Etsy sells used clothing marketplace Depop to eBay for $1.2 billion

Etsy announced Wednesday that it is selling Depop, a used clothing app popular among Gen Z and millennials, to eBay for $1.2 billion in cash. Etsy says the deal will allow it to focus on its own marketplace.

The deal comes nearly five years after Etsy acquired Depop for $1.62 billion, at a time when used clothing apps were gaining popularity.

Founded in 2011, Depop generated nearly $1 billion in gross merchandise sales — the total value of goods sold through its platform — in 2025. In the US, the company saw growth of nearly 60% year-over-year. As of December 31, 2025, the marketplace had seven million active buyers, nearly 90% of whom were under the age of 34, and more than three million active sellers.

“Depop has built a trusted social marketplace with strong momentum in the pre-loved fashion category, and we are confident that as part of eBay, Depop will be better positioned for long-term growth, leveraging our scale, complementary offerings and operational capabilities,” eBay CEO Jimmy Iannone said in a press release.

The move comes as Etsy struggles to grow its business following a pandemic-era e-commerce boom, competing with marketplaces like Temu and Shein, as well as Amazon.

The company’s year-over-year revenue grew 2.2% in 2024, down from the 7.1% growth recorded in 2023. Etsy is scheduled to report its 2025 earnings on Thursday.

“We are excited that this transaction allows us to focus exclusively on the compelling opportunity we see in front of us: growing the Etsy marketplace in ways that matter to our buyers and sellers,” Etsy CEO Kruti Patel Goyal said in a press release. “We’re proud of what the Depop team has built – a truly premium brand and product, grounded in a clear purpose and strong community – into one of the fastest-growing fashion resale marketplaces in the US, and I’m confident that Depop is well-positioned for its next phase of growth as part of eBay.”

The sale is the latest in a pattern of Etsy taking over niche online markets and then eliminating them. Etsy’s sale to Depop comes as the company has bought and then sold other niche online marketplaces in recent years, including Brazilian e-commerce company Elo7 and musical instrument marketplace Reverb.

The deal is expected to close in the second quarter of this year.