Etsy sells Depop to eBay for $1.2 billion

Etsy announced on Wednesday that it is selling Depop, a secondhand clothing marketplace, to eBay for $1.2 billion in cash. The transaction is expected to close in the second quarter of this year. The deal comes nearly five years after Etsy acquired Depop for $1.62 billion, at a time when secondhand clothing apps were gaining in popularity.

Founded in 2011, Depop has maintained strong operational metrics since its acquisition. In 2025, the platform generated approximately $1 billion in gross merchandise sales—defined as the total value of goods sold through the platform. In the U.S., Depop recorded nearly 60% year-over-year growth. As of December 31, 2025, the marketplace had seven million active buyers, nearly 90% of whom were under 34, and more than three million active sellers.

The sale of Depop is the latest in a pattern of Etsy acquiring and then divesting niche online marketplaces. In recent years, Etsy has purchased and subsequently sold other niche platforms, including the Brazilian e-commerce company Elo7 and the musical instrument marketplace Reverb. This retreat comes as Etsy struggles to grow its business after the pandemic-era e-commerce boom, facing intense competition from Amazon, Temu, and Shein. The company’s financial performance reflects these headwinds:

• Etsy’s year-over-year revenue grew 2.2% in 2024.
• This is down from the 7.1% revenue growth reported in 2023.

The acquisition aligns with different strategic priorities for both companies. eBay CEO Jamie Iannone noted that Depop has built a trusted, social-forward marketplace with strong momentum in the pre-loved fashion category, stating that the platform will benefit from eBay’s scale, complementary offerings, and operational capabilities. Meanwhile, Etsy is narrowing its corporate focus. “We are excited that this transaction allows us to focus exclusively on the compelling opportunity we see in front of us: to grow the Etsy marketplace in ways that matter most to our buyers and sellers,” said Etsy CEO Kruti Patel Goyal. Goyal also expressed confidence in Depop’s future, describing it as a differentiated brand and product that has become one of the fastest-growing fashion resale marketplaces in the U.S.

Why it matters

Etsy is retreating from its strategy of acquiring niche marketplaces as it faces slowing growth and intense competition from e-commerce competitors like Temu and Amazon.