eBay acquires Depop

eBay has signed an agreement to acquire second-hand fashion platform Depop from Etsy for $1.2 billion. This move underscores eBay's strategy to bolster its footprint in the expanding youth-centric recommerce domain. The transaction, pending customary approvals, is anticipated to conclude in the second quarter.

Depop, a London-based company established in 2011, will continue to operate its platform and maintain its brand identity post-acquisition. eBay has committed to keeping the app independent while utilizing its extensive scale and infrastructure to aid Depop's growth. The purchase of Depop comes five years after Etsy acquired it for $1.62 billion.

With Depop's resale platform, eBay aims to reach a younger audience, an area where Depop has excelled. The app's user base predominantly comprises Gen Z and Millennials, with 90% of its seven million active buyers under the age of 34. The U.S. market has been particularly robust, experiencing a nearly 60% annual sales increase. Depop's emphasis on sustainable fashion aligns with growing consumer trends among these demographics.

eBay's acquisition is strategically significant as fashion is a major category for the e-commerce giant, generating over $10 billion in annual gross merchandise volume globally. In the U.S., fashion GMV increased by 10% in 2025, highlighting the category's potential for eBay. CEO Jamie Iannone articulated that integrating Depop will augment one of eBay’s fastest-growing sectors, enhancing its consumer-to-consumer model and extending its reach into younger segments.

For Etsy, the divestiture signals a refocusing on its core marketplace. CEO Kruti Patel Goyal highlighted that selling Depop allows Etsy to concentrate on areas more aligned with its primary business model. While the sale at a reduced price compared to its acquisition suggests a financial loss, Etsy considers it a strategic decision conducive to streamlined operations.

Looking ahead, eBay's acquisition is poised to enhance its competitive position in the resale market by capturing the interest of the younger demographic critical to this sector's growth. The company will seek to capitalize on its global reach and technological capabilities to foster Depop's development, with a particular emphasis on expanding its footprint within the United States.