In a significant move aimed at capturing the youthful market, eBay has announced its agreement to acquire the secondhand fashion marketplace Depop from Etsy for approximately $1.2 billion in cash. This acquisition marks eBay’s strategic effort to appeal to a younger demographic, particularly Gen Z shoppers who are increasingly turning to used clothing for both unique options and cost-effective alternatives while prioritizing environmental sustainability by preventing older items from ending up in landfills.
Depop, a London-based platform established in 2011, is expected to maintain its branding, name, and cultural identity post-acquisition. According to eBay’s Chief Executive Officer, Jamie Ianonne, the integration into eBay will position Depop for enhanced long-term growth thanks to eBay’s operational capabilities, scale, and complementary offerings.
As of the end of 2025, Depop’s marketplace boasted around 7 million active buyers, with nearly 90% of these individuals under the age of 34. The platform also had more than 3 million active sellers, highlighting its popularity among younger consumers.
Etsy initially acquired Depop for $1.6 billion in 2021 as part of its vision to create a “House of Brands,” strategically targeting an array of online marketplaces to compete against larger players like Amazon. However, the company has since shifted its strategy, opting to divest from marketplaces outside its core platform. Etsy’s Chief Executive, Kruti Patel Goyal, emphasized that selling Depop allows Etsy to concentrate on opportunities that are more aligned with its primary business objectives, focusing on enhancing the Etsy marketplace for both buyers and sellers.
The financial terms of the transaction stipulate that eBay will pay for the acquisition in cash, while Etsy plans to utilize the proceeds for general corporate purposes. Both eBay and Etsy’s boards have unanimously approved the deal, which is anticipated to close in the second quarter.
Following the announcement, eBay’s shares experienced a rise of over 7%, while Etsy saw a surge of nearly 15% in after-hours trading, indicating a favorable market reaction to the news.
