Quick Facts
- EBay will pay $1.2 billion in cash for Depop, which Etsy acquired for $1.625 billion in 2021
- Depop generated approximately $1 billion in annual gross merchandise sales in 2025 with nearly 60% growth in the U.S.
- The deal is expected to close in the second quarter of 2026 and will contribute 1-2 percentage points to eBay’s GMV growth
EBay announced it will acquire secondhand fashion marketplace Depop from Etsy for approximately $1.2 billion in cash. The deal, announced February 18, represents a strategic move to capture younger demographics in the growing resale market.
Etsy will take a $425 million loss on the transaction after acquiring Depop for $1.625 billion in 2021. Etsy shares jumped 14% in extended trading following the announcement, while eBay shares surged 8%.
Depop operates as a social-forward marketplace focused on pre-owned fashion. The platform has 7 million active buyers, with nearly 90% under age 34, and over 3 million active sellers. The company generated approximately $1 billion in gross merchandise sales in 2025.
“Depop has built a trusted, social-forward marketplace with strong momentum in the pre-loved fashion category,” said eBay CEO Jamie Iannone. “This acquisition presents an opportunity to advance one of our newest and fastest-growing Focus Categories with a marketplace that complements our existing presence.”
The acquisition addresses a critical gap for eBay, which has struggled to attract younger users. Fashion already represents more than $10 billion in annual gross merchandise volume for eBay and delivered 10% year-over-year growth in the U.S. in 2025.
For Etsy, the sale allows the company to refocus on its core marketplace business. Etsy has faced declining active buyers and gross merchandise volume in 2024 while competing with Amazon, Shopify, and ultra-cheap platforms like Temu and Shein.
“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,” said Etsy CEO Kruti Patel Goyal.
eBay plans to integrate Depop’s inventory with cross-listing opportunities and provide access to its financial services, shipping solutions, and authentication programs. The company will maintain Depop as a distinct brand to preserve its appeal to younger consumers.
Neil Saunders, Managing Director of GlobalData, noted that eBay “suffers from being seen as a more traditional marketplace that lacks some of the edge of newer upstarts.” He emphasized the importance of maintaining Depop’s distinct identity.
The transaction is subject to regulatory approvals and working capital adjustments. Depop will contribute an estimated 1-2 percentage points to eBay’s total gross merchandise volume growth in 2026.
