Etsy Sells Depop To eBay For $1.2bn
Etsy has agreed to sell second-hand fashion app Depop to eBay for $1.2bn (£890m), five years after acquiring the platform for $1.6bn.
The all-cash deal, which is expected to close by mid-year, will see Depop continue to operate under its existing name and brand. Founded in the UK, Depop has grown rapidly among younger shoppers, particularly Gen Z, by tapping into demand for affordable and sustainable fashion.
eBay said the acquisition would help it attract a younger audience and strengthen its position in the fast-growing re-commerce market, where consumers buy and sell pre-owned clothing and footwear.
“This will further boost our momentum in used clothing, which is one of our fastest-growing categories,” said eBay chief executive Jamie Iannone.
The announcement coincided with eBay’s release of its 2025 financial results, which showed revenue rose 8% year-on-year to $11.1bn. Shares in Etsy jumped more than 15% in after-hours trading, while eBay’s stock climbed nearly 6.5%.
According to Etsy, almost 90% of Depop’s seven million active buyers are under the age of 34, and the platform also counts more than three million active sellers. Etsy chief executive Kruti Patel Goyal described Depop as one of the fastest-growing fashion resale marketplaces in the United States and said it was well positioned for its next phase of growth under eBay’s ownership.
Etsy bought Depop in 2021 as part of a broader expansion strategy aimed at competing with major online retailers such as Amazon. However, the company has since scaled back that approach. In 2023, Etsy sold Brazilian marketplace Elo7 at a loss, and last year announced plans to divest Reverb, a music equipment resale site.
Once a major beneficiary of the surge in online shopping during the Covid-19 pandemic, Etsy has faced slowing demand and tougher competition in recent years. Low-cost rivals including Temu and Shein have gained ground by offering cheaper products and faster delivery, adding pressure to Etsy’s core crafts-focused business.
