Etsy Sells Secondhand Clothing App Depop to eBay for $1.2 Billion
Etsy, a beloved online marketplace, announced on Wednesday that it is selling Depop, a popular secondhand clothing app amongst Gen Z and millennials, to eBay for a staggering $1.2 billion in cash. This strategic move will allow Etsy to hone its focus on its proprietary marketplace, as it continues to battle for relevancy in the competitive e-commerce landscape. Source
Etsy’s Journey with Depop
Etsy first acquired Depop nearly five years ago for $1.62 billion, during a time when secondhand clothing apps were witnessing a significant surge in popularity. Founded in 2011, Depop has seen substantial success, generating approximately $1 billion in gross merchandise sales, the total value of goods sold through its platform, in 2025. The U.S. market witnessed nearly 60% year-over-year growth, and as of December 31, 2025, the marketplace boasted seven million active buyers, with nearly 90% of them under the age of 34, and over three million active sellers.
eBay’s Vision for Depop
eBay CEO, Jamie Iannone, expressed his excitement about the acquisition in a recent press release. He stated, “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.”
Etsy’s Post-Pandemic Struggle
Etsy, like many other businesses, is grappling with the post-pandemic landscape. Despite the initial e-commerce boom, Etsy found itself competing with marketplaces like Temu and Shein, not to mention the omnipresent Amazon. The company’s year-over-year revenue saw a modest increase of 2.2% in 2024, a significant drop from the 7.1% growth reported in 2023. Etsy’s 2025 earnings are scheduled for release on Thursday.
Despite these challenges, Etsy CEO Kruti Patel Goyal remains optimistic about the company’s future. In the press release, she said, “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. 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.”
Etsy’s Pattern of Acquisitions and Divestments
The sale of Depop is the latest in a series of Etsy’s acquisitions and divestments of niche online marketplaces. In recent years, Etsy bought and later sold other niche online marketplaces, including Brazilian e-commerce company Elo7 and musical instrument marketplace Reverb.
The transaction between Etsy and eBay is expected to close in the second quarter of the current year, marking yet another significant change in the dynamic e-commerce landscape.
