Etsy has agreed to sell Depop to eBay for $1.2 billion in cash, marking a major shift in Etsy’s marketplace strategy. The company announced the deal on Wednesday, stating that the move will allow it to concentrate fully on growing its core Etsy platform.
The sale comes nearly five years after Etsy acquired Depop for $1.62 billion, during a period when secondhand clothing apps were rapidly gaining traction, especially among younger consumers.
Depop’s Growth Under Etsy
Founded in 2011, Depop has grown into one of the most recognizable resale platforms for Gen Z and millennial shoppers. In 2025, the company generated approximately $1 billion in gross merchandise sales, representing the total value of goods sold through its marketplace.
In the United States, Depop recorded nearly 60% year over year growth. As of December 31, 2025, the platform reported seven million active buyers, with nearly 90% under the age of 34, and more than three million active sellers.
eBay CEO Jamie Iannone said in a statement that Depop has built a “trusted, social forward marketplace” with strong momentum in pre-loved fashion. He added that, under eBay’s ownership, Depop would benefit from greater scale, complementary offerings, and operational support to drive long term growth.
Strategic Refocus For Etsy
The divestiture reflects broader challenges at Etsy. After experiencing a significant boost during the pandemic era ecommerce boom, the company has struggled to maintain high growth levels while competing with platforms such as Temu, Shein, and Amazon.
Etsy’s year over year revenue grew just 2.2% in 2024, a slowdown compared to the 7.1% growth it reported in 2023. The company is scheduled to release its 2025 earnings results on Thursday, with investors closely watching for signs of renewed momentum.
Etsy CEO Kruti Patel Goyal said the transaction enables the company to focus exclusively on expanding the Etsy marketplace in ways that matter most to its buyers and sellers. She praised the Depop team for building a differentiated brand and community driven resale platform, adding that Depop is well positioned for its next growth phase as part of eBay.
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A Pattern Of Buying And Selling
The Depop sale fits into a broader pattern of Etsy acquiring and later divesting niche marketplaces. In recent years, the company has bought and sold other specialized ecommerce platforms, including Brazilian marketplace Elo7 and musical instrument marketplace Reverb.
The $1.2 billion all cash deal is expected to close in the second quarter of this year.
For eBay, the acquisition strengthens its presence in the fast growing fashion resale category and deepens its appeal among younger shoppers. For Etsy, the sale signals a renewed focus on its core handmade and creative goods marketplace as it navigates a more competitive ecommerce landscape.
