eBay has agreed to acquire second-hand fashion platform Depop from Etsy for $1.2 billion (£890 million), marking a significant shift in the online resale market. The transaction is expected to close in the second quarter of this year, subject to customary approvals.
The move signals eBay’s intention to strengthen its position in the growing recommerce sector and expand its appeal among younger consumers.
Deal
Depop, founded in London in 2011, will retain its brand, name and platform following the acquisition. eBay has indicated that the app will continue to operate independently while benefiting from the company’s scale and infrastructure.
The agreement comes five years after Etsy purchased Depop for $1.62 billion (£1.2 billion). The resale app has since established itself as a leading platform for second-hand fashion, particularly in the United States.
Transaction Overview
| Detail | Information |
|---|---|
| Buyer | eBay |
| Seller | Etsy |
| Deal Value | $1.2 billion |
| Expected Close | Q2 2026 |
| Depop Founded | 2011 |
Growth
Depop has experienced strong growth in recent years, driven largely by demand for sustainable fashion among Gen Z and Millennial shoppers.
At the end of last year:
- Depop had 7 million active buyers
- Nearly 90 percent were under 34
- US sales rose nearly 60 percent year-on-year
The platform’s social-forward design and focus on pre-loved fashion have helped it gain traction in the competitive resale market.
Strategy
For eBay, fashion represents a major and expanding category. The company reported that fashion generates more than $10 billion in annual gross merchandise volume globally. In the United States, fashion GMV grew 10 percent year-on-year in 2025.
Jamie Iannone, chief executive of eBay, said the acquisition would support one of the company’s fastest-growing focus categories. He noted that Depop’s marketplace complements eBay’s existing consumer-to-consumer model and offers access to a younger demographic.
eBay expects to leverage its operational capabilities and global reach to support Depop’s next phase of growth, particularly in the US market.
Etsy
Etsy’s decision to sell Depop reflects a strategic refocus on its core marketplace. Chief executive Kruti Patel Goyal said the transaction allows Etsy to concentrate on growth opportunities directly linked to its primary platform.
Although Etsy is selling the business at a lower price than its 2021 purchase, the company described the deal as a positive outcome for shareholders and stakeholders.
The divestment narrows Etsy’s portfolio and simplifies its operating structure.
Market Impact
The recommerce sector continues to expand as sustainability considerations and price sensitivity shape consumer behaviour. Younger shoppers in particular have embraced resale platforms, viewing second-hand fashion as both environmentally responsible and financially accessible.
By acquiring Depop, eBay strengthens its competitive position against other resale-focused platforms while reinforcing its presence in peer-to-peer online marketplaces.
Outlook
Depop’s leadership expressed confidence that integration with eBay will accelerate growth and enhance the platform’s reach. The brand is expected to maintain its identity while benefiting from broader operational support.
The acquisition underscores the increasing importance of resale commerce within the wider e-commerce landscape. As consumer demand for second-hand goods rises, established marketplaces are seeking to consolidate and expand their presence in the sector.
FAQs
How much is eBay paying for Depop?
$1.2 billion.
Will Depop keep its brand?
Yes, it will retain its name and platform.
How many active buyers does Depop have?
Around 7 million.
Why is eBay buying Depop?
To expand its reach among younger shoppers.
