Ebay is set to acquire resale platform Depop from online marketplace Etsy for approximately $1.2 billion, the companies announced on Wednesday. The deal is expected to close by the second quarter of 2026. Ebay shares were up 6.7% in after hours trading on Wednesday evening, following the news.
Depop, a Gen Z resale favorite, is another notch in Ebay’s growing fashion strategy. “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,” Ebay CEO Jamie Ianonne said in the release.
Ebay, which on Wednesday reported 13% revenue growth to $3 billion for fiscal 2025 (on a constant currency basis), has been ramping up its fashion efforts in recent years. The company has established a Circular Fashion Fund, designed to support circular fashion startups, in the UK, the US, Germany and Australia. In January, it announced it was expanding the fund to the EU, Switzerland and Canada. Ebay also has a partnership with Vogue parent company Conde Nast, wherein Ebay is the official pre-loved partner for magazines including Vogue and GQ.
Currently, fashion represents more than $10 billion in annual gross merchandise volume (GMV) for Ebay and delivered 10% year-over-year GMV growth in the US in 2025, according to the company. “Fashion is a perfect fit for Ebay’s broader vision, sitting at the intersection of culture, commerce and community,” CEO Jamie Ianonne told Vogue Business last year.
Ebay hopes that this acquisition will enable the company to push further into the Gen Z market. “This acquisition presents an opportunity to advance one of our newest and fastest-growing [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.”
“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 US and beyond,” Depop CEO Peter Semple said in a statement. “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.”
With Depop joining Ebay, the resale market will see some consolidation. As secondhand shopping has exploded in popularity in recent years, players from Thredup to Poshmark and luxury offers like The RealReal and Vestiaire Collective have been competing to recruit both buyers and sellers to their platforms. How Depop will sit in the Ebay ecosystem remains to be seen; already, some users on Reddit are discussing how fee structures might change or whether or not binding offers – which lock buyers into a sale earlier in the transaction process – will be introduced. There will be cross-listing opportunities, which will amplify the visibility of Depop listings, according to Ebay.
Under Etsy, which acquired Depop for $1.63 billion in 2021, Depop remained an independent marketplace. The company last year also sold Reverb, a musical instrument resale platform, signalling efforts to streamline. In the press release, the company said it would focus on its core marketplace business moving forward. In its most recent quarterly earnings report in October, GMV for Etsy and Depop was down 2.4% year-over-year to $242 million, while revenue was up 6% to $678 million in the same period. Active sellers and buyers both declined in the quarter.
“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,” CEO Kruti Patel Goyal said in a statement. “I am confident that Depop is well-positioned for its next phase of growth as part of Ebay.”
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