Hajra Naz
Etsy is selling Depop, a secondhand clothing app popular with Gen Z and millennials, to eBay for $1.2 billion in cash, the company announced Wednesday. Etsy says the deal will let it focus more on its own marketplace.
The sale comes nearly five years after Etsy acquired Depop for $1.62 billion, when secondhand fashion apps were booming.
Depop’s Growth and User Base
Founded in 2011, Depop generated about $1 billion in gross merchandise sales in 2025. In the U.S., the app saw nearly 60% year-over-year growth. By the end of 2025, Depop had 7 million active buyers, almost 90% under age 34, and over 3 million active sellers.
“Depop has built a trusted, social-forward marketplace with strong momentum in pre-loved fashion,” said eBay CEO Jamie Iannone. “As part of eBay, Depop will have more resources and scale to grow even further.”
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Etsy’s Focus on Its Core Marketplace
The sale comes as Etsy has struggled to grow after the pandemic e-commerce boom. The company competes with platforms like Temu, Shein, and Amazon. Etsy’s revenue growth slowed to 2.2% in 2024, down from 7.1% in 2023. Etsy is set to release its 2025 earnings on Thursday.
“This transaction allows us to focus exclusively on growing the Etsy marketplace,” said Etsy CEO Kruti Patel Goyal. “We are proud of what the Depop team has built — a unique brand and strong community. Depop is well-positioned for its next phase of growth as part of eBay.”
Etsy’s Pattern of Buying and Selling Niche Marketplaces
Etsy has a history of acquiring and later selling niche online marketplaces. Recent examples include Brazilian e-commerce company Elo7 and musical instrument marketplace Reverb.
The Depop deal is expected to close in the second quarter of this year.
