Etsy announced on Wednesday that it is selling Depop, a secondhand clothing marketplace, to eBay for $1.2 billion in cash. The transaction is intended to allow Etsy to focus on its primary marketplace. Founded in 2011, Depop serves a demographic popular with Gen Z and millennials. The sale occurs nearly five years after Etsy acquired Depop for $1.62 billion, a period during which secondhand clothing apps experienced a surge in popularity.
Depop generated approximately $1 billion in gross merchandise sales in 2025. Gross merchandise sales represent the total value of goods sold through the platform. The United States market contributed significantly to this performance, registering nearly 60% year-over-year growth. As of December 31, 2025, the marketplace hosted seven million active buyers and more than three million active sellers. The user base is heavily skewed toward younger demographics, with nearly 90% of active buyers under the age of 34.
eBay CEO Jamie Iannone expressed confidence in the acquisition, citing Depop’s established market position. “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,” Iannone stated in the press release. This purchase aligns with eBay’s strategy to bolster its presence in the resale sector.
The divestiture occurs as Etsy faces decelerating revenue growth in the post-pandemic e-commerce environment. The company contends with competition from discount platforms like Temu and Shein, as well as established giants such as Amazon. Etsy’s year-over-year revenue growth slowed to 2.2% in 2024, a decline from the 7.1% growth reported in 2023. Etsy is scheduled to release its 2025 earnings report on Thursday.
Etsy CEO Kruti Patel Goyal described the sale as a strategic refocusing effort. “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,” Patel Goyal said. She added, “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 U.S. I am confident that Depop is well-positioned for its next phase of growth as part of eBay.”
This sale represents a continuation of Etsy’s strategy regarding niche marketplaces. The company has previously purchased and subsequently sold other specialized online platforms, including the Brazilian e-commerce company Elo7 and the musical instrument marketplace Reverb. The acquisition of Depop in 2021 occurred during a boom for secondhand clothing applications. The transaction between Etsy and eBay is expected to close in the second quarter of this year.
