Etsy has picked Kruti Patel Goyal, former head of Depop and, most recently, Etsy’s president and chief growth officer, to become its incoming chief executive. Longtime CEO Josh Silverman will become executive chairman, aiding in a transition of power as the marketplace weathers slowing growth and shifts in buyer behavior. Shares dropped by up to 9% following the announcement, demonstrating investors’ concern over the incoming turnaround blueprint.
A veteran operator with deep marketplace experience
Goyal has substantial experience with Etsy. Over more than a decade, she held senior roles spanning product, marketplace integrity, and growth before leading Depop, the social commerce platform Etsy acquired four years ago. Goyal returned to Etsy at the beginning of the year as president and chief growth officer, which put her in charge of buyer activation, seller success, and product strategy. Depop’s current trajectory reflects her track record: in the most recent quarter, active sellers grew by 40% to 3 million; active buyers advanced by 38% to 6.6 million; and gross merchandise sales surged by 39.4% to $292.1 million. That growth profile is praiseworthy in a broader marketplace category that has been uneven post-pandemic.
Why the leadership change at Etsy matters right now
Etsy’s core marketplace has cooled. For the quarter ended September 30, active buyers fell 5% year over year to 86.6 million, and active sellers declined 10.9% to 5.5 million; GMS dipped 2.4% to $2.4 billion, signaling pressure on both demand and supply. In July, the company suffered through a user boycott following its decision to allow the sale of merchandise branded “Alligator Alcatraz.” Hardly a scandal, it nevertheless tested consumer trust and brand safety. In light of the above, the board is betting that Goyal’s blend of product rigor and social-commerce instincts can reaccelerate buyer growth and reengage lapsed sellers. Goyal’s experience building Depop’s Gen Z community and transaction loops aligns with what Etsy needs; shopping is shifting toward more social, creator-led, and values-driven behavior.
What Goyal is likely to prioritize first
- Discovery: invest to improve on-site search relevance, personalized recommendations, and social shopping features that more closely mirror Depop’s community dynamics. Improving conversion without increasing ad load can stabilize GMS per active buyer while preserving the handmade and vintage feel.
- Seller health: simplify fees, improve ad return-on-investment transparency, and ensure policy consistency. Reduce churn with faster, more reliable dispute resolution and clear, comprehensive guidelines for currently restricted content.
- Brand safety and integrity: tighter moderation and better escalation pathways. Scale trust-and-safety tooling, make enforcement more category-specific, and increase proactive content checks—all operational playbooks Etsy can borrow from Depop and other large marketplaces.
A market leaning into recommerce and community
Etsy sits at the intersection of unique goods and a rapidly expanding resale economy. Peer platforms and other community-driven marketplaces have captured younger consumers by linking commerce and community. According to several industry estimates, such as thredUP’s 2024 Resale Report, in the coming years secondhand is expected to expand faster than retail, with apparel and accessories leading the trend—critical to both Etsy and Depop. By aligning more closely with Depop’s capabilities, Etsy can reach a younger demographic without straying from its handmade, vintage, and bespoke roots. Cross-pollinating creator resources, storefront personalization, and peer-to-peer interaction may boost brand loyalty and repeat purchase frequency.
Continuity with a mandate for change at the top
After leading Etsy through a turbulent eight years, including a pandemic boom cycle, changes to the fee model, and acquisitions such as Depop and Reverb, Silverman will become executive chairman. The move maintains continuity of operations, giving Goyal space to drive near-term operational changes while he provides strategic guidance at the board level.
Key metrics that will signal early progress for Etsy
- Stabilization in active buyers, reactivation rates among lapsed users, and GMS per active buyer.
- On the supply side: net new seller additions, listing quality, and on-time delivery rates.
- Take rate relative to seller satisfaction, trust-and-safety resolution times, and repeat purchase frequency.
Etsy’s decision signals urgency but also conviction that community-led commerce can still compound at scale. If Goyal can translate Depop’s social flywheel into Etsy’s broader marketplace, the company has a credible path to reignite growth—without surrendering the distinctiveness that built its brand.
