eBay and Etsy have jointly announced that they have entered into a definitive agreement under which eBay will acquire Depop, a leading C2C fashion marketplace with deep recommerce roots and a highly-engaged Gen Z and Millennial customer base, for approximately $1.2 billion.
Depop is a mobile-first, community-powered fashion marketplace experiencing strong momentum with annual gross merchandise sales (GMS) of approximately $1 billion in 2025, including nearly 60% year-over-year growth in the U.S. As of the 31st of December 2025 the marketplace had 7 million active buyers, nearly 90% of which are under the age of 34, and more than 3 million active sellers — Depop has built a platform where anyone can buy, sell, explore and discover incredible secondhand fashion.
This comes as Etsy divests itself of acquisitions – they’ve already sold Reverb in 2025 and now it’s the turn of Depop – having boomed through the pandemic years, Etsy have struggled to hold on to the momentum and it appears cashing in and focusing on their core Etsy marketplace makes more sense than having their focus split across multiple platforms.
For eBay, this is looking like a bit of a bargain:
- Etsy acquire Depop in 2021 for $1.625 billion
- Sell to eBay in 2026 for $1.2 billion
- Depop 2020 gross merchandise sales (GMS) ~$650 million
- Depop 2025 gross merchandise sales (GMS) ~$1 billion
- 4 million active buyers and 2 million active sellers in 2020
- 7 million active buyers more than 3 million active sellers in 2025
Depop hasn’t exactly floundered under Etsy’s stewardship, and looking at the metrics either eBay’s purchase price looks a bit of a bargain, or Etsy overpaid to acquire Depop five years ago.
The addition of Depop will accelerate eBay’s C2C strategy by deepening its reach with younger, fashion-forward consumers and expanding its presence in one of the most dynamic areas of resale. As part of eBay, Depop will benefit from eBay’s global scale and suite of capabilities, including its financial services, shipping solutions, and trusted experiences like Authenticity Guarantee to further accelerate growth and enhance the buyer and seller experience. eBay will also expand the visibility of Depop’s inventory, including through cross-listing opportunities, which will amplify global demand and unlock additional market opportunity.
Depop has built a trusted, social-forward marketplace with strong momentum in the pre-loved fashion category, and 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. A key C2C driver, fashion represents more than $10 billion in annual gross merchandise volume (GMV) for eBay and delivered 10% year-over-year GMV growth in the U.S. in 2025. This acquisition presents an opportunity to advance one of our newest and fastest-growing Focus Categories with a marketplace that complements our existing presence, and enables us to reach a younger demographic across the expanding recommerce landscape. We’re excited to welcome the Depop team to eBay, and look forward to building on what makes them unique – their brand, culture and community – to deliver compelling benefits to buyers and sellers.
– Jamie Ianonne, Chief Executive Officer, eBay
We are excited that this transaction allows us to focus exclusively on the compelling opportunity we see in front of us: to grow the Etsy marketplace in ways that matter most to our buyers and sellers. We believe this transaction is a great outcome for Etsy’s shareholders, and a positive next step for all involved. We are proud of what the Depop team has built – a truly differentiated brand and product, grounded in clear purpose and strong community – becoming one of the fastest-growing fashion resale marketplaces in the U.S. I am confident that Depop is well-positioned for its next phase of growth as part of eBay.
– Patel Goyal, Chief Executive Officer, Etsy
We’re thrilled to begin this next chapter with eBay, whose experience in the C2C fashion space and shared belief in people, opportunity, and a more sustainable future positions us to meaningfully accelerate our marketplace in the U.S. and beyond. This transaction is a testament to the significant growth we have delivered as we have evolved our product experience and strengthened our brand’s place in the world. We’re very grateful to Kruti and the Etsy team for their partnership in advancing Depop’s business and mission to make fashion circular.
– Peter Semple, Chief Executive officer, Depop
eBay intends to fund the transaction with cash on hand. Etsy plans to utilize the proceeds for general corporate purposes, continued share repurchases and investment in its core marketplace.
The transaction, which has been unanimously approved by eBay’s and Etsy’s Board of Directors, is currently expected to close in the second quarter of 2026, subject to the satisfaction of certain closing conditions and receipt of required regulatory approvals.
Following the closing of the transaction, Depop is expected to retain its name, brand, platform, and complementary culture.
