The Tamesis
Ebay will acquire resale platform Depop from online marketplace Etsy for about $1.2 billion, the companies announced Wednesday. The transaction is expected to close in the second quarter of 2026. Ebay shares rose 6.7% in after-hours trading Wednesday night after the news broke.
Depop, a favorite among Gen Z for resale products, is another step in eBay’s growing fashion strategy. “Depop has built a trusted social marketplace with strong momentum in popular fashion categories, and we believe that as part of Ebay, Depop will benefit from our scale, complementary products and operational capabilities, making it better positioned for long-term growth,” Ebay CEO Jamie Ianonne said in a press release.
On Wednesday, Ebay reported a 13% increase in fiscal year 2025 revenue to $3 billion (at constant exchange rates). In recent years, Ebay has been increasing its fashion business. The company has established Circular Fashion Funds in the UK, US, Germany and Australia to support circular fashion start-ups. In January, it announced it was expanding the fund to the European Union, Switzerland and Canada. eBay also works with Fashion Parent company Condé Nast, of which Ebay is an official partner of many magazines, including Fashion and Q.
According to the company, the fashion industry’s annual gross merchandise volume (GMV) on eBay currently exceeds $10 billion, and by 2025, U.S. GMV will achieve 10% year-over-year growth. “Fashion fits perfectly into eBay’s broader vision, sitting at the intersection of culture, commerce and community,” said CEO Jamie Ianonne. fashion business last year.
Ebay hopes the acquisition will allow the company to further tap into the Gen Z market. “This acquisition provides an opportunity to advance one of our newest and fastest growing projects [categories] This marketplace complements our existing business and allows us to reach a younger demographic in the expanding e-commerce space. We’re excited to welcome the Depop team to eBay and look forward to building on what makes them unique—brand, culture, and community—to deliver compelling benefits to buyers and sellers. “
“We’re excited to begin this next chapter with Ebay, whose experience in C2C fashion and shared belief in people, opportunity and a more sustainable future allows us to meaningfully accelerate our market growth in the U.S. and beyond,” Depop CEO Peter Semple said in a statement. “This deal is a testament to the significant growth we have already achieved as we continue to evolve our product experience and strengthen our brand’s place in the world.”
With Depop joining Ebay, there will be some consolidation in the resale market. As second-hand shopping has grown in popularity in recent years, luxury brands from Thredup to Poshmark, as well as The RealReal and Vestiaire Collective, have been competing to recruit buyers and sellers to their platforms. How Depop will fit into the Ebay ecosystem remains to be seen. Some users on Reddit are already discussing how the fee structure might change, or whether binding offers (which lock buyers into a sale early in the process) will be introduced. According to Ebay, there will be cross-listing opportunities, which will expand the visibility of Depop listings.
Etsy acquired Depop for $1.63 billion in 2021, and Depop remains an independent marketplace under the company’s leadership. The company also sold musical instrument resale platform Reverb last year, a sign of its efforts to streamline its business. The company said in a press release that it will focus on its core market business going forward. In the latest quarterly earnings report in October, Etsy and Depop’s GMV fell 2.4% year-on-year to $242 million, while revenue increased 6% to $678 million during the same period. Active sellers and buyers both declined during the quarter.
“We are pleased that this transaction allows us to focus on the compelling opportunity before us: growing the Etsy marketplace in the ways that matter most to our buyers and sellers,” CEO Kruti Patel Goyal said in a statement. “I believe Depop is well-positioned for its next phase of growth as part of eBay.”
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