eBay has agreed to acquire London-founded resale platform Depop from Etsy for $1.2bn (£890m) in cash, marking a move to strengthen its position in the fast-growing secondhand fashion market and accelerate its appeal among younger consumers.

The transaction, unanimously approved by both boards, is expected to close in the second quarter of this year.

The deal comes five years after Etsy acquired Depop for $1.6bn (£1.18bn) as part of an ambitious ‘House of Brands’ strategy designed to diversify beyond its core handmade and craft marketplace.

For retailers watching the evolution of recommerce, the deal stresses the strategic importance of resale, social commerce mechanics and Gen Z engagement, three forces reshaping the competitive landscape.

As of 31 December 2025, Depop’s marketplace had seven million active buyers and more than three million active sellers. Crucially, nearly 90 per cent of its buyers are under the age of 34, a demographic many established retailers and marketplaces are struggling to capture at scale.

In announcing the deal, eBay CEO Jamie lannone said the acquisition presents an opportunity to deepen the company’s relationship with younger shoppers.

“Depop has built a trusted, social-forward marketplace with strong momentum in the pre-loved fashion category,” he said. “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.”

For eBay, which has spent the past several years repositioning itself as a focused, category-led marketplace, the move strengthens its authority in pre-loved fashion, an area that continues to outperform wider discretionary retail.

Younger shoppers in particular are prioritising affordability, individuality and sustainability. Many actively seek unique items that differentiate them from mass-market fashion, while also avoiding the environmental impact associated with fast fashion.

Depop’s model, being highly visual, community-driven and social-first, differs from traditional marketplace dynamics. It blends elements of Instagram-style discovery with peer-to-peer selling, enabling users to curate personal storefronts and build followings.

That culture has proved especially resonant with Gen Z.

Depop, founded in the UK in 2011, will retain its name, brand, platform and culture following the acquisition, the companies said.

Peter Semple, CEO of Depop, described the transaction as “a testament to the significant growth we have delivered”, adding that the next phase under eBay ownership offers further opportunity to scale.

Maintaining brand autonomy will be critical. Depop’s appeal lies in its community credibility. Any perception of over-integration or corporate dilution could risk alienating its core audience.

eBay’s leadership appears aware of this dynamic. Rather than subsuming Depop into its primary marketplace, the intention is to allow it to operate as a distinct brand while benefiting from eBay’s operational infrastructure, payments capability and global reach.

At its core, this deal is about generational transition.

Retail’s centre of gravity is shifting towards younger consumers who prioritise value, sustainability and community-led discovery. Marketplaces that fail to reflect those priorities risk long-term irrelevance.

eBay’s bet is that Depop provides a culturally fluent gateway into that future.

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