In a significant move to capture a younger audience, the online marketplace eBay has finalized a deal to purchase the British fashion resale platform Depop for $1.2 billion. The acquisition, from its current owner Etsy, is seen as a strategic effort by eBay to strengthen its position in the fast-growing secondhand apparel sector, which is particularly popular with Generation Z consumers.
The transaction underscores the booming popularity of recommerce, driven by economic pressures and a growing emphasis on sustainable fashion. Depop, known for its community-driven platform, boasts approximately 7 million active buyers, with the vast majority under the age of 34. The company reported gross merchandise sales of around $1 billion last year, with its U.S. operations experiencing rapid growth.
Under the terms of the agreement, Depop will continue to operate under its own brand and maintain its distinct platform and culture. eBay’s leadership stated the purchase is intended to deepen its connection with fashion-conscious younger shoppers and expand its footprint in one of retail’s most dynamic segments.
For Etsy, the sale represents a strategic shift. The company, which acquired Depop for $1.6 billion in 2021, stated that divesting the platform will allow it to refocus resources on its core handmade and vintage goods marketplace.
The deal has received approval from the boards of both companies and is expected to close later this year, pending regulatory review. Financial markets reacted positively to the news, with shares in both eBay and Etsy rising following the announcement.
