eBay has agreed to acquire Depop from Etsy in a landmark US$1.2 billion cash deal that is expected to close in the second quarter of 2026, as the longtime online marketplace intensifies its push into the fast-growing second-hand fashion market favored by younger consumers. The acquisition, unanimously approved by both companies’ boards, comes at a moment when recommerce, the resale of pre-owned goods, is rapidly gaining traction globally, driven by a mix of sustainability trends and the economic preferences of Generation Z and millennial buyers.
Under the terms of the agreement, eBay will purchase Depop outright in cash, with Etsy planning to use the proceeds for general corporate purposes, continued share repurchases and further investment in its core marketplace business. Depop is expected to retain its brand identity, platform, and community culture after the transaction closes, preserving the mobile-first, socially oriented experience that contributed to its meteoric rise in the crowded resale space.
Depop, which was founded in 2011 and is based in London, has grown into one of the most dynamic recommerce platforms worldwide. In 2025, it recorded roughly $1 billion in gross merchandise sales, a key metric representing the total value of goods sold through the marketplace and saw an impressive near-60 percent year-over-year growth in the U.S., underscoring the strength of its momentum. As of the end of last year, the platform boasted around seven million active buyers, nearly 90 percent of whom were under the age of 34, and more than three million active sellers.
For eBay, the acquisition represents both a strategic pivot and a necessary evolution. The company, which first launched in 1995 and built its reputation as a peer-to-peer auction marketplace, has in recent years transitioned toward a broader commerce ecosystem that includes fixed-price listings. But while it has grown steadily and even forecast revenue beating Wall Street estimates, expecting between US$3 billion and US$3.05 billion in first-quarter 2026 revenue, it has struggled to capture sustained interest from younger demographics relative to newer, social-centric platforms. The Depop deal directly addresses that gap by bringing a Gen Z-oriented property into eBay’s fold and giving it access to a vibrantly engaged user base.
eBay’s strategic leadership has been deliberate in positioning the company around recommerce and sustainability, positioning resale not just as a niche trend but as a central pillar of its future growth. Fashion alone represents more than US$10 billion in annual gross merchandise volume for the marketplace and delivered meaningful year-over-year growth in 2025, evidence of the opportunity that Ebay sees in connecting its massive global audience with pre-owned fashion options that align with environmental consciousness and thrift-driven purchasing preferences.
The competitive landscape for second-hand fashion is crowded, with rivals such as Vinted and Poshmark also vying for share, as well as broader e-commerce giants encroaching on recommerce territories. But Depop’s strong brand appeal among younger buyers, cultivated through social mechanics that blend discovery, community engagement, and commerce, gives it distinct advantages that eBay hopes to amplify through its scale and operational capabilities.
Market reaction to the news reflected confidence in the strategic direction. Following the announcement, Ebay shares rose more than 7 percent in extended trading, while Etsy’s stock jumped nearly 15 percent as investors welcomed the clarity and financial return from the sale. Analysts note that the deal also allows Etsy to refocus on its primary marketplace niche after facing margin pressures from the Depop segment, which had lower adjusted EBITDA margins that weighed on Etsy’s broader performance.
Despite its popularity, Depop itself has faced some community concerns, including issues around counterfeit listings and marketplace spam, as well as debates among users about platform direction but its core demographic loyalty remains strong. Ebay’s leadership will need to balance integrating Depop into a larger corporate ecosystem while preserving the uniqueness that made it a Gen Z favorite in the first place, including its social-connected user experience and community norms that differ from traditional e-commerce marketplaces.
As the recommerce landscape continues to evolve, eBay’s acquisition of Depop marks a significant consolidation milestone, signaling that major legacy platforms are willing to pay top dollar to secure relevance among younger shoppers and capitalize on the ongoing shift toward sustainable, circular consumption patterns.
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