Etsy announced Wednesday that it is selling Depop, a used clothing app popular with Gen Z and millennials, to eBay for $1.2 billion in cash. Etsy said the deal will allow it to focus on its own marketplace.
The deal comes nearly five years after Etsy acquired Depop for $1.62 billion at a time when the used clothing app was growing in popularity.
Founded in 2011, Depop will generate approximately $1 billion in gross merchandise sales (the total value of merchandise sold through the platform) in 2025. In the United States, the company recorded nearly 60% year-on-year growth. As of December 31, 2025, the marketplace had 7 million active buyers, nearly 90% of whom were under 34 years of age, and more than 3 million active sellers.
“Depop has built a trusted, socially progressive marketplace built on strong momentum in the beloved fashion category, and we are confident that as part of eBay, Depop will be even better positioned for long-term growth, benefiting from our scale, complementary products and operational capabilities,” eBay CEO Jamie Iannone said in a press release.
The move comes as Etsy has struggled to grow its business since the pandemic-era e-commerce boom, competing with marketplaces like Temu, Shein and Amazon.
The company’s year-over-year revenue grew 2.2% in 2024, down from the 7.1% growth reported in 2023. Etsy is scheduled to release its 2025 earnings on Thursday.
“We’re excited that this transaction allows us to focus solely on the powerful opportunity we see before us: growing the Etsy marketplace in the ways that matter most to our buyers and sellers,” Etsy CEO Kruti Patel Goyal said in a press release. “We’re proud of what the Depop team has built—truly differentiated brands and products built on a clear purpose and strong community—that have led to one of the fastest-growing fashion resale marketplaces in the U.S. We’re confident Depop is well-positioned for the next phase of growth as part of eBay.”
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The sale is the latest in a pattern of Etsy acquiring niche online marketplaces and then selling them. Etsy’s sale of Depop comes as the company has purchased and sold other niche online marketplaces in recent years, including Brazilian e-commerce company Elo7 and musical instrument marketplace Reverb.
The transaction is expected to close in the second quarter of this year.
