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.
- 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.
