Etsy sells secondhand clothing marketplace Depop to eBay for $1.2B

Etsy Sells Depop to eBay for $1.2 Billion in Major Shift for Secondhand Fashion

In a surprising twist that’s sending ripples through the fashion-tech world, Etsy has officially announced it’s selling Depop, the Gen Z-beloved secondhand clothing marketplace, to eBay for a cool $1.2 billion in cash. The deal marks a major pivot for Etsy, which acquired Depop nearly five years ago for $1.62 billion, back when the resale fashion trend was just beginning to explode.

Depop, launched in 2011, has since become a cultural powerhouse among younger shoppers, blending social media vibes with thrifting in a way that resonates deeply with millennials and Gen Z. As of the end of 2025, the platform boasted seven million active buyers—nearly 90% of whom were under 34—and more than three million active sellers. In the U.S. alone, Depop saw a staggering 60% year-over-year growth, generating approximately $1 billion in gross merchandise sales in 2025.

The sale comes at a pivotal moment. Etsy, which enjoyed a pandemic-fueled boom in e-commerce, has since faced slowing growth, reporting just 2.2% year-over-year revenue growth in 2024, down from 7.1% the year before. With stiff competition from fast-fashion giants like Shein and Temu, as well as e-commerce behemoth Amazon, Etsy appears to be refocusing its energy on its core marketplace.

“Etsy is 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 in a press release. “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.”

For eBay, the acquisition is a strategic power move. The company has long been a player in the secondhand and collectible space, and adding Depop’s youthful, trend-savvy audience to its roster could supercharge its position in the booming resale economy. “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.

This isn’t Etsy’s first rodeo when it comes to acquiring and divesting niche marketplaces. In recent years, the company has also sold off Brazilian e-commerce company Elo7 and musical instrument marketplace Reverb. The pattern suggests a renewed focus on Etsy’s core identity and a willingness to let go of ventures that, while promising, may not align with its long-term vision.

The deal is expected to close in the second quarter of this year, and industry insiders are already speculating about what this means for the future of online fashion resale. Will eBay’s massive infrastructure and global reach help Depop scale to new heights? Or will the platform lose some of its indie, community-driven charm under corporate ownership? Only time will tell.

One thing’s for sure: the resale fashion market isn’t slowing down anytime soon. With sustainability, affordability, and individuality driving consumer choices, platforms like Depop are more relevant than ever. And with eBay now at the helm, the next chapter for this Gen Z favorite is bound to be one worth watching.

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