Etsy turnaround shows Big Lots workers inventory and service still drive sales

Etsy’s turnaround story landed on a basic retail lesson Big Lots workers know well: shoppers still respond to merchandise that feels fresh and to associates who make the trip easier. The company said first-quarter revenue reached $631 million and gross merchandise sales hit $2.5 billion for the quarter ended March 31, with marketplace revenue up more than 6% even as active buyers fell from a year earlier.

The more important signal was in how Etsy explained the gain. Kruti Patel Goyal, who became chief executive in January after serving as president since January 2025, said the quarter showed early progress in the company’s reset. Etsy’s shareholder letter said active buyers grew sequentially for the first time in two years, though they were still lower than a year ago. It also said active sellers and gross merchandise sales per buyer both rose year over year, while the mobile app continued to gain momentum.

That matters on a Big Lots sales floor because the same mechanics show up in discount retail, just with different merchandise. If the shelves look picked over, the pricing is confusing, or the store feels hard to shop, customers hesitate. Etsy’s message to its sellers was straightforward: refresh inventory and provide “really great human service.” In a store, that translates to clean presentations, timely resets, clear price communication and associates who can answer questions fast enough to keep a shopper moving.

Goyal’s background helps explain why Etsy is leaning so hard into those basics. Before becoming CEO, she oversaw Product, Marketing, Member Support, Trust and Safety, and Strategy and Operations. She also led Depop from 2022 to 2025. Etsy still describes its mission as “Keep Commerce Human,” and its latest results suggest the company thinks discovery and service can do as much to drive growth as technology itself.

For Big Lots, the comparison is less about crafts than about survival. The chain filed for Chapter 11 bankruptcy on September 9, 2024, in the U.S. Bankruptcy Court for the District of Delaware, and the process brought store closures, asset sales and a going-concern transfer. Gordon Brothers said it completed the purchase of Big Lots and facilitated a going-concern sale that preserved the brand and kept hundreds of stores operating, while Variety Wholesalers moved to take over many locations.

That leaves store-level execution with real stakes. When customers are weighing whether a Big Lots trip is worth it, the difference often comes down to whether the assortment looks current, the floor is easy to navigate and an associate can help without turning the visit into a hassle. Etsy’s numbers suggest those habits still sell.