#United States #San Jose #Etsy #eBay #Depop

eBay's Strategic Move: Acquiring Depop

In a bold strategic maneuver, eBay Inc. has announced its acquisition of Depop, a leading consumer-to-consumer fashion marketplace, from Etsy for approximately $1.2 billion. This move is designed to bolster eBay's consumer-to-consumer (C2C) value proposition by tapping into the growing market of secondhand fashion that resonates heavily with younger consumers, especially Gen Z and Millennials.

Understanding the Acquisition

The deal, which has garnered significant attention in the marketplace, allows eBay to expand its reach into a vibrant segment of the ecommerce landscape. Depop is notable for its mobile-first approach and its strong community engagement, boasting annual gross merchandise sales (GMS) of around $1 billion as of 2025 with impressive year-over-year growth. Nearly 60% of Depop’s customers are from the U.S., and they have achieved a substantial increase in active users—a clear sign of the brand's strong momentum.

Jamie Ianonne, the CEO of eBay, believes that Depop’s success in the resale market can be further amplified through eBay's vast resources and operational capabilities. The addition of Depop into eBay's portfolio is not only about enhancing the product offering but also about connecting with a demographic that is evolving the fashion landscape toward sustainability and circular consumption.

What Depop Brings to eBay

Depop has cultivated a loyal customer base with its focus on secondhand clothing, making it a perfect fit for eBay's existing marketplace, which generates more than $10 billion annually from fashion sales alone. The integration of Depop into eBay is expected to deepen connections with new, fashion-forward consumers while enhancing the platform's approach to sustainability.

Indeed, fashion is no longer just about new items; the fashion resale market is growing rapidly, which presents an excellent opportunity for eBay to capture this dynamic shift in consumer behavior. With an almost 90% under-34 demographic among its users, Depop's community-driven platform aligns seamlessly with eBay’s goal to attract a younger audience who values authenticity and sustainability.

Etsy's New Focus Following the Sale

Etsy's decision to sell Depop reflects its strategy to concentrate solely on its core marketplace. Etsy’s CEO, Kruti Patel Goyal, viewed this move as a chance to channel resources into expanding its own offerings. Nevertheless, the sale underscores a promising path forward for both companies. Etsy will leverage the proceeds for share repurchase and to bolster its marketplace, further highlighting its commitment to sustainable growth.

Future Outlook

Once the acquisition is finalized, expected by mid-2026, Depop will retain its brand identity, culture, and operational autonomy, allowing it to continue developing within eBay’s expansive framework. This preservation is crucial as the youthful ethos of Depop is part of what has made it successful.

Overall, eBay's acquisition of Depop represents a significant leap into the future of retail, one where sustainability, community, and consumer engagement lead the way. With the backing of eBay’s extensive capabilities—ranging from shipping solutions to robust marketing—Depop is well-positioned to thrive, ensuring that both platforms benefit mutually from this strategic merger.

As the transaction nears its completion, it will certainly be interesting to see how this union influences the evolving e-commerce landscape, particularly for fashion and resale markets. With eBay aiming to amplify Depop’s unique inventory while enhancing its buyer and seller experiences, the stage is set for a new chapter in e-commerce where community and sustainability reign supreme.

eBay is poised not just to capitalize on a burgeoning market segment but also to drive the trend towards circular fashion, reflecting a new ethos in consumer habits where value comes from what already exists rather than what is newly produced.