eBay snaps up Gen Z fashion app Depop in $1.2 billion deal

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Online marketplace giant eBay is buying second-hand clothing app Depop for $1.2 billion (£890 million).

The cash deal marks a significant shift in the competitive “pre-loved” fashion market.

Etsy is offloading the London-founded platform just five years after purchasing it. That 2021 deal was worth $1.6 billion, meaning Etsy is selling at a substantial loss.

The sale follows Etsy’s recent trend of shedding subsidiaries such as Reverb and Elo7 to focus on its core handmade goods business.

Why now?

eBay is entering its fourth decade and needs to stay relevant. While it is a household name, it has struggled to capture the “cool factor” of younger shoppers. Depop provides an instant solution. Nearly 90% of Depop’s seven million active buyers are under the age of 34.

The “re-commerce” sector is also more crowded than ever. Apps like Vinted have seen massive growth by offering lower fees and a smoother user experience. By acquiring Depop, eBay is buying its way back into the top tier of fashion resale before it loses more ground to these savvy rivals.

What does it mean for end users?

For the millions of Gen Z users on Depop, the immediate impact may be small. eBay has confirmed that Depop will keep its own name, branding, and distinct culture. It will operate as a standalone business unit rather than being folded directly into the main eBay site.

However, behind the scenes, major changes are coming. Users can expect better shipping options and a more robust payment system. eBay also plans to introduce its “Authenticity Guarantee” to the app. This could help combat the long-standing issue of counterfeit designer goods on the platform.

Sellers may eventually see their items “cross-listed” on both platforms. This would give their clothes much more visibility. On the flip side, some users are understandably worried about corporate consolidation.

They fear that Depop’s quirky, community-driven spirit might be watered down by eBay’s more corporate approach.

The deal is expected to close by the middle of 2026. Until then, both platforms will continue to operate separately.

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