Etsy Inc., the online marketplace known for handmade and vintage goods, is undergoing a significant leadership shakeup as it grapples with persistent sales declines in a post-pandemic world. On Wednesday, the company announced that longtime CEO Josh Silverman will step down from his role at the end of the year, transitioning to executive chairman of the board. His successor, Kruti Patel Goyal, currently Etsy’s president and chief growth officer, will take the helm effective January 1, 2026. This move comes amid efforts to reinvigorate the platform, which has seen gross merchandise sales drop for several consecutive quarters.

Goyal, a veteran of the company with over a decade of experience, previously led Depop, the resale app Etsy acquired in 2021. Her return to Etsy earlier this year was marked by the creation of a new chief growth officer position, signaling a strategic focus on expansion. According to reporting from The Information, this leadership change is part of a broader push to revive growth, as Etsy contends with slowing user engagement and competition from larger e-commerce players like Amazon and emerging AI-driven marketplaces.

Navigating Post-Pandemic Challenges

Silverman’s tenure, which began in 2017, was transformative. He steered Etsy through a period of rapid growth during the COVID-19 lockdowns, when demand for unique, personalized items surged. However, as consumer spending normalized, the company has struggled. Third-quarter results released alongside the announcement showed a 3.2% decline in gross merchandise sales to $2.9 billion, though revenue edged up slightly due to higher fees. Insiders note that Silverman, who will remain on the board, played a key role in stabilizing the company but faced criticism for not adapting quickly enough to shifting market dynamics.

Goyal’s appointment is seen as a bet on internal talent to address these issues. At Depop, she successfully targeted Gen Z consumers, boosting user acquisition through social media integrations and sustainability-focused campaigns. Bloomberg reported in its coverage of the transition that Goyal will need to “navigate the AI era,” leveraging artificial intelligence to enhance search, personalization, and seller tools—areas where Etsy has lagged behind rivals.

Strategies for Revival

To revive growth, Etsy under Goyal is expected to double down on its core strengths: authenticity and creativity. Plans include expanding into new categories like personalized gifts and sustainable products, while integrating AI to improve buyer-seller matching without alienating the platform’s artisanal ethos. CNBC highlighted in its analysis that the stock sank over 10% on the news, reflecting investor concerns about ongoing sales slumps, but also optimism around Goyal’s track record at Depop, where she turned around stagnating metrics.

Industry observers point to broader e-commerce trends, such as the rise of resale and thrift platforms, as opportunities for Etsy. The company’s family of brands, including Depop and musical instrument marketplace Reverb, provides diversification. As noted by Chain Store Age, Goyal’s elevation from chief growth officer underscores a data-driven approach to customer experience, with initiatives like enhanced mobile apps and targeted marketing to re-engage lapsed users.

Investor Reactions and Future Outlook

Wall Street’s mixed response underscores the high stakes. While some analysts praise the seamless transition—Silverman handpicked Goyal as his successor—others worry about macroeconomic headwinds like inflation and reduced discretionary spending. Moneycontrol emphasized that at 49, Goyal inherits a business with slowing growth, but her experience in scaling digital platforms could be pivotal.

Looking ahead, Etsy’s revival strategy may involve aggressive investments in technology and international expansion. Retail Dive reported that third-quarter results beat expectations on earnings per share, providing a modest tailwind. For industry insiders, this leadership pivot represents a critical juncture: can Etsy blend its quirky, community-driven model with cutting-edge AI to compete in an increasingly consolidated market? Goyal’s early moves will be closely watched, as they could define whether Etsy regains its momentum or continues to cede ground to nimbler competitors.