eBay buys second-hand clothing app Depop for $1.2bn

Source: BBC Technology

Depop acquisition by eBay

Depop, the second‑hand clothing app that has skyrocketed in popularity among Gen Z shoppers, is being sold to eBay for $1.2 bn (£890 m).

Etsy, the online platform that bought Depop in 2021 for $1.6 bn, is offloading the business just five years later. eBay hopes the deal will help the more‑than‑30‑year‑old auction firm “reach a younger demographic across the expanding re‑commerce landscape”.

Market context

Apps that allow people to buy and sell used or “pre‑loved” garments and footwear have grown in use in recent years as young consumers seek sustainable, low‑cost alternatives to traditional retailers.

• Nearly 90 % of Depop’s seven million active buyers are under the age of 34 (according to Etsy).
• The platform also has more than three million active sellers.

Depop has become “one of the fastest‑growing fashion resale marketplaces in the US”, said Kruti Patel Goyal, chief executive of Etsy.

“I am confident that Depop is well‑positioned for its next phase of growth as part of eBay,” Goyal added.

Background

Etsy acquired Depop in 2021 as part of a series of acquisitions aimed at competing with rivals like Amazon. Since then, Etsy has pulled back from many of those deals. Following the announcement of the sale, Etsy’s share price rose by 15 % in after‑hours trading.