Etsy sells secondhand clothes market Depop to eBay for $1.2B
Etsy is selling Depop, a secondhand clothes app in style with Gen Z and millennials, to eBay for $1.2 billion in cash, the corporation announced on Wednesday. Etsy says the deal will enable it to focus on its own market.
The deal comes almost 5 years after Etsy acquired Depop for $1.62 billion, at a time when secondhand clothes apps have been gaining in recognition.
Founded in 2011, Depop generated roughly $1 billion in gross merchandise sales—the entire worth of products bought by way of its platform—in 2025. Within the U.S., the corporation noticed almost 60% year-over-year progress. As of December 31, 2025, {the marketplace} had seven million lively patrons, almost 90% of whom have been beneath 34, and more than three million lively sellers.
“Depop has constructed a trusted, social-forward market with robust momentum within the pre-loved style class, and we’re assured that as a part of eBay, Depop might be much more well-positioned for long-term progress, benefiting from our scale, complementary choices, and operational capabilities,” mentioned eBay CEO Jamie Iannone within the press launch.
The transfer comes as Etsy has struggled to develop its enterprise after the pandemic-era e-commerce increase, competing with marketplaces like Temu and Shein, in addition to Amazon.
The corporation’s year-over-year income grew 2.2% in 2024, down from 7.1% progress reported in 2023. Etsy is scheduled to launch its 2025 earnings on Thursday.
“We’re excited that this transaction permits us to focus solely on the compelling alternative we see in front of us: to develop the Etsy market in ways that matter most to our patrons and sellers,” mentioned Etsy CEO Kruti Patel Goyal within the press launch. “We’re pleased with what the Depop crew has constructed—a really differentiated model and product, grounded in clear function and powerful neighborhood—changing into one of the fastest-growing style resale marketplaces within the U.S. I’m assured that Depop is well-positioned for its subsequent part of progress as a part of eBay.”
The sale is the newest in a sample of Etsy buying after which divesting area of interest online marketplaces. Etsy’s sale of Depop comes as the corporation has bought, after which it bought different areas of interest in online marketplaces lately, including Brazilian e-commerce firm Elo7 and musical instrument market Reverb.
The deal is predicted to shut within the second quarter of this year.
