Title: Etsy Offloads Depop: A $1.2 Billion Shift to eBay
Etsy has made headlines by announcing the sale of Depop, a trendy secondhand clothing platform that has captured the hearts of Gen Z and millennials, to eBay for an impressive $1.2 billion in cash. This strategic decision, confirmed by the company on Wednesday, allows Etsy to zero in on its own unique marketplace.
This transaction comes nearly five years after Etsy originally acquired Depop for $1.62 billion during a surge in popularity for secondhand shopping apps. The vintage and sustainable fashion craze had taken off, positioning Depop as a leader in the resale market.
Founded in 2011, Depop saw remarkable growth in 2025, boasting around $1 billion in gross merchandise sales and a staggering 60% year-over-year increase in the U.S. market. With a vibrant community of seven million active buyers, 90% of whom are under 34, and over three million active sellers, Depop has redefined how younger generations approach fashion consumption.
“Depop has created a beloved, socially-driven marketplace with substantial momentum in the pre-loved fashion space,” said eBay CEO Jamie Iannone in a press release. “We are excited to welcome Depop to eBay, where it will leverage our resources and scale for even greater success.”
This move comes at a time when Etsy is seeking to revitalize its business post-pandemic. While the company reported a modest 2.2% revenue growth in 2024—down from 7.1% the previous year—it faces fierce rivals like Temu, Shein, and the omnipresent Amazon.
Etsy CEO Kruti Patel Goyal expressed enthusiasm about the sale, stating, “This transaction enables us to concentrate on the remarkable opportunities within the Etsy marketplace. We take pride in what the Depop team has accomplished—a unique brand anchored in community and purpose—and I believe Depop is set for a prosperous future under eBay’s umbrella.”
Etsy has a history of acquiring and then divesting niche e-commerce platforms. The recent sale of Depop joins a trend of Etsy purchasing and subsequently selling other specialized markets, such as Brazilian platform Elo7 and the musical marketplace Reverb.
The sale is anticipated to finalize in the second quarter of this year, marking a new chapter for both Etsy and Depop. As they embark on their respective journeys, the fashion resale landscape remains dynamic and ever-evolving.