In a major strategic move, eBay has announced its acquisition of the popular second-hand clothing application Depop from rival Etsy for a substantial $1.2 billion, equivalent to approximately £890 million. This transaction is set to finalise in the second quarter of this year, marking a significant development in the online retail landscape.
Targeting a Younger Demographic
eBay has explicitly stated that this deal is designed to enhance its appeal to a younger demographic, particularly Generation Z and Millennial shoppers who are increasingly prioritising sustainability and eco-friendly consumption habits. Depop, which was originally founded in London back in 2011, is anticipated to maintain its distinct name, brand identity, and platform operations post-acquisition. This acquisition follows Etsy's purchase of Depop five years ago for $1.62 billion, highlighting the evolving dynamics within the second-hand fashion market.
Rising Popularity and Market Growth
The business has experienced a surge in popularity, driven by growing demand from younger consumers seeking more sustainable shopping alternatives. At the close of the previous year, Depop boasted an impressive seven million active buyers, with nearly 90% of these users under the age of 34. Furthermore, sales in the United States have skyrocketed by almost 60% over the past year, underscoring the platform's rapid expansion and strong market presence.
Executive Insights and Strategic Vision
Jamie Ianonne, the chief executive of eBay, commented on the acquisition, emphasising Depop's trusted and socially-driven marketplace. He noted, "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." Ianonne highlighted that fashion represents a key consumer-to-consumer driver for eBay, accounting for over $10 billion in annual gross merchandise volume and delivering a 10% year-over-year growth in the US during 2025.
He added, "This acquisition presents an opportunity to advance one of our newest and fastest-growing Focus Categories with a marketplace that complements our existing presence, and enables us to reach a younger demographic across the expanding recommerce landscape. We're excited to welcome the Depop team to eBay, and look forward to building on what makes them unique – their brand, culture and community – to deliver compelling benefits to buyers and sellers."
Perspectives from Etsy and Depop Leadership
Kruti Patel Goyal, chief executive of Etsy, expressed optimism about the transaction, stating, "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 believe this transaction is a great outcome for Etsy's shareholders, and a positive next step for all involved. We are proud of what the Depop team has built – a truly differentiated brand and product, grounded in clear purpose and strong community – becoming one of the fastest-growing fashion resale marketplaces in the US. I am confident that Depop is well-positioned for its next phase of growth as part of eBay."
Peter Semple, chief executive of Depop, shared his enthusiasm, saying, "We’re thrilled to begin this next chapter with eBay, whose experience in the C2C fashion space and shared belief in people, opportunity, and a more sustainable future positions us to meaningfully accelerate our marketplace in the US and beyond. This transaction is a testament to the significant growth we have delivered as we have evolved our product experience and strengthened our brand’s place in the world."
Implications for the Online Retail Sector
This acquisition underscores the increasing importance of sustainability and second-hand commerce in the global retail industry. By integrating Depop's youthful and community-focused platform, eBay aims to strengthen its position in the competitive fashion resale market, leveraging Depop's strong growth trajectory and loyal user base to drive future innovation and expansion.
