Etsy sells vintage clothing marketplace Depop to eBay for $1.2B

Etsy is selling Depop, the second-hand clothing app popular with Gen Z and millennials, to eBay for $1.2 billion, the company said. he announced on the third. Etsy says the deal will allow it to focus on its marketplace.

The deal comes nearly five years later Etsy bought Depop for $1.62 billion, during which the used clothing programs were fame.

Founded in 2011, Depop is expected to generate approximately $1 billion in sales – the total value of goods sold through its platform – in 2025. In the US, the company saw approximately 60% annual growth. As of December 31, 2025, the marketplace had seven million buyers, nearly 90% of whom were under the age of 34, and over three million sellers.

“Depop has built a trusted, innovative and cutting-edge marketplace in the once-loved fashion industry, and we are confident that as part of eBay, Depop will be well positioned for long-term growth, benefiting from our growth, additional offerings, and operational capabilities,” said eBay CEO Jamie Iannone. Press release.

The move comes as Etsy has struggled to grow its business after the e-commerce boom, competing with marketplaces like Temu and Shein, as well as Amazon.

The company’s annual revenue is expected to grow 2.2% in 2024, down from the 7.1% growth reported in 2023. Etsy plans to release its 2025 earnings on Thursday.

“We’re excited that this allows us to focus on the most compelling opportunity we see in front of us: growing the Etsy marketplace in ways that matter most to buyers and sellers,” Etsy CEO Kruti Patel Goyal said in a press release. “We are proud of what the Depop team has built – a unique brand and product, based on clear goals and a strong team – to be one of the fastest growing marketplaces in the US. I am confident that Depop is well positioned for the next phase of growth as part of eBay.”

The auction is the latest in a series of Etsy acquisitions and auctions for online marketplaces. Depop’s sale of Etsy comes as the company has bought and sold other online marketplaces in recent years, including Brazilian e-commerce company Elo7 and music marketplace Reverb.

The deal is expected to close in the second quarter of this year.