eBay (NASDAQ:EBAY) has agreed to buy secondhand fashion marketplace Depop from Etsy for about $1.2 billion in cash, as the U.S. e-commerce group looks to deepen its push into resale and reach younger shoppers who increasingly buy and sell through mobile-first platforms.
Under the definitive agreement, Depop will be acquired by eBay, while Etsy will exit an asset it has owned and operated alongside its core handmade and creative goods marketplace.
The companies said the deal is subject to customary purchase price adjustments and is expected to close in the second quarter of 2026, pending regulatory approvals and other closing conditions.
Depop, a consumer-to-consumer fashion marketplace with a strong following among Gen Z and millennials, generated about $1 billion in gross merchandise sales in 2025, the company said.
As of Dec. 31, 2025, Depop had 7 million active buyers, nearly 90% of whom were under the age of 34, and more than 3 million active sellers.
The companies said Depop’s U.S. business grew nearly 60% year-on-year in 2025, highlighting the platform’s momentum in resale as shoppers look for value and more sustainable fashion options.
eBay said it plans to fund the acquisition with cash on hand and integrate Depop into its broader consumer-to-consumer strategy, pointing to its scale in payments, shipping, and trust features such as authentication services.
The company said Depop would retain its brand, platform and culture after the deal closes.
For Etsy, the sale provides cash proceeds it said it will use for general corporate purposes, including continued share repurchases and investment in its core marketplace.
Etsy’s chief executive framed the divestment as allowing the company to focus on growing Etsy in ways that matter most to its buyers and sellers.
The acquisition underscores how major marketplaces are paying for audience, not just commerce volume.
Depop’s appeal is its social, community-driven discovery engine and its concentration of under-34 buyers, segments that are costly to acquire through traditional online advertising.
If eBay can expand Depop’s reach without diluting what makes it feel distinct, it gains a younger on-ramp into resale and a defensible niche in fashion.