eBay Buys Gen Z Fashion App Depop From Etsy for $1.2B

Etsy announced Wednesday it is selling Depop, its popular Gen Z-focused secondhand fashion marketplace, to eBay for $1.2 billion in cash to refocus on its core platform.

Inside the $1.2 Billion E-Commerce Deal

The cash transaction, which Etsy announced on Wednesday, marks a significant shift in corporate strategy. The sale comes nearly five years after Etsy originally acquired Depop for $1.62 billion, a period when resale fashion platforms were gaining in popularity during a broader digital shopping surge.

Depop’s Massive Gen Z Appeal and Market Reach

Founded in 2011, Depop has cemented itself as a cultural powerhouse for younger demographics. The platform generated approximately $1 billion in gross merchandise sales—representing the total value of goods sold through its ecosystem—in 2025. In the United States, the platform experienced explosive growth, surging nearly 60% year-over-year.

As of December 31, 2025, Depop boasted seven million active buyers, with nearly 90% of that demographic under the age of 34. Additionally, the platform supported more than three million active sellers.

“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 eBay CEO Jamie Iannone in the official press release.

Why Etsy Is Pivoting Away from Niche Platforms

This strategic divestment comes as Etsy navigates intense post-pandemic headwinds. The e-commerce giant has faced mounting pressure from low-cost giants like Temu and Shein, alongside retail behemoth Amazon.

Etsy’s financial reports highlight these challenges. The company’s year-over-year revenue growth slowed to 2.2% in 2024, down from the 7.1% growth recorded in 2023. Etsy is scheduled to release its full-year 2025 earnings on Thursday.

“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 Etsy CEO Kruti Patel Goyal. “We are proud of what the Depop team has built – a truly differentiated brand and product, grounded in clear purpose and strong community – becoming one of the fastest-growing fashion resale marketplaces in the U.S. I am confident that Depop is well-positioned for its next phase of growth as part of eBay.”

A Pattern of Buying and Selling Niche Brands

This transaction fits into a broader historical pattern of Etsy acquiring and subsequently selling off specialized e-commerce platforms. Over the past several years, Etsy has bought and later divested other niche marketplaces, including the Brazilian handmade platform Elo7 and the musical instrument marketplace Reverb.

The transaction between Etsy and eBay is expected to close in the second quarter of this year, subject to customary closing conditions and regulatory approvals.