eBay to Acquire Fashion Marketplace Depop from Etsy
What happened
eBay announced it will acquire Depop, a fashion marketplace with a large Gen Z and Millennial user base, from Etsy. The move is intended to enhance eBay's consumer-to-consumer offerings. Following the sale, Etsy plans to focus exclusively on the growth of its core marketplace.
Why it matters
- Etsy originally acquired Depop in July 2021 for approximately $1.625 billion, signaling a significant financial loss with the sale to eBay for around $1.2 billion. - The initial 2021 purchase was part of Etsy's "house of brands" strategy to reach younger consumers, as nearly 90% of Depop's active users were under the age of 26. - Etsy's sale of Depop marks a strategic reversal, allowing the company to focus exclusively on the growth of its core marketplace and utilize the proceeds for share repurchases and other corporate purposes. - For eBay, the acquisition accelerates its push into the C2C secondhand fashion market, a category that already represents over $10 billion in annual gross merchandise volume for the company. - As of the end of 2025, Depop's marketplace had 7 million active buyers and more than 3 million active sellers, generating approximately $1 billion in gross merchandise sales. - eBay plans to integrate its existing services, such as shipping solutions and its Authenticity Guarantee program, to support Depop's growth while also creating cross-listing opportunities to boost inventory visibility. - The deal, approved by both companies' boards, is expected to close in the second quarter of 2026, with Depop set to continue operating as a standalone brand.
Key numbers
- - Etsy originally acquired Depop in July 2021 for approximately $1.625 billion, signaling a significant financial loss with the sale to eBay for around $1.2 billion.
- The initial 2021 purchase was part of Etsy's "house of brands" strategy to reach younger consumers, as nearly 90% of Depop's active users were under the age of 26.
- For eBay, the acquisition accelerates its push into the C2C secondhand fashion market, a category that already represents over $10 billion in annual gross merchandise volume for the company.
- As of the end of 2025, Depop's marketplace had 7 million active buyers and more than 3 million active sellers, generating approximately $1 billion in gross merchandise sales.
What happens next
- eBay plans to integrate its existing services, such as shipping solutions and its Authenticity Guarantee program, to support Depop's growth while also creating cross-listing opportunities to boost inventory visibility.
- The deal, approved by both companies' boards, is expected to close in the second quarter of 2026, with Depop set to continue operating as a standalone brand.
- eBay announced it will acquire Depop, a fashion marketplace with a large Gen Z and Millennial user base, from Etsy.
Quick answers
What happened in eBay to Acquire Fashion Marketplace Depop from Etsy?
eBay announced it will acquire Depop, a fashion marketplace with a large Gen Z and Millennial user base, from Etsy. The move is intended to enhance eBay's consumer-to-consumer offerings. Following the sale, Etsy plans to focus exclusively on the growth of its core marketplace.
Why does eBay to Acquire Fashion Marketplace Depop from Etsy matter?
Etsy originally acquired Depop in July 2021 for approximately $1.625 billion, signaling a significant financial loss with the sale to eBay for around $1.2 billion. The initial 2021 purchase was part of Etsy's "house of brands" strategy to reach younger consumers, as nearly 90% of Depop's active users were under the age of 26. Etsy's sale of Depop marks a strategic reversal, allowing the company to focus exclusively on the growth of its core marketplace and utilize the proceeds for share repurchases and other corporate purposes. For eBay, the acquisition accelerates its push into the C2C secondhand fashion market, a category that already represents over $10 billion in annual gross merchandise volume for the company. As of the end of 2025, Depop's marketplace had 7 million active buyers and more than 3 million active sellers, generating approximately $1 billion in gross merchandise sales. eBay plans to integrate its existing services, such as shipping solutions and its Authenticity Guarantee program, to support Depop's growth while also creating cross-listing opportunities to boost inventory visibility. The deal, approved by both companies' boards, is expected to close in the second quarter of 2026, with Depop set to continue operating as a standalone brand.
