Etsy Exits Depop: Is Resale’s Future with eBay?

Hustler Words – In a significant strategic maneuver within the e-commerce landscape, Etsy has announced its decision to divest Depop, its popular secondhand fashion marketplace, to eBay for a cash consideration of $1.2 billion. This transaction, revealed on Wednesday, marks a pivotal shift for Etsy as it aims to sharpen its focus on its foundational marketplace operations.

The sale comes nearly five years after Etsy initially acquired Depop for a higher sum of $1.62 billion, a period when the burgeoning market for pre-loved apparel applications was experiencing rapid expansion. The current divestment suggests a re-evaluation of portfolio priorities by Etsy, especially in light of the competitive pressures and evolving market dynamics.

Depop, established in 2011, has carved out a distinct niche, particularly resonating with Gen Z and millennial consumers. The platform demonstrated robust performance, reporting approximately $1 billion in gross merchandise sales (GMS) in 2025. Its U.S. operations were a significant growth engine, achieving nearly 60% year-over-year expansion. As of December 31, 2025, Depop boasted a substantial user base of seven million active buyers, with a striking 90% of them under the age of 34, alongside more than three million active sellers.

eBay’s CEO, Jamie Iannone, expressed optimism regarding the acquisition. In a press statement, Iannone highlighted Depop’s success in cultivating a "trusted, social-forward marketplace" with considerable momentum in the pre-loved fashion sector. He articulated confidence that Depop, under eBay’s stewardship, would be "even more well-positioned for long-term growth," leveraging eBay’s extensive scale, complementary offerings, and operational prowess.

For Etsy, this divestiture unfolds against a backdrop of decelerating growth following the e-commerce surge witnessed during the pandemic era. The company has faced intensifying competition from aggressive marketplaces such as Temu and Shein, in addition to the omnipresent challenge posed by Amazon. Etsy’s year-over-year revenue growth slowed to 2.2% in 2024, a notable decline from the 7.1% growth recorded in 2023. The company is poised to release its 2025 earnings report on Thursday.

Etsy CEO Kruti Patel Goyal underscored the strategic rationale behind the sale. "We are excited that this transaction allows us to focus exclusively on the compelling opportunity we see in front of us: to grow the Etsy marketplace in ways that matter most to our buyers and sellers," Goyal stated. She also lauded the Depop team for building a "truly differentiated brand and product, grounded in clear purpose and strong community," acknowledging its status as one of the fastest-growing fashion resale marketplaces in the U.S.

This transaction aligns with a discernible pattern in Etsy’s recent corporate strategy: the acquisition and subsequent divestment of specialized online marketplaces. In previous years, Etsy has similarly offloaded other niche platforms, including the Brazilian e-commerce firm Elo7 and the musical instrument marketplace Reverb.

The deal is anticipated to reach its conclusion in the second quarter of the current year, marking a new chapter for Depop under eBay’s expansive digital ecosystem.