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Etsy is increasingly shifting from keyword-based search to a fully personalized, AI-powered shopping experience. During its Q1 2025 investor call, Etsy leadership confirmed the platform now learns from behavioral signals—like clicks, favorites, add‑to‑carts, and dwell time—to determine visibility in curated feeds.

Over 44.5% of all sales now happen in the Etsy app, driving personalized discovery and influencing search ranking. 

What’s Actually Changing in Etsy’s Algorithm 

  • Etsy’s search now leverages AI-based personalization, showing buyers curated product suggestions based on prior interactions, similar to TikTok or Pinterest. 
  • In-app signals (clicks, saves, time spent) increasingly determine algorithm performance—not just titles and keywords. 
  • The Etsy app has become the dominant channel, commanding over 44% of total GMS in Q2 2025—up from 41% in Q1.

What This Means for Sellers

  • Listing photos now matter more than ever: Your thumbnail must quickly communicate product relevance and appeal.
  • Titles must be clear and mobile‑first: The first few words are critical. So keep it product-centric and concise.
  • User behavior directly impacts visibility: Listings with high engagement rise in personalized feeds.
  • Brand presence matters: Emotional, aspirational visuals improve click-throughs and conversions.

What Sellers Should Do Now

  • Upgrade your images with lifestyle mockups, key details overlay, and high-contrast visuals that sell in seconds.
  • Lead with clarity in titles: Front-load keywords and avoid fluff.
  • Drive engagement using calls to favorite, add‑to‑cart, or visit other listings.
  • Track performance: Identify low-click and low-conversion listings and refresh them.
  • Build your own following: Start an email list or social channel to maintain contact beyond Etsy’s algorithm.

How CedCommerce Helps

As Etsy shifts to a personalized, behavior-driven algorithm, CedCommerce provides end-to-end support to help your shop stay visible, engaging, and compliant:

  • Advanced Listing Optimization: SEO-rich titles, strategic tags, buyer-focused descriptions, and compliant categories to boost visibility and conversions.
  • Product Uploads & Profiling: Fast, accurate product uploads with backend alignment and bulk listing support for seamless launches.
  • Professional Image Enhancement: White backgrounds, lifestyle mockups, infographics, and seasonal creatives for a visual edge.
  • Impactful Video Creation: Etsy-ready product walkthroughs, lifestyle clips, and how-to videos that drive engagement.
  • Shop Branding & Storefront Design: Custom banners, responsive layouts, and storytelling that build loyalty.
  • Behavior Analytics: Insights into favorites, clicks, and dwell time to optimize performance.
  • End-to-End Account Management: Daily monitoring, weekly optimizations, compliance, customer support, and monthly reports while you focus on creating.

With CedCommerce by your side, you’re not just keeping up with Etsy’s changes; you’re leveraging them to grow faster.

Bottom Line

Etsy is no longer just a search-based marketplace; it’s a personalized, AI-curated experience. Sellers who rely solely on old-style SEO will fall behind. To stay competitive in 2025, optimize visuals, front-load clarity in titles, and focus on driving user engagement.

CedCommerce gives sellers the insights, tools, and strategic support to thrive as Etsy redefines discovery with personalization. Let’s help you transition from search-based tactics to behavior-driven success.

Source: Etsy, Retail Dive
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Etsy Etsy Algorithm etsy marketplace sell on etsy