Etsy announced Wednesday that it will sell Depop, the used clothing app popular with Gen Z and Millennials, to eBay for $1.2 billion in cash. Etsy says the partnership will allow it to focus on its marketplace.
The deal comes nearly five years after Etsy acquired Depop for $1.62 billion, at a time when used clothing apps were growing in popularity.
Founded in 2011, Depop generated approximately $1 billion in gross merchandise sales (the total value of goods sold through its platform) in 2025. In the U.S., the company grew nearly 60% year over year. As of December 31, 2025, the marketplace had 7 million active buyers, nearly 90% of whom were under the age of 34, and over 3 million active sellers.
“Depop has built a trusted, social-forward marketplace with strong momentum in the classic and beloved fashion category, and we are confident that, as part of eBay, we will benefit from our scale, complementary services and operational capabilities, making us even better positioned for long-term growth,” said Jamie Iannone, CEO of eBay, in a press release.
The move comes as Etsy struggles to grow its business after the pandemic-era e-commerce boom, competing with marketplaces like Temu and Shein as well as Amazon.
The company’s 2024 sales increased 2.2% year over year, down from the 7.1% growth reported in 2023. Etsy is scheduled to release its 2025 earnings on Thursday.
“We’re excited about this transaction, which allows us to focus on the exciting opportunity before us: growing the Etsy Marketplace in the ways that matter most to buyers and sellers,” Etsy CEO Kurti Patel Goyal said in a press release. “We’re proud of what the Depop team has built – a truly differentiated brand and product based on a clear purpose and strong community. We’ve become one of the fastest-growing fashion resale marketplaces in the U.S., and we believe Depop, as part of eBay, is well-positioned for its next phase of growth.”
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The sale is the latest in a pattern of Etsy acquiring and then selling niche online marketplaces. Etsy’s sale of Depop comes after the company has acquired and subsequently sold other niche online marketplaces in recent years, including Brazilian e-commerce company Elo7 and musical instrument marketplace Reverb.
The transaction is expected to close in the second quarter of this year.
