eBay Acquires Depop for $1.2B to Target Gen Z
eBay has acquired secondhand fashion app Depop for $1.2 billion, aiming to attract its core Gen Z user base. The app's founder, an engineer who built the initial product in his spare time, grew the platform by focusing on community engagement and product virality before seeking outside capital.
- At the time of the acquisition, nearly 90% of Depop's 7 million active buyers were under the age of 34, a demographic eBay was actively trying to attract. - The deal was a strategic move for eBay to tap into the rapidly growing secondhand clothing market, which was projected to grow significantly. For context, the global secondhand fashion market was valued at $190 billion in 2024 and estimated to reach $521.5 billion by 2034. - Depop's platform was designed to feel more like a social network than a traditional e-commerce site, fostering a strong sense of community through features like following sellers and liking posts. This social-first approach was a key driver of its viral growth among younger users. - Before founding Depop, Simon Beckerman co-founded PIG magazine and the sunglasses brand RETROSUPERFUTURE. The original idea for Depop was a social network where readers of PIG could buy items featured in the magazine. - While founded in Italy and headquartered in London, Depop established a significant US presence with offices in New York City and Los Angeles, and held live events in NYC to engage its community. The U.S. had become its largest market, experiencing nearly 60% year-over-year growth in gross merchandise sales in 2025. - The acquisition was intended to benefit Depop by giving it access to eBay's global scale, financial services, and shipping solutions. For eBay, fashion already represented over $10 billion in annual gross merchandise volume. - This was not Depop's first acquisition; Etsy had previously purchased the platform in 2021 for $1.6 billion, meaning Etsy sold it to eBay at a $400 million loss. - Top sellers on Depop have built significant businesses on the platform, with some surpassing £1 million in sales and hiring their own staff. The platform takes a 10% commission on sales.
