bello (14-8). Bello gave up one run, five hits, two walks and struck out seven over 5 2/3 innings.

Dylan Carlson made it 2-0 on a run-scoring grounder in the seventh.

Boston slugger Rafael Devers went 0 for 3 with three strikeouts. He was hitless in 11 at-bats, including eight strikeouts, in the series.

“Right now, collectively, we’re slumping,” Cora said. “Same thing has been happening for a month and half.”

TRAINER'S ROOM

Red Sox: Closer Kenley Jansen, who has had some shoulder-lat issues, threw before the game after getting his 27th save on Wednesday and is fine … RHP Lucas Sims (right lat) was reinstated from the 15-day IL. … RHP Luis García (right elbow inflammation) could be back in the next few days.

Rays: Shane McClanahan (Tommy John surgery) is looking forward to throwing to hitters for the first time next Thursday. “It’s exciting,” McClanahan said, “I miss it. Miss it to death,”

UP NEXT

Red Sox: Face Minnesota RHP David Festa (2-6, 5.07 ERA) on Friday night. Boston has not announced its starter.

Rays: LHP Tyler Alexander (6-5, 5.58 ERA) will start or follow an opener Friday night against Toronto RHP José Berríos (16-9, 3.44 ERA). Berríos is 7-0 with an 1.51 ERA over his last seven starts.

AP MLB: https://apnews.com/hub/MLB