In a strategic move to tap into the lucrative Gen Z demographic, online retail giant eBay has announced its acquisition of the popular secondhand fashion platform Depop from Etsy. The deal, valued at approximately $1.2 billion in cash, was confirmed on Wednesday and is set to close in the second quarter of 2026, pending regulatory approvals.
Targeting Younger Consumers
eBay CEO Jamie Iannone highlighted that this acquisition presents a prime opportunity to attract a younger audience, leveraging Depop's strong appeal among users under 34. He stated, "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." As of December 31, 2025, Depop's marketplace boasted 7 million active buyers, with nearly 90% under the age of 34, and over 3 million active sellers, according to a joint release.
Surging Popularity of Secondhand Fashion
The acquisition capitalises on the growing trend of pre-owned clothing, driven by consumers seeking unique, affordable items and a more sustainable approach to fashion. This shift has seen a significant increase in the use of secondhand shopping apps, with Depop at the forefront of this movement. Founded in 2011, Depop was previously acquired by Etsy in 2021 for $1.6 billion, making this sale a notable development in the online retail landscape.
Financial and Operational Details
eBay, based in San Jose, California, will fund the purchase entirely in cash. Etsy, headquartered in Brooklyn, New York, plans to use the proceeds for general corporate purposes, continued share repurchases, and investment in its core marketplace. The transaction has received unanimous approval from the boards of both companies. Following the announcement, eBay's shares rose more than 7%, while Etsy's shares soared close to 15% in after-hours trading.
Future of Depop Under eBay
Despite the acquisition, Depop is expected to retain its name, brand, platform, and culture, ensuring continuity for its user base. This approach aims to maintain the app's unique identity while integrating it into eBay's broader ecosystem to enhance growth and market reach. The deal underscores eBay's commitment to expanding its footprint in the fast-growing secondhand fashion sector, aligning with broader consumer trends towards sustainability and affordability.
