eBay to buy Depop for $1.2B as Etsy refocuses on core marketplace

eBay Inc. has agreed to acquire fashion resale platform Depop from Etsy Inc. for approximately $1.2 billion in cash, marking a strategic shift for both companies as competition intensifies in online retail.

The transaction, approved by the boards of eBay and Etsy, is expected to close in the second quarter of 2026, subject to regulatory approvals and customary conditions. Depop will retain its brand, platform and operational structure after the deal closes.

Depop, founded in 2011 and based in London, operates a mobile-first marketplace focused on secondhand fashion. As of December 31, 2025, the platform reported 7 million active buyers and more than 3 million active sellers. Nearly 90% of its buyers are under the age of 34, positioning the company squarely within the Gen Z and millennial demographic.

The acquisition strengthens eBay’s push into recommerce — the resale of pre-owned goods — particularly in apparel, one of its fastest-growing categories. Fashion accounts for more than $10 billion in annual gross merchandise volume (GMV) on eBay’s platform. The company said Depop’s addition is expected to contribute one to two percentage points to overall GMV growth in 2026.

Chief Executive Jamie Iannone said the deal would expand eBay’s reach among younger consumers and deepen its presence in secondhand fashion, a segment that has gained traction as shoppers seek lower prices and more sustainable consumption options.

For Etsy, the sale signals a continued retreat from its earlier expansion strategy. The company acquired Depop in 2021 for roughly $1.6 billion as part of a broader effort to build a portfolio of niche marketplaces. In recent years, Etsy has divested several non-core assets, shifting focus back to its primary handmade and vintage goods marketplace.

Etsy said proceeds from the sale will be used for general corporate purposes, including share repurchases and reinvestment in its core platform. The company has faced slowing growth since the pandemic-driven e-commerce surge, with declines in active buyers and gross merchandise sales in recent periods amid macroeconomic pressures and increased competition.

Shares of Etsy rose sharply in extended trading following the announcement, while eBay’s stock also climbed after it released quarterly results alongside news of the acquisition.

eBay reported fourth-quarter revenue of $2.97 billion, exceeding analyst estimates, with GMV rising 10% year over year to $21.24 billion. For the first quarter, the company forecast revenue between $3 billion and $3.05 billion, above market expectations.

Executives said the Depop acquisition aligns with eBay’s broader effort to differentiate itself through authenticated, refurbished and pre-owned goods. The company plans to fund the purchase using cash on hand.

The deal reshapes ownership of one of the largest youth-focused resale platforms and underscores the growing importance of secondhand fashion in the global e-commerce market.