EBAY BUYS DEPOP FROM ETSY FOR $1.2 BILLION IN CASH — Quick Facts
eBay acquired Depop from Etsy for $1.2 billion in cash, marking a major strategic pivot to capture Gen Z's $1 billion annual secondhand fashion market. The deal reflects a broader cultural shift where resale has become primary income and identity for younger consumers, with 90% of Depop's 7 million active buyers under 34 years old. eBay's bet is that owning Depop solves its brand perception problem with young shoppers, even though the secondhand apparel sector is forecast to grow 2-3x faster than new clothing through 2027.
Key Data Points
- eBay acquired Depop for $1.2 billion in cash from Etsy, which had paid $1.62 billion in 2020 and took a $420 million loss on the exit.
- Depop generated $1 billion in annual gross merchandise sales in 2025 with 60% year-over-year U.S. growth and 7 million active buyers (90% under age 34).
- The secondhand fashion market is forecast to grow 2-3 times faster than new clothing through 2027, driven by Gen Z financial constraints and sustainability values.
- 28% of Gen Z ages 18-25 cannot save money and 32% spend 50% of monthly income on rent, making secondhand fashion an economic necessity and not just a preference.
- From Q4 2024 to Q1 2025, Depop experienced a 12% brand equity lift among Gen Z adults, indicating cultural momentum beyond sales metrics.
Frequently Asked
- Why did eBay buy Depop for $1.2 billion?
- eBay needed access to Gen Z shoppers and cultural credibility in the $1 billion secondhand fashion market. While eBay dominates overall e-commerce, it is perceived as outdated by younger consumers. Depop's 7 million active buyers (90% under 34) and strong brand equity with Gen Z made it worth the premium, even though Etsy paid $1.62 billion for it five years earlier.
- How much did Etsy lose on the Depop sale?
- Etsy took a $420 million loss when it sold Depop to eBay for $1.2 billion, having originally purchased it for approximately $1.62 billion in 2020. This signals that Etsy could not profitably integrate Depop into its core marketplace strategy.
- Is secondhand fashion growing faster than new clothing?
- Yes. McKinsey and industry forecasts project the secondhand apparel market will grow 2-3 times faster than new clothing through 2027. This is driven by Gen Z's financial constraints (28% cannot save money, 32% spend 50% of income on rent) and sustainability values.
- Why do Gen Z use Depop and resale platforms?
- Gen Z use platforms like Depop for three reasons: decluttering (50%), sustainability alignment (33%), and extra income (56%). According to WGSN Barometer data, resale has become both a shopping behavior and an alternative income stream for younger consumers.
- What is Depop's current business size?
- Depop generated approximately $1 billion in annual gross merchandise sales in 2025, with nearly 60% year-over-year growth in the U.S. The platform has 7 million active buyers and over 3 million active sellers, making it one of the largest peer-to-peer fashion marketplaces.