Etsy has officially sold the Depop app to eBay for $1.2 billion in an all-cash transaction. This acquisition is expected to be finalized by mid-year, allowing Depop to maintain its name and branding.
Impact on eBay’s Second-Hand Clothing Sales
eBay aims to enhance its presence in the fast-growing used clothing market through this purchase. According to eBay’s CEO, Jamie Ianonne, second-hand clothing is one of the company’s “fastest-growing” categories.
Financial Highlights
This announcement coincided with eBay’s release of its 2025 financial results. The company reported revenue growth of 8%, reaching $11.1 billion compared to the previous year.
- Etsy’s share price increased by more than 15% in post-market trading.
- eBay’s stock rose nearly 6.5% following the news.
Depop’s User Demographics
Depop boasts a vibrant community with seven million active buyers, nearly 90% of whom are under 34 years old. In addition, the platform has over three million active sellers, making it a significant player in the fashion resale market.
Growth Potential
Kruti Patel Goyal, CEO of Etsy, expressed confidence in Depop’s future. She stated that the platform is well-positioned for further growth as part of eBay. Depop has been recognized as one of the fastest-growing fashion resale marketplaces in the United States.
This acquisition presents a strategic opportunity for eBay to solidify its position in the second-hand market. The continued branding of Depop highlights eBay’s commitment to maintaining its unique identity while expanding its offerings in the fashion sector.
