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eBay Buys Depop for $1.2B, Fashion Marketplace Expands

Etsy has sold the popular second-hand clothing app Depop to eBay for $1.2 billion in an all-cash deal, according to multiple sources. The announcement, made on Wednesday, marks a significant shift in the re-commerce landscape and comes five years after Etsy acquired Depop for $1.62 billion.

The deal aims to help eBay, a company more than 30 years old, "reach a younger demographic across the expanding re-commerce landscape," as stated by sources. Depop, founded in the UK, has gained immense popularity among Gen Z shoppers seeking sustainable and low-cost alternatives to traditional retailers. The app generated approximately $1 billion in gross merchandise sales in 2025 and saw nearly 60% year-over-year growth in the U.S., according to TechCrunch. As of December 31, 2025, Depop had seven million active buyers, nearly 90% of whom were under 34, and over three million active sellers.

Etsy stated that the sale would allow it to focus on its own marketplace. The transaction's completion is expected soon.

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