In a major consolidation of the resale market, eBay said Wednesday it will acquire the peer-to-peer secondhand fashion platform Depop from Etsy for $1.2 billion in cash. The deal, expected to close in the spring, marks a strategic pivot for eBay to capture a younger, social-driven audience.
For eBay, the acquisition is the latest move to carve out more space in the fashion category, such as through its Authenticity Guarantee programme, which uses physical inspection for luxury handbags, sneakers and watches. Beyond traditional resale, eBay has also moved into the circular economy via its 2023 investment in The Volte, an Australian-based clothing rental startup.
While eBay is easily the everything giant in online secondhand commerce, Depop offers a critical entry point into the Gen Z and Millennial demographics; nearly 90 percent of its 7 million active buyers are under the age of 34. “Depop’s social-forward marketplace perfectly complements our scale,” eBay CEO Jamie Iannone said in a statement.
The sale allows Etsy to return to its core mission after acquiring Depop in 2021. Under eBay, Depop will operate as a standalone brand but will integrate eBay’s backend infrastructure in shipping and financial services.
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