Etsy has agreed to sell its second-hand fashion marketplace Depop to eBay in a deal valued at approximately $1.2 billion, signaling a major shift in strategy for the U.S. online marketplace company. The transaction returns Depop to eBay’s portfolio, strengthening the latter’s position in the fast-growing resale apparel market driven largely by Gen Z shoppers.
Etsy originally acquired Depop in 2021 as part of a broader effort to expand beyond handmade and vintage goods into social-commerce fashion. However, after several years of slowing growth and increased competition across resale platforms, the company has decided to refocus on its core marketplace operations, where profit margins and customer loyalty remain stronger.
Depop, known for its Instagram-like interface and influencer-led storefronts, has built a loyal user base among younger consumers seeking affordable and sustainable fashion. The platform’s model — blending social media discovery with peer-to-peer selling — helped popularize resale culture during the pandemic, when online thrift shopping surged globally.
For eBay, the acquisition represents a strategic return to a category it helped pioneer decades ago. The company has increasingly invested in authenticated sneakers, luxury resale and pre-owned fashion, areas that continue to grow as consumers seek cheaper alternatives amid economic pressure and rising retail prices. By integrating Depop’s social features with eBay’s global logistics and payments infrastructure, the company aims to capture younger buyers who have largely migrated away from traditional auction marketplaces.
Analysts say the deal reflects a broader consolidation in the resale industry as platforms compete for scale, profitability and loyal communities. The global second-hand apparel market is projected to grow significantly over the next decade, fueled by sustainability concerns and shifting consumer behavior.
The transaction is expected to close later this year, subject to regulatory approvals and customary conditions.
