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eBay buys second-hand fashion app Depop for $1.2bn
eBay has agreed to purchase the UK-founded resale platform Depop from Etsy for $1.2 billion in cash, marking a strategic move to attract younger consumers in the growing second-hand fashion market.
Deal aims to revitalize eBay's appeal to younger shoppers
The acquisition is part of eBay's effort to modernize its brand and tap into the booming resale economy, where platforms like Depop have gained traction among Gen Z users seeking sustainable and affordable fashion. eBay CEO Jamie Iannone stated the deal would strengthen the company's position in the "fastest-growing" category of used clothing.
Depop, which will retain its name and branding, has over seven million active buyers, nearly 90% of whom are under 34. The platform also hosts more than three million active sellers.
Etsy offloads Depop after five years amid shifting priorities
Etsy acquired Depop in 2021 for $1.6 billion as part of an expansion strategy to compete with e-commerce giants like Amazon. However, the company has since divested several acquisitions, including Brazil's Elo7 and the music gear marketplace Reverb, to refocus on its core handmade and niche goods business.
Etsy's share price surged over 15% in after-hours trading following the announcement, while eBay's stock rose nearly 6.5%. The deal is expected to close by mid-2026.
Depop's valuation declines amid rising competition
Despite being an early player in the fashion resale market, Depop's value has dipped as competitors like Vinted gained ground. Retail analyst Catherine Shuttleworth noted that Vinted's global expansion and improved technology attracted sellers seeking a more "frictionless" experience.
"Users want the easiest, most accessible platform, and Depop didn't match the universal appeal of eBay or Vinted," Shuttleworth said.
The second-hand fashion sector has grown rapidly as younger consumers prioritize sustainability and cost-effective alternatives to traditional retail.
Etsy's struggles in a competitive e-commerce landscape
Etsy thrived during the COVID-19 pandemic but has faced challenges in recent years, including declining demand and competition from low-cost platforms like Temu and Shein. The company's latest financial results showed an 8% year-over-year revenue increase to $11.1 billion in 2025.
Kruti Patel Goyal, Etsy's CEO, expressed confidence in Depop's future under eBay, calling it "well-positioned for its next phase of growth."
