Etsy taking on Amazon with free shipping through Etsy Insider membership

Although Etsy (NASDAQ:ETSY) and its competitors are fighting for the scarce discretionary dollars consumers have, the company is focusing on initiatives that will not only distinguish it from rivals like Amazon (AMZN), but lead to “tremendous” growth opportunities.

At the Goldman Sachs Communacopia + Technology Conference, Etsy (ETSY) CEO Josh Silverman and CFO Rachel Glaser laid out their plan for Etsy’s (ETSY) future and new areas that the company is leaning into.

The number one initiative for the company is the huge market for gifting. Silverman and Glaser estimate that gifting is a $200B business, and with Etsy (ETSY) realizing only 1% of the gifting market, there is a “great opportunity to win at gifting.” To expand its market share, Etsy (ETSY) has introduced “gift mode” which provides shoppers an opportunity to send a gift message to the receiver before it arrives, along with expanded search options to help shoppers find the perfect gift.

The company is also focusing on app penetration. With only 40% of current Etsy (ETSY) shoppers using the mobile app, Silverman hopes to increase that number to 75%. And with greater engagement by shoppers on the app, the initiative presents yet another “big opportunity” for growth.

Also, a recently added quality score will put higher rated products at the top of the search. Silverman expects that by including scores for faster shipping, higher reviews, and which sellers answer questions, customers will have more options when choosing merchandise between sellers.

Finally, the company recently launched Etsy Insider, a paid subscription program that will provide free shipping to members along with access to Drops Early merchandise. With Etsy Insider, the company aims to become more competitive to Amazon (AMZN) and increase the frequency of repeat shoppers.