eBay to Acquire Gen Z-Focused Secondhand Marketplace Depop for $1.2B

The deal aims to help eBay capture a younger demographic as used clothing gains popularity.

Published on Feb. 23, 2026

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Online retailer eBay has agreed to purchase secondhand fashion marketplace Depop from Etsy for approximately $1.2 billion in cash. The acquisition is seen as an opportunity for eBay to expand its reach with younger consumers, as Depop's marketplace has 7 million active buyers, nearly 90% of whom are under the age of 34, and more than 3 million active sellers.

Why it matters

The deal reflects the growing popularity of secondhand clothing, which has become increasingly sought after by shoppers looking for unique, more affordable items that also help reduce waste. By acquiring Depop, eBay aims to better position itself to capture a larger share of the Gen Z market, which has shown strong interest in resale and sustainability.

The details

eBay, based in San Jose, California, said it intends to pay cash for Depop, which was founded in 2011 and was previously acquired by Etsy for $1.6 billion in 2021. Etsy, based in Brooklyn, New York, plans to use the proceeds for general corporate purposes, continued share repurchases, and investment in its core marketplace. The transaction has been unanimously approved by the boards of both eBay and Etsy and is expected to close in the second quarter of 2026.

  • eBay and Etsy announced the $1.2 billion deal on February 18, 2026.
  • The transaction is expected to close in the second quarter of 2026.

The players

eBay

An American multinational e-commerce corporation based in San Jose, California, that operates an online marketplace where people and businesses buy and sell a broad variety of goods and services.

Depop

A secondhand fashion marketplace founded in 2011 that is popular among Gen Z consumers, with 7 million active buyers and more than 3 million active sellers.

Etsy

An American e-commerce company focused on handmade or vintage items and craft supplies, based in Brooklyn, New York. Etsy acquired Depop in 2021 for $1.6 billion.

Jamie Iannone

The CEO of eBay.

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What they’re saying

“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 (Associated Press)

What’s next

The transaction is expected to close in the second quarter of 2026, pending regulatory approvals.

The takeaway

The acquisition of Depop by eBay reflects the growing demand for secondhand and sustainable fashion, particularly among younger consumers. By adding Depop's popular resale platform to its offerings, eBay aims to better position itself to capture a larger share of the Gen Z market and capitalize on the rising trend of circular fashion.