eBay to Buy Depop, The Second-Hand Fashion App for $1.2bn

Depop, the second-hand fashion app that has become a go-to platform for many Gen Z shoppers, is being acquired by eBay in a deal valuing the business at $1.2bn (£890m). The transaction marks a quick turnaround for Etsy, which bought the UK-founded resale marketplace five years ago for $1.6bn and is now exiting at a lower price.

eBay says the purchase is designed to help the company refresh its audience mix and strengthen its position in a rapidly expanding recommerce market. The company believes the deal will help it “reach a younger demographic across the expanding re-commerce landscape”—an increasingly important goal as younger consumers shift more of their spending toward pre-owned clothing and footwear for affordability and sustainability.

That same consumer shift has also intensified platform competition. While Depop was among the earlier breakout names in app-based fashion resale, its market position has been challenged by rivals such as Vinted, which have attracted large seller communities through international expansion and platform upgrades.

Retail analyst Catherine Shuttleworth said the competitive rise of Vinted has weighed on Depop’s valuation. “The mass appeal of Vinted has had an impact on Depop’s value,” she said. “As Vinted made investments into global markets and improved its tech platform, more sellers gravitated towards it.”

Shuttleworth added that users tend to consolidate around the platforms that feel simplest and most accessible—suggesting Depop did not offer the same “frictionless” and “universal” appeal associated with larger players such as eBay and Vinted.

The all-cash acquisition is expected to complete by mid-year, with Depop continuing to operate under its existing brand identity. eBay CEO Jamie Iannone said the acquisition should accelerate growth in second-hand fashion, which he described as one of eBay’s “fastest-growing” categories.

The deal was announced alongside eBay’s 2025 financial results, which showed revenue rising 8% year on year to $11.1bn. In after-hours trading, Etsy shares gained more than 15%, while eBay’s stock rose by nearly 6.5%.

Etsy said Depop has around seven million active buyers, with close to 90% under the age of 34, and more than three million active sellers. Etsy CEO Kruti Patel Goyal said Depop has become “one of the fastest-growing fashion resale marketplaces in the US.” “I am confident that Depop is well-positioned for its next phase of growth as part of eBay,” she added.

If completed as planned, the move will formalise the headline outcome for the recommerce market: eBay to buy Depop and use the platform to deepen its reach with younger shoppers, while Etsy steps away from a once high-profile resale bet.