EBay to Acquire Depop in $1.2B Gen-Z Fashion Push
America ı By Rachel Moore
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In a move aimed squarely at the wardrobes — and wallets — of younger shoppers, EBay to acquire Depop is the headline shaking up the online resale market.
Freshfields LLP is advising eBay Inc. on its planned $1.2 billion all-cash purchase of fast-rising mobile fashion resale platform Depop from Etsy Inc., which is being guided by Fenwick & West LLP.
The deal, unanimously approved by both companies’ boards, is expected to close in the second quarter of 2026, pending regulatory clearances and customary closing conditions, the companies said Wednesday.
A Strategic Bet on Youth and Resale
EBay plans to finance the acquisition using cash on hand. Etsy, meanwhile, said it intends to deploy the proceeds for general corporate purposes, share repurchases and investments in its core marketplace operations.
Depop has carved out a powerful niche among Generation Z and millennial consumers, turning secondhand fashion into a social marketplace phenomenon. In 2025 alone, the platform recorded roughly $1 billion in gross merchandise sales, with nearly 60% growth in the United States.
The numbers reveal a demographic engine humming at full speed: approximately 7 million active buyers — nearly 90% of them under age 34 — and more than 3 million active sellers.
“Depop has built a trusted, social-forward marketplace with strong momentum in the pre-loved fashion category, and we are confident that as part of eBay, Depop will be even more well-positioned for long-term growth,” eBay CEO Jamie Iannone said in a statement.
Fashion as a Growth Engine
For eBay, fashion is not just fabric — it is fuel. The category generated more than $10 billion in annual gross merchandise volume for the company and ranked among its fastest-growing segments in 2025.
Iannone said the acquisition will help eBay deepen its connection with younger buyers while harnessing its global infrastructure, shipping capabilities and services such as its Authenticity Guarantee.
Depop will continue operating under its existing brand, platform and culture, according to the announcement — a nod to the platform’s distinctive identity and loyal user base.
Depop CEO Peter Semple said joining eBay would accelerate the company’s expansion in the United States and internationally. He described the transaction as “a testament to the significant growth we have delivered as we have evolved our product experience and strengthened our brand's place in the world.”
Etsy CEO Kruti Patel Goyal said the divestiture enables Etsy to refocus on its core marketplace while ensuring “a positive next step for all involved.”
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