Ebay snaps up Depop from Etsy for $1.2 billion

By Kaycee Enerva February 19, 2026

Text Size

Ebay has acquired second-hand fashion marketplace Depop from Etsy for $1.2 billion, five years after Etsy purchased the business for $1.6 billion.

Depop is a mobile app that allows users to buy and sell second-hand clothing. As of December last year, the platform had 7 million active users, with nearly 90 per cent under the age of 35, and more than 3 million sellers.

The company says it has worked to differentiate itself by leaning into “re-commerce” and its role in the circular economy, emphasizing pre-owned, refurbished and authenticated goods, amid a challenging market.

Ebay said Depop has a “strong momentum in the pre-loved fashion category” and will help expand its reach towards the millenial and gen-z crowd.

“The younger generation is very focused on pre-loved apparel, driving sustainability, recycling things that they have in their closet, and this gives us an opportunity to really lean in with a focused experience in the acquisition of Depop,” CEO Jamie Ianonne told Reuters.

Following the transaction, Depop will leverage Ebay’s global scale and suite of capabilities, including financial services and shipping solutions. The company said the deal will also expand visibility of Depop’s inventory through cross-listing opportunities.

Depop is expected to retain its name, brand, platform and culture after the transaction closes.

Etsy CEO Kruti Patel Goyal said the sale positions Depop for its next phase of growth.

“We are proud of what the Depop team has built,” said Goyal. “I am confident that Depop is well-positioned for its next phase of growth as part of Ebay.”

Ebay sees GMV, a key metric showing the total value of goods sold on its platform, in the range of $21.5 billion to $21.9 billion for the first quarter, exceeding an estimate of $20.10 billion.

Neil Saunders, MD of GlobalData, said Ebay’s acquisition of Depop will bolster the marketplace’s hand in the resale fashion arena.

“While Ebay remains one of the largest e-commerce platforms and is a significant player in peer-to-peer and secondhand selling, it suffers from being seen as a more traditional marketplace that lacks some of the edge of newer upstarts,” he said. “This is especially so among younger buyers and sellers who automatically gravitate to commerce players that they see as having more of a vibe and a social dimension.”

Saunders said Depop delivers on these needs which is why it has strong penetration among younger cohorts. “It is also seen as being more fashion forward than Ebay and so attracts a larger share of high frequency buyers that are highly interested in apparel and accessories.”

However, to be sure of success with the acquisition, Ebay needs to ensure it allows Depop to remain a distinct entity with its own image and feel. “Ebay should neither try to change the brand position nor should it be tempted to expand Depop into categories and segments that do not sit naturally with the audience,” said Saunders.

“That said, at the back end, it makes sense for eBay to offer Depop the technology, investment, and infrastructure that it sometimes lacked when it was part of Etsy. In this sense, Depop is now part of a group that can support it more effectively.”

Q4 revenue beats estimates

The company reported revenue of $2.97 billion for the fourth quarter ended December 31, beating an estimate of $2.88 billion.

The Depop deal is expected to close in Ebay’s second quarter and would contribute one to two percentage points to total gross merchandise volume (GMV) growth year-over-year this year.