eBay Completes $1.2 Billion Cash Acquisition of Depop from etsy
In a significant transaction, eBay has acquired Depop, the trendy secondhand fashion app popular among Gen Z and millennials, from Etsy for $1.2 billion in cash. This sale allows Etsy to sharpen its focus on enhancing its primary marketplace platform.
the Journey of Depop: From Purchase to Sale
About five years ago, Etsy invested $1.62 billion to acquire Depop amid a rising wave of interest in resale fashion platforms. At that time, apps promoting lasting and pre-owned clothing were rapidly gaining popularity with younger consumers worldwide.
This deal continues a pattern where Etsy has bought specialized marketplaces only to later divest them; similar moves include selling the brazilian e-commerce site Elo7 and the musical instrument marketplace Reverb.
Depop’s Growth Metrics and User Demographics
Founded in 2011, Depop achieved nearly $1 billion in gross merchandise sales during 2025 alone, showcasing an remarkable 60% year-over-year growth within the U.S. market that year.
- The platform had seven million active buyers as of December 31,2025.
- Around 90% of these users are under age 34.
- The global seller base exceeds three million active participants.
A Social Marketplace Driving sustainable Fashion trends
Depop’s distinctive combination of social networking elements with a focus on pre-loved apparel has fostered a vibrant community and loyal user engagement. eBay’s leadership expressed optimism that integrating Depop will accelerate growth by leveraging operational efficiencies alongside complementary services within eBay’s ecosystem.
“Depop has built a trusted social-first marketplace with strong momentum in sustainable fashion,” stated eBay CEO Jamie Iannone. “We anticipate this partnership will open new avenues for expansion.”
Etsy Refines Strategy Amid Market Challenges
Etsy’s decision to sell comes as it faces difficulties sustaining rapid revenue growth following the pandemic-driven surge in online shopping activity. In 2024, Etsy’s annual revenue increase slowed dramatically to just over two percent compared with previous years’ stronger gains.
Etsy CEO Kruti Patel Goyal highlighted that this move enables their team to concentrate resources on evolving their core marketplace experience tailored specifically for buyers and sellers who prioritize handmade or vintage items rather than fast-fashion resale models like those offered by Depop.
Adapting within an Intensely Competitive E-Commerce Environment
- Etsy contends with emerging competitors such as Temu and Shein alongside established giants like Amazon-all competing fiercely through diverse product selections or aggressive pricing tactics.
- This divestiture reflects wider industry trends where companies streamline portfolios by focusing on core strengths amid shifting consumer preferences balancing sustainability with convenience.
Future outlook: Deal Closure & Market Implications
The acquisition is expected to close during Q2 this year, positioning eBay advantageously within the expanding secondhand apparel sector-projected globally to surpass $80 billion by 2030 according to recent market forecasts.
By combining Depop’s appeal among younger shoppers with its existing auction-based model, eBay aims to capture greater market share among environmentally conscious consumers seeking unique wardrobe options beyond conventional retail.
This strategic move highlights how established platforms evolve through targeted acquisitions reflecting changing digital commerce behaviors worldwide.
