Etsy has announced it is selling Depop, a secondhand clothing app popular with Gen Z and millennials, to eBay for $1.2 billion in cash. The company stated this move will allow it to focus on its core marketplace. This sale comes nearly five years after Etsy originally acquired Depop for $1.62 billion, during a period when secondhand clothing apps were surging in popularity.
Founded in 2011, Depop generated approximately $1 billion in gross merchandise sales in 2025. The company saw nearly 60% year-over-year growth in the U.S. As of December 31, 2025, the marketplace had seven million active buyers, with nearly 90% under the age of 34, and more than three million active sellers.
eBay’s CEO expressed confidence that Depop’s social-forward marketplace for pre-loved fashion will benefit from eBay’s scale and capabilities for long-term growth.
This divestiture occurs as Etsy faces challenges in growing its business following the pandemic-era e-commerce boom, while competing with marketplaces like Temu, Shein, and Amazon. Etsy’s year-over-year revenue growth slowed to 2.2% in 2024, down from 7.1% in 2023. The company is scheduled to release its 2025 earnings soon.
Etsy’s CEO noted the sale enables the company to concentrate on growing the Etsy marketplace for its buyers and sellers, while expressing confidence in Depop’s future growth under eBay.
The sale continues a pattern for Etsy of acquiring and later divesting niche online marketplaces, following similar transactions with companies like Elo7 and Reverb. The Depop deal is expected to close in the second quarter of this year.