EBay buys Gen Z favourite Depop as Etsy exits, five years after $1.6bn purchase

Etsy has agreed to sell second-hand fashion app Depop to eBay for $1.2bn (£890m), marking a major shift in the rapidly expanding resale market.

The all-cash deal comes just five years after Etsy acquired the UK-founded platform for $1.6bn. Now, ownership will pass to eBay, which hopes the move will strengthen its appeal among younger shoppers and accelerate growth in pre-loved fashion.

Depop has surged in popularity with Gen Z consumers, who increasingly favour sustainable and lower-cost alternatives to traditional retailers. Apps dedicated to buying and selling used clothing and footwear have gained significant traction in recent years as environmental awareness and affordability concerns shape shopping habits.

eBay said the acquisition will help it “reach a younger demographic across the expanding re-commerce landscape”. The company, founded more than 30 years ago, has been working to modernise its image and capture growth in second-hand categories.

Jamie Iannone, eBay’s chief executive officer, described used clothing as one of the company’s “fastest-growing” segments. Bringing Depop into its portfolio is expected to give that division further momentum.

Under the terms of the agreement, Depop will retain its name and branding once the transaction completes. The deal is expected to close by the middle of this year.

Depop currently counts around seven million active buyers, with Etsy noting that nearly 90% are under the age of 34. The platform also supports more than three million active sellers, many of whom operate small independent businesses through the app.

Kruti Patel Goyal, chief executive of Etsy, said Depop has become “one of the fastest-growing fashion resale marketplaces in the US”. She expressed confidence in the platform’s future under new ownership. “I am confident that Depop is well-positioned for its next phase of growth as part of eBay,” she said.

The sale represents a strategic recalibration for Etsy, which acquired Depop in 2021 as part of a broader expansion into resale and second-hand markets. Offloading the business at a lower price than its original purchase price signals a shift in priorities.

Financial markets reacted positively to the announcement. Etsy’s share price jumped more than 15% in after-hours trading, while eBay’s shares rose by nearly 6.5%.

The deal coincided with eBay’s release of its 2025 financial results. The company reported revenues of $11.1bn, an 8% increase compared with the previous year. The acquisition of Depop adds further weight to its ambitions within the growing re-commerce sector.

Resale platforms have flourished as younger consumers prioritize sustainability, circular fashion and affordability. By integrating Depop’s strong Gen Z user base, eBay aims to reinforce its position in a competitive digital marketplace.

For Depop’s community of buyers and sellers, day-to-day operations are expected to continue under the same brand identity, even as the ownership structure changes behind the scenes.

As the resale market continues to evolve, the $1.2bn deal underscores the commercial value of platforms that connect younger shoppers with second-hand fashion and highlights the intensifying competition among major e-commerce players for a slice of that growth.