eBay has announced plans to acquire fashion resale marketplace Depop from Etsy in a cash deal worth about $1.2 billion, expanding its reach in secondhand fashion and strengthening its position with younger buyers.
Depop, a mobile-first marketplace known for peer-to-peer selling and a strong Gen Z and Millennial audience, recorded roughly $1 billion in annual gross merchandise sales in 2025, including close to 60 percent year-over-year growth in the US. It reportedly had 7 million active buyers and more than 3 million active sellers at the end of the year.
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eBay in fashion
“Depop has built a trusted, social-forward marketplace with strong momentum in the pre-loved fashion category, and we are confident that as part of eBay, Depop will be even more well-positioned for long-term growth, benefiting from our scale, complementary offerings, and operational capabilities,” said Jamie Ianonne, CEO of eBay. “This acquisition presents an opportunity to advance one of our newest and fastest-growing Focus Categories with a marketplace that complements our existing presence, and enables us to reach a younger demographic across the expanding recommerce landscape.”
Fashion remains one of eBay’s larger consumer-to-consumer categories, generating more than $10 billion in annual gross merchandise volume, with the category growing 10 percent year over year in the US during 2025.
Depop will continue operating under its existing name after the acquisition closes while gaining access to eBay’s shipping, financial, and authentication services.
“We are excited that this transaction allows us to focus exclusively on the compelling opportunity we see in front of us: to grow the Etsy marketplace in ways that matter most to our buyers and sellers,” said Kruti Patel Goyal, Chief Executive Officer of Etsy. “We believe this transaction is a great outcome for Etsy’s shareholders, and a positive next step for all involved. We are proud of what the Depop team has built — a truly differentiated brand and product, grounded in clear purpose and strong community… I am confident that Depop is well-positioned for its next phase of growth as part of eBay.”
eBay plans to fund the purchase using cash on hand. Etsy said proceeds from the sale will go toward general corporate purposes, continued share repurchases, and investment in its core marketplace operations.
The deal has been approved by both companies’ boards and is expected to close in the second quarter of 2026, subject to regulatory approvals and standard closing conditions.
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