Etsy sells secondhand clothing marketplace Depop to eBay for $1.2B

Etsy is selling Depop, a secondhand covering app fashionable with Gen Z and millennials, to eBay for $1.2 cardinal successful cash, the institution announced connected Wednesday. Etsy says the woody volition let it to absorption connected its ain marketplace.

The woody comes astir 5 years aft Etsy acquired Depop for $1.62 billion, astatine a clip erstwhile secondhand covering apps were gaining successful popularity.

Founded successful 2011, Depop generated astir $1 cardinal successful gross merchandise income — the full worth of goods sold done its level — successful 2025. In the U.S., the institution saw astir 60% year-over-year growth. As of December 31, 2025, the marketplace had 7 cardinal progressive buyers, astir 90% of whom were nether 34, and much than 3 cardinal progressive sellers.

“Depop has built a trusted, social-forward marketplace with beardown momentum successful the pre-loved manner category, and we are assured that arsenic portion of eBay, Depop volition beryllium adjacent much well-positioned for semipermanent growth, benefiting from our scale, complementary offerings, and operational capabilities,” said eBay CEO Jamie Iannone successful a press release.

The determination comes arsenic Etsy has struggled to turn its concern aft the pandemic-era e-commerce boom, competing with marketplaces similar Temu and Shein, arsenic good arsenic Amazon.

The company’s year-over-year gross grew 2.2% successful 2024, down from 7.1% maturation reported successful 2023. Etsy is scheduled to merchandise its 2025 net connected Thursday.

“We are excited that this transaction allows america to absorption exclusively connected the compelling accidental we spot successful beforehand of us: to turn the Etsy marketplace successful ways that substance astir to our buyers and sellers,” said Etsy CEO Kruti Patel Goyal successful a property release. “We are arrogant of what the Depop squad has built – a genuinely differentiated marque and product, grounded successful wide intent and beardown assemblage – becoming 1 of the fastest-growing manner resale marketplaces successful the U.S. I americium assured that Depop is well-positioned for its adjacent signifier of maturation arsenic portion of eBay.”

The merchantability is the latest successful a signifier of Etsy acquiring and past divesting niche online marketplaces. Etsy’s merchantability of Depop comes arsenic the institution has purchased and past sold different niche online marketplaces successful caller years, including Brazilian e-commerce institution Elo7 and philharmonic instrumentality marketplace Reverb.

The woody is expected to adjacent successful the 2nd 4th of this year.