eBay Acquires Depop from Etsy, Impacting Online Marketplace
eBay Inc. has announced its acquisition of Depop, a leading consumer-to-consumer (C2C) fashion marketplace known for its strong engagement among Gen Z and Millennials. The deal, valued at approximately $1.2 billion in cash, is expected to enhance eBay’s marketplace offerings and strengthen its position in the fashion resale sector.
Details of the Acquisition
eBay finalized a definitive agreement with Etsy, which previously owned Depop, allowing it to acquire the platform. This move aims to boost eBay’s C2C value proposition by tapping into Depop’s vibrant community and growing fashion segment.
- Purchase Price: $1.2 billion, subject to adjustments.
- Annual Gross Merchandise Sales (GMS) of Depop: Approximately $1 billion in 2025.
- Growth Rate: Nearly 60% year-over-year growth in the U.S. market.
- Active Users: 7 million active buyers, with around 90% under 34 years old.
- Active Sellers: More than 3 million.
Strategic Impact on eBay
This acquisition aligns with eBay’s strategy to expand its influence in the fashion marketplace. Jamie Ianonne, eBay’s CEO, expressed confidence in Depop’s future growth trajectory once integrated with eBay’s expansive resources.
Fashion contributes over $10 billion to eBay’s annual gross merchandise volume (GMV), and the addition of Depop is expected to enhance user engagement and market reach, particularly among younger consumers seeking sustainable fashion options.
Statements from Leadership
Kruti Patel Goyal, CEO of Etsy, emphasized the benefits of this acquisition as a significant turning point, allowing Etsy to focus on its core marketplace while securing a favorable outcome for its shareholders.
Praise for the Depop brand came from Peter Semple, CEO of Depop, who highlighted the platform’s community-driven ethos and the positive impact the deal will have on its growth in the U.S. and international markets.
Future Outlook
The transaction has received unanimous approval from the boards of both eBay and Etsy and is set to close in the second quarter of 2026, pending regulatory approvals. Following the acquisition, Depop will maintain its brand identity and unique culture, benefiting from eBay’s operational capabilities to foster further growth.
As eBay continues to lead in the online marketplace sector, this acquisition enhances its platform’s appeal to a younger demographic and fortifies its commitment to sustainability within the fashion industry.
