Etsy is handing off Depop, the fast-growing secondhand clothing marketplace loved by Gen Z and millennials, in a major deal that reshapes both companies’ strategies. The company announced it will sell Depop to eBay for $1.2 billion in cash, a move Etsy says will help it concentrate more fully on strengthening and expanding the core Etsy marketplace.
The sale arrives nearly five years after Etsy originally bought Depop for $1.62 billion, during a period when resale and “pre-loved” fashion apps were exploding in popularity. Since then, Depop has continued to build a highly social shopping experience centered on community, style discovery, and peer-to-peer selling—especially among younger shoppers.
Depop’s growth metrics show why it remains a valuable asset. Founded in 2011, Depop generated around $1 billion in gross merchandise sales in 2025, reflecting the total value of items sold on the platform. In the United States, the company posted close to 60% year-over-year growth, highlighting strong momentum in one of its most important markets. By December 31, 2025, Depop reported seven million active buyers, with nearly 90% under the age of 34, along with more than three million active sellers. Those figures underscore Depop’s staying power as a leading fashion resale app and a rare platform with deep resonance among younger consumers.
For eBay, the acquisition is positioned as a way to expand its reach in the booming secondhand apparel space while tapping into Depop’s brand identity and social-first product experience. eBay CEO Jamie Iannone said Depop has built a trusted marketplace with strong momentum in pre-owned fashion, and that joining eBay should support Depop’s long-term growth through greater scale, complementary offerings, and operational capabilities.
For Etsy, the decision reflects a renewed focus at a time when the broader e-commerce landscape has become more competitive. After the pandemic-driven surge in online shopping, Etsy has faced slowing growth and heavier pressure from bargain-focused marketplaces and retail giants. Etsy reported 2.2% year-over-year revenue growth in 2024, down from 7.1% growth in 2023, and the company is set to report its 2025 earnings soon. Etsy CEO Kruti Patel Goyal said the transaction allows Etsy to focus exclusively on growing the Etsy marketplace in ways that matter most to its buyers and sellers, while expressing confidence that Depop is ready for its next phase under eBay.
The Depop sale also fits a broader pattern in Etsy’s recent history: acquiring specialized marketplaces and later divesting them. In recent years, Etsy has bought and then sold other niche platforms, including Brazilian e-commerce business Elo7 and the musical instrument marketplace Reverb, signaling a shift toward a more streamlined approach centered on Etsy’s primary brand and platform.
The transaction is expected to close in the second quarter of this year, marking the beginning of a new chapter for Depop under eBay’s umbrella—and a clearer, more focused path for Etsy as it navigates the next stage of online retail competition.
