Etsy Offloads Depop to eBay: A $1.2 Billion Shift in Second-Hand Fashion

The Rise and Fall of Depop Under Etsy's Wing

In a move that has sent ripples across the fashion resale sector, Etsy has sold its second-hand clothing app, Depop, to eBay for a hefty $1.2 billion (£890 million). Just five years ago, Etsy acquired Depop for $1.6 billion, showcasing an aggressive push into the vibrant world of 'pre-loved' fashion.

The Why Behind the Sale

So, why did Etsy decide to part ways with a brand that targets the increasingly eco-conscious youth? The changing tides in online business have led Etsy to reevaluate its portfolio. With nearly 90% of Depop's seven million buyers under the age of 34, eBay is looking to tap into a youthful market that prioritizes sustainability over fast fashion.

eBay's CEO Jamie Ianonne noted, "This acquisition will enable us to reach a younger demographic and expand our footprint in the re-commerce landscape."

The Growing Demand for Second-Hand Goods

As the culture of sustainability continues to burgeon, platforms allowing users to buy and sell used clothing have gained immense popularity. In recent years, young consumers have increasingly sought alternatives to traditional retailers, driven by environmental concerns and changing shopping habits.

• Depop boasts over three million active sellers.
• The platform has been lauded as one of the fastest-growing fashion resale marketplaces in the U.S.

eBay's Renewed Focus on Resale Properties

The all-cash deal is expected to finalize by mid-year, with Depop maintaining its brand and identity. This acquisition aligns with eBay's ambition to bolster its used clothing sales, which the company identifies as one of its fastest-growing sectors.

Recent reports reveal eBay's revenues surged to $11.1 billion in 2025, indicating robust growth amid competitive pressures. While Etsy's share price saw a significant jump of 15% post-announcement, eBay's share rose nearly 6.5%. Clearly, this move is being positively received by the markets.

The Market Shift: Competition in Focus

A significant factor in Etsy's decision to divest Depop is the growing competition from Chinese giants like Temu and Shein, which have changed the landscape entirely. With lower prices and quick shipping options, the competition has made it increasingly difficult for niche platforms to thrive. Etsy, known for handcrafted and unique items, has struggled to maintain its market share, propelling the company to sell off ancillary investments.

In the past two years, Etsy has also sold off Elo7, a Brazilian marketplace, at a loss, and plans to part with Reverb, its music equipment resale site.

The Takeaway: A Cautious but Strategic Move

As we consider Etsy's path moving forward, the sale of Depop underlines a broader trend in the retail landscape. With eBay actively seeking to capture a younger demographic through sustainable offerings, the future of shopping could be increasingly focused on the re-commerce space. I believe we are witnessing a pivotal moment in the evolution of online marketplaces. As these major players adapt to the dynamics of consumer preference, we might see further consolidation and shifts aimed at prioritizing sustainability and innovation.

“I am confident that Depop is well-positioned for its next phase of growth as part of eBay,” asserted Kruti Patel Goyal, Etsy's CEO, conveying optimism amid these transformations.

This transformative sale is not just a financial transaction; it's a step toward aligning retail practices with evolving consumer values. As the landscape continues to shift, I will be monitoring how these changes impact both consumer behavior and market strategies.