Etsy is selling Depop, a used clothing app popular with Gen Z and millennials, to eBay for $1.2 billion in cash. announced on Wednesday. Etsy says the deal will allow the company to focus on its own marketplace.
The deal comes nearly five years after Etsy acquired Depop for $1.62 billion, at a time when second-hand clothing apps were popular. are becoming increasingly popular.
Founded in 2011, Depop will generate approximately $1 billion in gross merchandise sales by 2025 – the total value of goods sold through its platform. In the US, the company experienced almost 60% year-on-year growth. 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-focused marketplace with strong momentum in the pre-owned 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 Jamie Iannone, CEO of eBay. 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 year-over-year revenue grew 2.2% in 2024, compared to the 7.1% growth reported in 2023. Etsy is expected to report its 2025 earnings on Thursday.
“We’re pleased that this transaction allows us to focus solely on the compelling opportunity we see before 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, based on a clear purpose and a strong community – making it one of the fastest growing fashion resale marketplaces in the US. I am confident that Depop is well positioned for its next phase of growth as part of eBay.”
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The sale is the latest in a pattern of Etsy acquiring and then divesting niche online marketplaces. 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.
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