eBay Inc. has agreed to acquire fashion resale marketplace Depop from Etsy Inc. in an all-cash transaction valued at approximately $1.2 billion. a deal highlighting the eBay to acquire Depop strategy as it seeks to expand its footprint in the fast-growing secondhand fashion market and deepen engagement with younger consumers.
Depop, a mobile-first social shopping platform popular among Gen Z and Millennial users, has built a strong community-driven resale ecosystem. The platform recorded nearly $1 billion in gross merchandise sales in 2025, with strong growth momentum in the United States. Depop currently serves millions of active buyers and sellers, with the majority of its user base under the age of 34.
The transaction has been unanimously approved by the boards of both companies and is expected to close in the second quarter of 2026, subject to regulatory approvals and customary closing conditions. Depop will continue operating under its existing brand and leadership structure following the acquisition.
Strategic Shift for Etsy, Growth Acceleration for eBay
For eBay, the acquisition represents a calculated investment in the rapidly expanding recommerce sector. Fashion remains one of eBay’s strongest categories, generating more than $10 billion in annual gross merchandise volume. By integrating Depop into its broader ecosystem, eBay aims to strengthen its position in peer-to-peer resale while tapping into Depop’s highly engaged, socially driven audience.
eBay’s leadership indicated that the company plans to leverage its global infrastructure, technology capabilities, and marketplace expertise to help scale Depop’s growth. The move is expected to complement eBay’s existing fashion business rather than replace or absorb it, allowing Depop to maintain its unique identity and community-centric appeal.
For Etsy, the sale signals a strategic realignment. The company eBay to Acquire Depop in 2021 for approximately $1.6 billion as part of a broader “house of brands” expansion strategy. However, shifting market conditions and investor priorities have prompted Etsy to refocus on its core handmade and unique goods marketplace. The divestiture will provide Etsy with additional capital to strengthen its primary platform and enhance shareholder value.
Market Reaction and Industry Implications
Investors responded positively to the announcement, viewing the transaction as a clear strategic move for both companies. Etsy’s shares saw an immediate uptick following the news, reflecting confidence in the company’s streamlined focus and capital strategy. eBay’s stock also experienced gains as markets reacted to the company’s renewed emphasis on fashion resale and youth-oriented commerce.
Industry analysts note that the secondhand fashion market continues to expand as sustainability concerns, economic pressures, and shifting consumer behaviors drive demand for resale platforms. Depop’s strong brand recognition among younger consumers positions eBay to compete more effectively against emerging social commerce platforms and established resale competitors.
While Depop will retain operational independence, observers are closely watching how integration into eBay’s broader marketplace infrastructure could influence seller fees, platform policies, and community engagement. Maintaining Depop’s distinct identity will be critical to preserving user trust and sustaining growth momentum.
If completed as planned, eBay to acquire Depop will reshape the competitive landscape of online fashion resale, reinforcing eBay’s long-term commitment to recommerce while allowing Etsy to sharpen its strategic focus on its foundational marketplace strengths.
