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

In a significant move, Etsy has announced the sale of its secondhand clothing platform, Depop, to eBay for a staggering $1.2 billion in cash. This transaction marks a strategic shift for Etsy, enabling the company to concentrate more on its core marketplace operations. Etsy originally acquired Depop almost five years ago for $1.62 billion, a period when secondhand clothing marketplaces were rapidly gaining traction among younger consumers. Established in 2011, Depop achieved remarkable success, reporting approximately $1 billion in gross merchandise sales in 2025 alone. The platform experienced impressive growth, particularly in the U.S., where it saw nearly 60% year-over-year increase. As of the end of 2025, Depop boasted around seven million active buyers, with a striking 90% of them under the age of 34, along with over three million active sellers. eBay's CEO, Jamie Iannone, expressed confidence in Depop's future, emphasizing the platform's strong community and innovative approach to pre-loved fashion. He noted that as part of eBay, Depop would be better positioned for sustainable growth thanks to eBay’s extensive resources and operational strengths. This sale comes at a time when Etsy has been facing challenges in the post-pandemic market, competing against other large marketplaces, including Temu, Shein, and Amazon. The company's revenue growth has slowed, with a mere 2.2% increase reported in 2024, down from 7.1% in 2023. Etsy is set to announce its earnings for 2025 soon. Etsy's CEO, Kruti Patel Goyal, shared her enthusiasm for the transaction, highlighting the opportunity it presents for Etsy to enhance its marketplace offerings. She praised the Depop team for creating a unique brand and product, underscoring their role in the rapid growth of fashion resale in the U.S. The sale of Depop aligns with Etsy's recent trend of acquiring and divesting niche online marketplaces, having previously sold Brazilian e-commerce site Elo7 and musical instrument platform Reverb. The deal is anticipated to finalize in the second quarter of the year.