Etsy sells secondhand clothing marketplace Depop to eBay for $1.2B

Etsy said on Wednesday that it is selling Depop, the secondhand clothing marketplace that has become especially popular with Gen Z and millennial shoppers, to eBay for $1.2 billion in cash. Etsy said the sale will let it sharpen its focus on its core marketplace.

The deal comes nearly five years after Etsy bought Depop for $1.62 billion, during a period when secondhand fashion apps were surging in popularity and resale platforms were drawing intense interest across e-commerce.

Depop was founded in 2011 and generated about $1 billion in gross merchandise sales in 2025, which reflects the total value of items sold through the platform. In the U.S., Depop delivered year-over-year growth of nearly 60%. As of December 31, 2025, Depop reported 7 million active buyers — nearly 90% of whom were under 34 — and more than 3 million active sellers.

“Depop has built a trusted, social-forward marketplace with strong momentum in the pre-loved fashion category, and 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,” eBay CEO Jamie Iannone said in the press release.

The sale arrives as Etsy has found it difficult to sustain growth after the pandemic-era e-commerce surge, facing pressure from fast-growing marketplace rivals like Temu and Shein, as well as Amazon.

Etsy reported year-over-year revenue growth of 2.2% in 2024, down from 7.1% in 2023. Etsy is set to report its 2025 earnings on Thursday.

“We are excited that 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,” 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, grounded in clear purpose and strong community – becoming one of the fastest-growing fashion resale marketplaces in the U.S. I am confident that Depop is well-positioned for its next phase of growth as part of eBay.”

The move continues a recent pattern of Etsy buying niche online marketplaces and later divesting them. In recent years, Etsy has acquired and later sold other specialised platforms, including the Brazilian e-commerce company Elo7 and the musical instrument marketplace Reverb. The transaction is expected to close in the second quarter of this year.