Etsy Sells Secondhand Clothing Marketplace Depop to eBay for $1.2B

The deal comes nearly five years after Etsy purchased Depop for $1.62 billion, at a time when secondhand clothing apps were gaining traction during the pandemic.

Published on Feb. 23, 2026

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Etsy is selling its secondhand clothing app Depop to eBay for $1.2 billion in cash. Depop, which Etsy acquired for $1.62 billion in 2021, is a popular marketplace with Gen Z and millennial shoppers. The sale will allow Etsy to focus on its own core marketplace.

Why it matters

The sale of Depop is part of a pattern for Etsy, which has acquired and then divested several niche online marketplaces in recent years. The move comes as Etsy has struggled to maintain the pandemic-fueled e-commerce boom, facing competition from fast-fashion players like Temu and Shein.

The details

Depop generated around $1 billion in gross merchandise sales in 2025 and had nearly 7 million active buyers, 90% of whom were under 34 years old. eBay CEO Jamie Iannone said the acquisition will allow Depop to be "even more well-positioned for long-term growth" by leveraging eBay's scale and capabilities. Etsy CEO Kruti Patel Goyal said the sale allows Etsy to "focus exclusively" on growing its own core marketplace.

  • Etsy acquired Depop for $1.62 billion in 2021.
  • Depop generated around $1 billion in gross merchandise sales in 2025.
  • The deal is expected to close in the second quarter of 2026.

The players

Etsy

An e-commerce company focused on handmade or vintage items and craft supplies.

Depop

A secondhand clothing marketplace popular with Gen Z and millennial shoppers.

eBay

An e-commerce company that operates an online marketplace where people and businesses buy and sell a broad variety of goods and services worldwide.

Jamie Iannone

The CEO of eBay.

Kruti Patel Goyal

The CEO of Etsy.

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What they’re saying

“Depop has built a trusted, social-forward marketplace with strong momentum in the pre-loved fashion category, and we are confident that as part of eBay, Depop will be even more well-positioned for long-term growth, benefiting from our scale, complementary offerings, and operational capabilities.”

— Jamie Iannone, CEO, eBay (Press release)

“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. We are proud of what the Depop team has built – a truly differentiated brand and product, grounded in clear purpose and strong community – becoming one of the fastest-growing fashion resale marketplaces in the U.S. I am confident that Depop is well-positioned for its next phase of growth as part of eBay.”

— Kruti Patel Goyal, CEO, Etsy (Press release)

What’s next

The deal is expected to close in the second quarter of 2026.

The takeaway

Etsy's sale of Depop is part of a broader strategy to focus on its core marketplace, as it faces increasing competition in the e-commerce space. The move highlights the challenges traditional e-commerce companies face in maintaining growth and relevance in a rapidly evolving industry.