Etsy’s implementation of a sophisticated machine learning model promises to enhance customer satisfaction by providing more accurate delivery dates, potentially boosting sales and improving the company’s shipping reputation.
Enhanced Delivery Predictions
Etsy has taken a significant step forward in optimizing its delivery system by introducing a machine learning model designed to provide customers with more accurate delivery dates. This technological advancement has led to a substantial reduction in estimated transit times for deliveries handled by the U.S. Postal Service, as reported by CEO Josh Silverman during a recent earnings call.
Impact on Customer Experience
The deployment of this model has had a remarkable impact, with Etsy now able to display estimated delivery dates of seven days or less for nearly three times as many orders as before. This improvement is not just about speed; it’s a strategic move to refine buyer perceptions of Etsy’s reliability and to stimulate growth in gross merchandise sales.
Strategic Moves and Future Goals
Etsy’s initiative is part of a broader strategy to dispel its image as a slow shipper and to reinforce its commitment to delivery reliability. The company has made significant strides, increasing the share of listings with a delivery date and the percentage of tracked U.S. domestic orders. Looking ahead, Etsy aims to reduce shipping times by a minimum of two days, addressing one of the primary concerns of potential buyers: the wait time for their unique, personalized items to arrive. This focus on delivery efficiency is particularly crucial as Etsy seeks to rebound from a dip in gross merchandise sales and continue growing its active seller and buyer community.
