With marketplace growth slowing, Etsy turns to the former Depop CEO to revitalize its strategy and restore user confidence.
Leadership Shift at a Critical Juncture
Etsy has announced a significant leadership change as long-time CEO Josh Silverman prepares to step down by the end of the year. Taking the reins is Kruti Patel Goyal, the company’s current president and chief growth officer — and the former CEO of Depop, the youth-focused resale platform Etsy acquired in 2021.
- Silverman, who led Etsy for eight years, will transition to the role of executive chairman.
- Goyal has been with Etsy for over a decade, with leadership roles spanning strategy, growth, and operations.
- Her Depop tenure was marked by strong growth in a competitive social commerce space.
Why the Change? Slowing Growth and User Decline
Etsy is facing stagnating marketplace performance, with key metrics in decline:
- Active buyers fell 5% year-over-year to 86.6 million.
- Active sellers dropped by 10.9% to 5.5 million.
- Gross merchandise sales (GMS) declined 2.4% to $2.4 billion in Q3.
The company also faced reputation challenges, including a user boycott in July over controversial products like “Alligator Alcatraz” merchandise.
A Bright Spot: Depop’s Momentum Under Goyal
By contrast, Depop thrived under Goyal’s leadership, making her appointment a strategic bet on revitalization:
- Active sellers on Depop surged 40% to 3 million.
- Active buyers increased 38% to 6.6 million.
- Depop’s GMS rose by a substantial 39.4%, hitting $292.1 million in the same quarter.
Her success at Depop suggests she could inject new energy and innovation into Etsy’s core marketplace, especially in targeting younger, socially driven consumers.
Market Reaction and the Road Ahead
Despite the promising leadership transition, investors responded cautiously, with Etsy shares falling nearly 9% following the announcement. The stock dip reflects:
- Concerns over continued user loss
- Skepticism about short-term turnaround prospects
- Uncertainty about how Goyal will differentiate Etsy in a crowded e-commerce landscape
Goyal will be tasked with:
- Rebuilding buyer and seller trust
- Reinvigorating Etsy’s brand and user experience
- Leveraging her Depop playbook to modernize and personalize shopping on Etsy
Etsy names Kruti Patel Goyal, former Depop CEO, as its new chief executive after buyer and seller numbers declined in Q3. With Depop’s strong growth under her leadership, Etsy is betting on Goyal to revive engagement and reposition the marketplace for future growth.
