eBay Acquires Depop in Resale Market Shakeup
eBay has acquired the resale platform Depop for $1.2 billion in a strategic move to capture the Gen Z market. The deal represents a significant $400 million loss for the seller, Etsy. The acquisition positions eBay to compete more directly with other major resale players like Vinted and ThredUp.
- Etsy originally acquired Depop in mid-2021 for approximately $1.625 billion as part of a "house of brands" strategy. The recent sale to eBay marks a strategic pivot for Etsy to refocus on its core marketplace for handmade and vintage goods. - The sale was partially motivated by financial performance, as Depop's lower adjusted EBITDA margins were a drag on Etsy's overall profitability. This divestiture follows Etsy's sale of the musical instrument marketplace Reverb as part of a broader retrenchment strategy. - Depop's primary value is its dedicated user base; nearly 90% of its 7 million active buyers are under the age of 34. The platform's social media-style interface is designed to appeal directly to this Gen Z demographic. - In 2025, Depop generated approximately $1 billion in gross merchandise sales, with its U.S. business growing nearly 60% year-over-year. - The acquisition is a key move in eBay's strategy to grow its "focus categories," with fashion already representing more than $10 billion in annual gross merchandise volume for the company. - According to eBay CEO Jamie Iannone, Depop will remain a standalone brand but will benefit from eBay's infrastructure, including its global shipping solutions, financial services, and Authenticity Guarantee program. - The global secondhand apparel market is projected to reach $367 billion by 2029. This deal
