Etsy announced Wednesday that it is selling Depop, the second-hand clothing app popular with Generation Z and millennials, to eBay for $1.2 billion in cash. Etsy says the deal will allow it to focus on its own marketplace.
The deal comes nearly five years after Etsy acquired Depop for $1.62 billion, at a time when second-hand clothing apps were gaining popularity.
Founded in 2011, Depop is expected to generate approximately $1 billion in gross merchandise turnover—the total value of merchandise sold through its platform—by 2025. In the US, the company recorded almost 60% year-on-year growth. As of December 31, 2025, the marketplace had seven million active buyers, nearly 90% of whom were under the age of 34, and more than three million active sellers.
“Depop has built a trusted, social marketplace with strong momentum in the popular fashion category, and we are confident that as part of eBay, Depop will be even better positioned for long-term growth, benefiting from our scale, complementary offerings and operational capabilities,” eBay CEO Jamie Iannone said in a press release.
The move comes as Etsy has struggled to grow its business following a pandemic-era e-commerce boom, competing with marketplaces like Temu and Shein as well as Amazon.
The company’s year-over-year revenue grew 2.2% in 2024, down from the 7.1% growth reported in 2023. Etsy is scheduled to report 2025 earnings on Thursday.
“We are thrilled that this transaction allows us to focus exclusively on the compelling opportunity we see in front of us: expanding the Etsy marketplace in the ways that matter most to our buyers and sellers,” Etsy CEO Kruti Patel Goyal said in a press release. “We’re proud of what the Depop team has built—a truly differentiated brand and product, built on a clear purpose and strong community—to become one of the fastest-growing fashion resale marketplaces in the U.S. I’m confident that Depop is well-positioned for its next phase of growth as part of eBay.”
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The sale is the latest in a pattern of acquiring Etsy and then dipping into niche online marketplaces. Etsy’s sale of Depop comes as the company has bought and subsequently sold other niche online marketplaces in recent years, including Brazilian e-commerce company Elo7 and musical instrument marketplace Reverb.
The transaction is expected to close in the second quarter of this year.