eBay Acquires Depop From Etsy in $1.2B Cash Deal
eBay has officially entered into an agreement to acquire the fashion resale platform Depop from Etsy for $1.2 billion in cash. The transaction, announced on Wednesday, marks a significant shift for both e-commerce giants as they refine their long-term market strategies.
For Etsy, the move represents an exit from an asset it held for nearly five years, following its initial acquisition of the platform for $1.62 billion. The company stated that the divestiture is intended to sharpen its focus on the core Etsy marketplace, which has faced mounting pressure from competitors such as Amazon, Temu, and Shein.
Market Performance and Growth
Depop, which launched in 2011, continues to maintain a strong foothold among younger demographics. Key performance indicators for the platform include:
- Gross Merchandise Sales: Approximately $1 billion generated in 2025.
- User Base: Seven million active buyers and over three million active sellers as of December 31, 2025.
- Demographics: Nearly 90% of the buyer base is under the age of 34.
- Regional Growth: The platform recorded nearly 60% year-over-year growth in the U.S. market.
Strategic Realignment
eBay CEO Jamie Iannone highlighted the synergy between the two brands, noting that Depop’s social-forward approach to pre-loved fashion aligns with eBay’s existing operational scale. “We are confident that as part of eBay, Depop will be even more well-positioned for long-term growth, benefiting from our scale, complementary offerings, and operational capabilities,” Iannone stated in the official announcement.
Etsy CEO Kruti Patel Goyal framed the sale as a strategic pivot. The company has seen its revenue growth slow, reporting a 2.2% year-over-year increase in 2024, compared to 7.1% in 2023. “This transaction allows us to focus exclusively on the compelling opportunity we see in front of us: to grow the Etsy marketplace in ways that matter most to our buyers and sellers,” Goyal said.
This sale follows a broader trend for Etsy, which has previously acquired and subsequently sold other niche marketplaces, including the musical instrument platform Reverb and the Brazilian e-commerce site Elo7. The acquisition of Depop by eBay is expected to finalize in the second quarter of this year.