NEW YORK (AP) – eBay, an online marketplace known for its auction-style sales and wide variety of goods, has set its sights on the Gen Z market by acquiring the secondhand fashion platform Depop from Etsy for approximately $1.2 billion in cash. This acquisition, announced on Wednesday, aligns with the rising trend of sustainable fashion and the growing popularity of preloved items among younger shoppers.
The deal reflects a significant strategic move for eBay, as CEO Jamie Iannone expressed optimism about the potential for growth through this acquisition. In his statement, Iannone emphasized that integrating Depop into eBay's portfolio would position the platform to capture more of the younger demographic, which increasingly values uniqueness, affordability, and sustainability in their purchases. “We are confident that as part of eBay, Depop will be even more well-positioned for long-term growth, benefiting from our scale, complementary offerings, and operational capabilities,” he stated.
As of December 31, 2025, Depop has shown strong engagement, with 7 million active buyers and over 3 million active sellers. Notably, nearly 90% of Depop's users are under the age of 34, highlighting its appeal to a younger consumer base that is becoming a priority for eBay. The acquisition is expected to help eBay tap into this market segment more effectively.
This acquisition follows Etsy's purchase of Depop for $1.6 billion five years ago. Established in 2011, Depop has rapidly developed into a popular marketplace for secondhand clothing, particularly among millennials and Gen Z shoppers who prioritize stylish, budget-friendly, and eco-conscious clothing options. eBay's commitment to acquiring Depop signifies its recognition of the shifting retail landscape and the increasing demand for thrifted and vintage apparel.
eBay, headquartered in San Jose, California, has plans to execute this acquisition in cash. On the other hand, Etsy, based in Brooklyn, New York, intends to use the proceeds from this sale for various corporate strategies, including share repurchases and investments aimed at strengthening its core marketplace. Both companies’ boards have unanimously approved the transaction, which is expected to close in the second quarter of the year.
Importantly, Depop is anticipated to maintain its name, brand, platform, and cultural identity, suggesting that eBay aims to retain the unique character that has made Depop popular among its users. The announcement of the acquisition had a positive impact on the stock market, with eBay's shares rising over 7% and Etsy's shares increasing nearly 15% in after-hours trading.
This acquisition underscores the evolution of eBay as it seeks to innovate and diversify its offerings to meet the preferences of contemporary consumers. By bringing Depop under its umbrella, eBay aims to enhance its position in the competitive e-commerce landscape, particularly in the realm of vintage and secondhand fashion, which continues to attract a committed and growing customer base.
