In a major development in the global e-commerce industry, eBay has announced the acquisition of Depop from Etsy for $1.2 billion in an all-cash transaction. The deal is expected to close in the second quarter of 2026, subject to regulatory approvals and customary closing conditions.
The announcement has been positively received by investors, signaling strategic clarity for both companies.
Company Introductions
eBay
Founded in 1995 and headquartered in San Jose, California, eBay is one of the world’s largest global commerce platforms. The company operates in more than 190 markets worldwide and connects millions of buyers and sellers through its online marketplace.
In 2025, eBay enabled nearly $80 billion in Gross Merchandise Volume (GMV). The platform is particularly strong in Consumer-to-Consumer (C2C) commerce, collectibles, electronics, and fashion categories. Fashion alone contributes more than $10 billion in annual GMV for the company.
eBay focuses on building trusted marketplaces, offering secure payments, shipping solutions, and buyer protection programs such as Authenticity Guarantee.
Etsy
Founded in 2005 and headquartered in Brooklyn, New York, Etsy operates two-sided online marketplaces that connect creative entrepreneurs with buyers seeking unique and handmade goods.
Its primary platform, Etsy.com, is known globally for handmade, vintage, and personalized products. Etsy’s mission is to “Keep Commerce Human,” emphasizing community-driven and creative commerce.
Before this transaction, Etsy also owned Depop, operating it independently while sharing expertise in product, marketing, and technology.
Depop
Depop is a mobile-first, community-powered fashion resale marketplace focused on secondhand (pre-loved) fashion. It has built a strong presence among Gen-Z consumers by combining social discovery with commerce.
2025 Key Metrics:
- Annual Gross Merchandise Sales (GMS): ~$1 billion
- U.S. Growth: Nearly 60% year-over-year
- Active Buyers: 7 million
- Under Age 34: Nearly 90% of buyers
- Active Sellers: Over 3 million
Depop has positioned itself as one of the fastest-growing fashion resale platforms in the U.S., driven by sustainability trends and youth engagement.
Strategic Rationale Behind the Deal
Why eBay Is Acquiring Depop
The acquisition aligns with eBay’s strategy to expand its C2C marketplace leadership and strengthen its presence in fashion recommerce.
Key benefits for eBay:
- Deeper reach into younger, fashion-forward consumers
- Expansion in one of the fastest-growing resale segments
- Complementary social-first marketplace model
- Increased inventory visibility through cross-listing opportunities
Depop will benefit from eBay’s global scale, financial services, shipping infrastructure, and trusted buyer protections. This integration is expected to accelerate growth while preserving Depop’s brand identity.
In simple terms, eBay is making a calculated bet on the future of circular fashion and recommerce.
Why Etsy Is Selling Depop
For Etsy, this transaction represents a strategic refocus on its core marketplace.
Etsy plans to use the proceeds for:
- General corporate purposes
- Continued share repurchases
- Investment in its primary Etsy marketplace
The move allows Etsy to concentrate fully on strengthening its handmade and creative goods ecosystem while improving capital allocation efficiency.
Transaction Details
- Deal Value: $1.2 billion
- Structure: All-cash transaction
- Funding Source: eBay’s cash on hand
- Expected Closing: Q2 2026
- Board Approval: Unanimously approved by both companies
After closing, Depop is expected to retain its name, platform, brand identity, and community-driven culture.
Industry Impact: Recommerce as a Long-Term Growth Driver
The global secondhand and sustainable fashion market continues to expand rapidly due to:
- Growing environmental awareness
- Increased demand for affordable branded fashion
- Mobile-first shopping behavior
- Social-driven discovery experiences
Depop’s strong momentum and Gen-Z dominance make it a strategic asset in this evolving landscape.
What This Means for Investors
For eBay:
- Strengthens C2C leadership
- Expands youth demographic reach
- Enhances fashion category growth potential
- Positions the company strongly in recommerce
For Etsy:
- Streamlines operations
- Strengthens balance sheet
- Focuses capital on core business
- Enhances shareholder value through buybacks
Outcome
This $1.2 billion transaction is more than a simple asset sale. It reflects two distinct strategic priorities:
- eBay is investing in future growth through youth-driven fashion recommerce.
- Etsy is sharpening its focus on core operations and profitability.
As the circular fashion economy continues to grow, this acquisition could play a defining role in shaping competitive dynamics within the global resale market in the years ahead.
Source: Etsy news
