Etsy Sells Depop to eBay in $1.2B Deal as Strategic Priorities Shift
Etsy has agreed to sell Depop, its popular secondhand fashion marketplace, to eBay for $1.2 billion in cash, the company confirmed on Wednesday. The transaction marks a strategic move by Etsy to sharpen its focus on its core marketplace operations.
The sale comes nearly five years after Etsy acquired Depop for $1.62 billion, during a period when resale and secondhand fashion platforms were rapidly gaining traction among younger consumers.
Depop’s Growth Story and Gen Z Appeal
Founded in 2011, Depop has become a major player in the global resale economy, particularly among Gen Z and millennial users. In 2025, the platform generated approximately $1 billion in gross merchandise sales (GMS), representing the total value of goods sold through its marketplace.
Growth has been especially strong in the United States, where Depop recorded nearly 60% year-over-year growth. As of December 31, 2025, the platform counted seven million active buyers, with nearly 90% under the age of 34, alongside more than three million active sellers.
eBay Strengthens Its Position in Resale Fashion
For eBay, the acquisition reinforces its long-term commitment to the recommerce and secondhand fashion space.
“Depop has built a trusted, social-forward marketplace with strong momentum in the pre-loved fashion category, and 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,” said eBay CEO Jamie Iannone in the press release.
The deal allows eBay to expand its reach among younger consumers while leveraging Depop’s community-driven model and brand identity.
Etsy Refocuses Amid Slower Growth
The divestment comes at a challenging time for Etsy, as the company works to reignite growth following the pandemic-era e-commerce surge. Etsy has faced increased competition from low-cost platforms such as Temu and Shein, as well as continued pressure from Amazon.
Etsy reported 2.2% year-over-year revenue growth in 2024, a notable slowdown from the 7.1% growth recorded in 2023. The company is scheduled to release its 2025 earnings on Thursday, which investors will closely watch for signs of recovery.
“We are excited that this transaction allows us to focus exclusively on the compelling opportunity we see in front of us: to grow the Etsy marketplace in ways that matter most to our buyers and sellers,” said Etsy CEO Kruti Patel Goyal.
“We are proud of what the Depop team has built – a truly differentiated brand and product, grounded in clear purpose and strong community – becoming one of the fastest-growing fashion resale marketplaces in the U.S. I am confident that Depop is well-positioned for its next phase of growth as part of eBay.”
A Pattern of Acquisition and Divestment
The sale of Depop reflects a broader pattern in Etsy’s corporate strategy. In recent years, the company has acquired and later divested several niche marketplaces, including Brazilian e-commerce platform Elo7 and musical instrument marketplace Reverb.
These moves suggest a recalibration of Etsy’s long-term priorities as it concentrates resources on strengthening its flagship platform.
Deal Timeline
The transaction is expected to close in the second quarter of this year, subject to customary regulatory approvals and closing conditions.
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