The news: Etsy is betting on a new CEO to help revitalize its business after years of sluggish growth.

• Kruti Patel Goyal, the company’s chief growth officer, will take over the job from Josh Silverman on January 1, 2026.
• Etsy announced the news as it reported another mixed quarter: While Q3 earnings and revenues beat expectations, gross merchandise sales (GMS) fell more than expected.

The challenges: Goyal has a difficult job ahead of her. While Etsy has made myriad moves to attract shoppers—including investing in AI-powered personalization and search, cracking down on products that violate its handmade policy, and rolling out a “Gift mode”—those efforts have largely failed to reignite sales.

• Etsy marketplace GMS declined 2.4% YoY in Q3, the eighth-straight quarter of contraction.
• We expect Etsy’s US sales to fall 5% YoY this year, marking the fourth consecutive year of declines.

Despite the steady drop in GMS, Etsy has managed to keep revenues growing by squeezing more ad dollars from sellers. But that strategy has its limits, especially as the end of de minimis import exemptions adds more costs—and red tape—for small businesses.

The opportunity: The decision to elevate Goyal, formerly the head of the Depop unit, is a clear sign of the resale platform’s growing importance for Etsy.

• While Depop’s GMS is roughly one-tenth of Etsy’s, the former is experiencing significant growth.
• Global GMS rose 39.4% YoY in Q3—59% in the US—while the number of active buyers jumped 38.8%. Active sellers increased 40.8%, ensuring a steady flow of new inventory to the marketplace and extending its pool of potential advertisers.

Our take: Etsy is in a tough spot. The combination of economic uncertainty and a cost-of-living crisis are dampening demand for the discretionary items that it sells, while tariffs and the end of de minimis make it harder for sellers to operate.

• While Depop’s success is a positive sign, the platform is not large enough to offset Etsy’s broader GMS declines.
• Given those notable challenges, it’s no surprise the retailer is looking for fresh ways to get in front of shoppers—including by partnering with ChatGPT.