eBay has agreed to purchase the second-hand fashion marketplace Depop from Etsy for $1.2 billion (€1.0 billion) in cash, marking a major move into the growing market for pre-owned clothing. The deal was announced on Wednesday, highlighting eBay’s push to attract younger buyers and expand its footprint in sustainable fashion.
Depop, founded in 2011, has grown into a popular platform for buying and selling second-hand clothing. As of 31 December 2025, the marketplace had 7 million active buyers, nearly 90 percent of whom are under 34, and more than 3 million active sellers, according to the companies. The platform has become a hub for unique, affordable fashion and a way for consumers to reduce clothing waste.
eBay chief executive Jamie Iannone said the acquisition would help the company engage with a younger demographic while positioning Depop for long-term growth. “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,” he said.
The acquisition comes five years after Etsy purchased Depop for $1.6 billion (€1.3 billion). Etsy, based in Brooklyn, New York, said it plans to use the proceeds from the sale for general corporate purposes, ongoing share repurchases, and investment in its core marketplace. eBay, headquartered in San Jose, California, will pay for the transaction in cash.
Both companies’ boards have unanimously approved the deal, which is expected to close in the second quarter of 2026. Depop is expected to retain its brand, platform, and culture, allowing it to continue operating independently under the eBay umbrella.
Investors responded positively to the news. eBay shares rose more than 7 percent, while Etsy shares jumped nearly 15 percent in after-hours trading. Analysts noted that the deal strengthens eBay’s position in the fast-growing second-hand fashion sector and helps the company tap into the preferences of younger consumers who prioritize sustainability and unique items over mainstream retail.
The transaction reflects a broader trend in the fashion industry, as resale and second-hand markets grow in popularity across Europe and the United States. Consumers increasingly seek affordable alternatives to new clothing, while also aiming to reduce the environmental impact of fast fashion. By acquiring Depop, eBay positions itself to capitalise on these shifts while expanding its appeal to a demographic that has historically been more active on mobile-first platforms.
With its established user base, strong brand identity, and global reach, Depop is expected to complement eBay’s existing operations and reinforce the company’s strategy of combining marketplace scale with specialised platforms that meet evolving consumer preferences.
