eBay completes $1.4B acquisition of Depop from Etsy

What's the deal? eBay has completed its acquisition of secondhand fashion marketplace Depop from Etsy, the companies confirmed on 30 July 2026. The final purchase price came to approximately $1.4B in cash — the $1.2B headline figure plus around $200M of net purchase-price adjustments and interest. The deal was first announced in February 2026.

Etsy bought Depop in 2021 for $1.63 billion at the height of the pandemic-era ecommerce boom. It has now sold the platform at a discount as it refocuses on its core marketplace.

Depop has built a strong following among younger users, with about 90% of its seven million active buyers under 34. The platform generated $1 billion in gross merchandise sales in 2025 and grew US sales by 60% year over year.

Why now? Etsy’s revenue growth has slowed sharply, rising 2.2% in 2024 compared with 7.1% the year before. The company has been unwinding a multiyear acquisition spree and recently sold other non-core assets.

Chief executive Kruti Patel GoyalDealroom has a profile for this one. Try Dealroom → said the sale would allow Etsy to focus exclusively on growing its main marketplace. The company plans to use proceeds for share repurchases, platform investment, and general corporate purposes.

For eBay, the deal strengthens its position in resale and gives it access to younger shoppers, particularly Gen Z and millennial women — groups it sees as underrepresented on its platform.

What could go wrong? Depop’s sale price underscores the risk of overpaying at market peaks. Integrating a culturally distinct, youth-focused platform into a 30-year-old marketplace may also pose brand and operational challenges.

The resale market is competitive, with players such as Vinted, ThredUp, and Poshmark vying for share. Sustaining growth among younger consumers will require continued product and community investment.

The signal: Large ecommerce platforms are doubling down on resale as growth shifts from new goods to secondhand. McKinsey estimates the secondhand apparel market will grow two to three times faster than new clothing through 2027.

For Etsy, the transaction marks a return to focus after diversification efforts. For eBay, the $1.4 billion bet signals confidence that fashion resale — and younger users — are central to its next chapter.

Sources:
eBay (completion)
Etsy (completion)
eBay (announcement)
Depop
Etsy (announcement)
BBC
Forbes
TechCrunch
The Wall Street Journal

Image source:
Cosmopolitan

J.V.