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The online retail giant eBay has agreed to acquire the British fashion resale app Depop from Etsy for $1.2bn (£890m) in cash, as the company steps up efforts to attract younger, style-conscious consumers.
The deal underlines the continued rise of secondhand marketplaces, particularly among Gen Z shoppers seeking affordable and more sustainable alternatives to high street brands. Born between 1997 and 2012, this demographic now accounts for the majority of Depop's users.
Etsy, which bought Depop in 2021 for $1.6bn as part of a wider expansion drive, is selling the business at a $400m loss. The US-based marketplace had aimed to build a "House of Brands" to compete more directly with rivals including Amazon, but has since retreated from several acquisitions to refocus on its core handmade and craft marketplace.
Depop, founded in the UK and headquartered in London, will retain its name, brand and platform following the acquisition. The all-cash deal, approved by both boards, is expected to complete in the second quarter of the year, subject to regulatory clearance.
With seven million active buyers, nearly 90% of whom are under 34, and more than three million active sellers, Depop has become one of the fastest-growing resale platforms in the US. It recorded gross merchandise sales of around $1bn in 2025, with US growth nearing 60% year on year.
eBay's chief executive, Jamie Iannone, said the purchase would deepen the company's reach among younger shoppers and strengthen its position in recommerce, one of its fastest-growing categories.
The move also comes amid intensifying competition from platforms such as Vinted, which has expanded aggressively across Europe and the US, challenging both Depop and eBay for fashion resale dominance.
Shares in Etsy jumped more than 15% in after-hours trading following the announcement, while eBay's stock rose about 7%, as investors welcomed the strategic reshuffle.
