Etsy is selling Depop, a second-hand clothing app popular with Gen Z and millennials, to eBay for $1.2 billion in cash, the company says was announced on Wednesday. Etsy says the deal will allow it to focus on its own market.
The deal comes nearly five years after Etsy bought Depop for $1.62 billion, at a time when second-hand clothing apps were is gaining in popularity.
Depop, founded in 2011, is set to generate about $1 billion in gross merchandise sales — the total value of goods sold through its platform — by 2025. In the US, the company has seen growth of nearly 60% year-over-year. As of December 31, 2025, the marketplace had seven million active buyers, nearly 90% of whom were under the age of 34, and more than three million active sellers.
“Depop has built a trusted, socially driven marketplace with strong momentum in the fashion category, and we are confident that as part of eBay, Depop will be even better positioned for long-term growth, benefiting from our scale, complementary offerings and operational capabilities,” said eBay CEO Jamie Iannone. press release.
The move comes as Etsy struggles to grow its business following a pandemic-era e-commerce boom, competing with marketplaces such as Temu and Shein, as well as Amazon.
The company’s year-over-year revenue grew 2.2% in 2024, up from 7.1% growth reported in 2023. Etsy is scheduled to report 2025 earnings on Thursday.
“We are excited that this transaction allows us to focus solely on the exciting opportunity we see in front of us: growing the Etsy marketplace in ways that matter most to our buyers and sellers,” Etsy CEO Kruti Patel Goyal said in the press release. “We are proud of what the Depop team has built – a truly differentiated brand and product, with a clear purpose and strong community – that is becoming one of the fastest growing fashion resale marketplaces in the US.
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The sale is the latest in a pattern of Etsy acquiring and then divesting niche online markets. Etsy’s sale of Depop comes as the company has bought and then sold other niche online marketplaces in recent years, including Brazilian e-commerce company Elo7 and musical instrument marketplace Reverb.
The deal is expected to close in the second quarter of this year.
