eBay has agreed to buy Depop from Etsy in a $1.2 billion deal, a move that deepens the online marketplace’s push into secondhand fashion and the Gen Z resale economy. The companies said the transaction is expected to close in the second quarter of this year.
The acquisition is aimed at broadening eBay’s reach with younger shoppers and reinforcing its long-term growth strategy in “pre-loved” apparel and accessories, a category that has surged alongside climate-conscious and cost-aware buying habits.
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“Depop has built a trusted, social-forward marketplace with strong momentum in the pre-loved fashion category, and we are confident that as part of eBay, Depop will be even more well-positioned for long-term growth, benefiting from our scale, complementary offerings, and operational capabilities,” eBay chief executive Jamie Iannone said. “We’re excited to welcome the Depop team to eBay, and look forward to building on what makes them unique — their brand, culture and community — to deliver compelling benefits to buyers and sellers.”
Depop has expanded rapidly on the back of demand from Gen Z and millennial shoppers seeking sustainable ways to buy and sell clothing. At the end of last year, the app counted seven million active buyers, with almost 90% under the age of 34, according to the companies. Sales in the United States — a key growth market — rose by nearly 60% over the past year.
The sale marks a strategic shift for Etsy, which acquired Depop five years ago for $1.62 billion. Etsy said offloading Depop will allow it to concentrate resources on its namesake marketplace and the growth priorities most important to its community of artisans and small businesses.
“We are excited that this transaction allows us to focus exclusively on the compelling opportunity we see in front of us: to grow the Etsy marketplace in ways that matter most to our buyers and sellers,” Kruti Patel Goyal said.
Depop, founded on peer-to-peer commerce and a social, community-driven shopping experience, framed the deal as a chance to accelerate in the U.S. and beyond while aligning with a larger player that shares its sustainability ethos.
“We’re thrilled to begin this next chapter with eBay, whose experience in the C2C fashion space and shared belief in people, opportunity, and a more sustainable future positions us to meaningfully accelerate our marketplace in the U.S. and beyond,” Peter Semple said. “This transaction is a testament to the significant growth we have delivered as we have evolved our product experience and strengthened our brand’s place in the world.”
The tie-up pairs eBay’s vast global marketplace and logistics know-how with Depop’s youth-centric brand and social commerce DNA. For eBay, which has long roots in consumer-to-consumer selling, Depop adds a fast-growing, app-native platform with strong cultural cachet among younger buyers and sellers. For Depop, eBay’s scale could bring broader reach, operational support and more tools for its community.
The companies did not disclose further details beyond the expected second-quarter closing timeline. Both said they plan to maintain what makes Depop distinct while leveraging eBay’s infrastructure to speed growth in secondhand fashion — a segment that has become a rare bright spot in online retail.
By Abdiwahab Ahmed
Axadle Times international–Monitoring.
