Etsy has announced the sale of Depop, a popular secondhand clothing platform among Gen Z and millennials, to eBay for a remarkable $1.2 billion in cash. This strategic move is aimed at allowing Etsy to concentrate on enhancing its own marketplace.
This transaction comes nearly five years after Etsy acquired Depop for $1.62 billion, during a time when the demand for secondhand clothing applications was rapidly increasing.
Founded in 2011, Depop generated around $1 billion in gross merchandise sales in 2025, showcasing its significant market presence. In the U.S., the platform experienced nearly 60% year-over-year growth, boasting seven million active buyers, with a striking 90% of them under the age of 34, alongside over three million active sellers.
eBay CEO Jamie Iannone expressed confidence in Depop's future, stating, "Depop has built a trusted, social-forward marketplace with strong momentum in the pre-loved fashion category, and 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."
The decision to sell comes as Etsy faces challenges in expanding its business following the surge in e-commerce during the pandemic, competing with platforms like Temu, Shein, and Amazon. Etsy's year-over-year revenue growth has slowed to 2.2% in 2024, a decline from the 7.1% growth reported in 2023. The company is set to release its 2025 earnings soon.
Etsy CEO Kruti Patel Goyal remarked, "We are excited that this transaction allows us to focus exclusively on the compelling opportunity we see in front of us: to grow the Etsy marketplace in ways that matter most to our buyers and sellers. We are proud of what the Depop team has built - a truly differentiated brand and product, grounded in clear purpose and strong community."
The sale of Depop is part of a broader trend of Etsy acquiring and subsequently divesting niche online marketplaces, which has included previous sales of Brazilian e-commerce site Elo7 and musical instrument marketplace Reverb.
The deal is anticipated to finalize in the second quarter of this year.
