Etsy has announced it will sell Depop, a popular secondhand clothing app that’s gained traction among younger shoppers, to eBay for $1.2 billion. This move allows Etsy to sharpen its focus on its main marketplace.
Etsy initially acquired Depop nearly five years ago for $1.62 billion when secondhand apps were booming. Founded in 2011, Depop has become a significant player in the resale market. In 2025, it reported about $1 billion in gross merchandise sales. The app saw impressive growth in the U.S., with nearly 60% year-over-year growth, and nearly all of its seven million active buyers are under 34. It also boasts over three million active sellers.
eBay CEO Jamie Iannone expressed confidence in Depop’s potential. He believes that, under eBay’s wing, the app will thrive due to the company’s larger resources and operational capabilities.
Etsy’s decision comes amid challenges in its growth after the pandemic. The company reported a modest revenue increase of just 2.2% in 2024, down from a growth rate of 7.1% the previous year. Competing with giants like Amazon and fast-fashion sites such as Temu and Shein has proven difficult.
Etsy’s CEO, Kruti Patel Goyal, emphasized that this sale would allow Etsy to concentrate on enhancing its marketplace. She acknowledged Depop’s success, calling it a unique brand with a strong community.
This sale reflects Etsy’s broader strategy of acquiring niche markets and eventually divesting them. In recent years, it sold other specialized sites, like the Brazilian e-commerce platform Elo7 and musical instrument marketplace Reverb.
The transaction is set to close in the second quarter of this year, indicating a shift in focus for both companies as they navigate the evolving e-commerce landscape.
Interestingly, the resale market has been trending upward. A 2023 report by ThredUp estimated that the secondhand market is poised to reach $350 billion by 2027, illustrating the growing demand for sustainable shopping options.
This sale could reshape the future of resale platforms as both Etsy and eBay adapt to changing consumer behaviors while seeking to carve out their unique positions in the market.
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