Depop is bought by eBay for $1.2bn, as the resale fashion market heats up
Second-hand fashion app popular with Gen Z consumers, is one of the most downloaded apps in the world. Etsy purchased the platform for $1.6bn in 2021 but decided to sell as part of its shift to focus on core business. Deal expected to be completed by the middle of this year Depop’s brand will remain and it will operate within eBay.
EBay wants Depopulation
Depop has seven million buyers who are active. Nearly 90% of them are younger than 34. More than three million sellers are active on the app.
Jamie Iannone is the CEO of eBay. He said that second-hand clothing was one of their fastest growing categories. eBay’s position on the growing re-commerce market is strengthened by adding Depop. Resale apps are gaining popularity among younger consumers who want to find affordable, sustainable and fashionable options. The trend is growing worldwide.
Vinted, and others are a rising competitor
Depop used to be the leader of fashion resale applications. Vinted, a competitor of Depop’s, has put pressure on the company. Vinted has attracted many more retailers, according to retail analyst Catherine Shuttleworth.
Users prefer selling platforms with a simple and easy process. Depop was unable to compete with the ease-of-use and wider appeal offered by competitors like Vinted and eBay. Depop’s value declined as competition increased.
Etsy focuses on its core marketplace
Etsy acquired Depop in a time of rapid expansion. It was then aiming to compete directly with online global retailers such as Amazon.
Etsy’s direction has since changed. It sold Elo7 in 2023 at a significant loss. Reverb, the music equipment resale website it acquired previously, will also be sold by the company. Etsy wants to focus on its primary marketplace which is specialized in niche and handmade products.
During the Covid 19 Pandemic, there was a strong increase in sales. As lockdowns forced people to stay at home, online shopping boomed. Demand slowed down in the following years. The competition also increased, particularly from Chinese platforms like Temu or Shein that offer cheap prices and quick shipping.
Deal Financial Impact
eBay announced its acquisition along with the financial results for 2025. The company’s revenue was $11.1bn in 2018, an 8 percent increase over the prior year. Investors reacted positively. Etsy shares rose by more than 15% in trading after-hours, while eBay gained more than 6%. Depop, according to Kruti Goyal of Etsy’s CEO, has grown into one of the most popular fashion resale platforms in the US. She said that she was confident the brand would grow under eBay ownership.
