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eBay has announced plans to acquire secondhand fashion marketplace Depop from Etsy for approximately $1.2 billion in cash, marking a strategic move to capture a larger share of the Gen Z market. The deal, announced Wednesday, comes amid growing popularity of pre-owned clothing among younger consumers.
The acquisition represents a significant shift in the online resale landscape, where secondhand fashion has evolved from niche market to mainstream shopping behavior. Consumers increasingly seek unique, vintage items that not only cost less than new clothing but also align with sustainability values by keeping textiles out of landfills.
eBay CEO Jamie Ianonne highlighted the demographic opportunity in a statement, saying, “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.”
The appeal of Depop lies largely in its young user base. As of December 31, 2025, the marketplace boasted 7 million active buyers, with nearly 90% under the age of 34, alongside more than 3 million active sellers. This youthful demographic has been challenging for traditional e-commerce platforms to capture.
This transaction comes five years after Etsy initially purchased Depop for $1.6 billion. Founded in 2011, Depop quickly grew into one of the most popular platforms for vintage and upcycled fashion among younger millennials and Gen Z shoppers. The $400 million difference between Etsy’s purchase price and the current sale value raises questions about Depop’s performance under Etsy’s ownership.
San Jose-based eBay intends to finance the acquisition entirely through cash. Meanwhile, Brooklyn-headquartered Etsy plans to use the proceeds for general corporate purposes, continued share repurchases, and investment in its core marketplace business, according to the joint release.
The transaction has received unanimous approval from the boards of directors at both companies and is expected to close in the second quarter of this year, pending regulatory approval and other customary closing conditions.
In a move likely designed to preserve the platform’s distinctive appeal, Depop is expected to retain its name, brand, platform, and culture following the acquisition. This approach aligns with strategies employed by other tech companies that have preserved the identity of acquired businesses to maintain user loyalty.
Investor reaction to the announcement was strongly positive for both companies. eBay’s shares rose more than 7%, while Etsy’s stock soared nearly 15% in after-hours trading when the news was announced, suggesting market approval of the deal.
The acquisition reflects broader industry trends in e-commerce, where established platforms seek to diversify their offerings and appeal to younger demographics. The secondhand clothing market has experienced substantial growth in recent years, with research firm ThredUp projecting the global resale market will reach $77 billion by 2025, growing 11 times faster than the broader retail clothing sector.
For eBay, which has faced increasing competition from specialized marketplaces and e-commerce giants like Amazon, the addition of Depop represents an opportunity to strengthen its position in the fashion resale market while simultaneously addressing a demographic gap in its user base.
The deal also signals a shift in Etsy’s strategy as it refocuses on its core marketplace business, potentially streamlining operations after several years of acquisition-driven expansion.
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5 Comments
This is an interesting move by eBay to tap into the growing secondhand fashion market, especially among younger consumers. Acquiring Depop gives them access to a sizable Gen Z user base that values sustainability and unique, vintage finds.
I wonder how eBay plans to integrate Depop’s platform and community while preserving the app’s distinct identity and appeal. Maintaining that youthful, trendy vibe will be key.
The $1.2 billion price tag highlights how valuable the secondhand fashion segment has become. As sustainability concerns grow, more consumers are opting for pre-owned clothing over fast fashion.
It will be interesting to see if eBay can leverage its scale and resources to drive further growth for Depop, or if the acquisition could risk diluting Depop’s unique appeal.
This acquisition shows how traditional e-commerce players are adapting to shifting consumer preferences. Tapping into the Depop community gives eBay a chance to stay relevant with younger, more eco-conscious shoppers.