eBay Snags Depop for $1.2 Billion to Capture Gen Z Fashion Market

eBay is officially making a massive power move to win over Gen Z. The e-commerce giant has reached a deal to buy Depop, the trendy secondhand fashion app, for $1.2 billion.

Etsy, which had owned the platform since 2021, confirmed the sale on Wednesday. This transition marks a new era for the resale community as Depop joins forces with one of the original pioneers of online auctions. “We’re thrilled to begin this next chapter with eBay, whose experience in the C2C fashion space and shared belief in people, opportunity, and a more sustainable future positions us to meaningfully accelerate our marketplace in the U.S. and beyond,” Peter Semple, Chief Executive officer of Depop, said in a statement.

The acquisition is a strategic play for eBay to stay relevant with younger shoppers. While Depop focuses on clothing and accessories, eBay sells everything from electronics to apparel, home goods, toys, and even auto parts. By bringing the fashion app into its portfolio, the veteran company, which marked its 30th anniversary in September, hopes that the acquisition will help it “reach a younger demographic across the expanding re-commerce landscape,” per a press release.

It’s a smart pivot for the company, especially considering that eBay did well in 2025, with its revenues rising to $11.1 billion, compared to the same time in 2024, according to the BBC.

The all-cash transaction is slated to wrap up by the second quarter of 2026. While Etsy purchased Depop five years ago for $1.6 billion to compete with retailers like Amazon, the new $1.2 billion price tag reflects a shifting market. Despite the lower valuation, Depop has become “one of the fastest-growing fashion resale marketplaces in the US,” Kruti Patel Goyal, chief executive of Etsy, said in the press release.

The goal is for the app to spark a major surge in vintage and used clothing sales across the board. As Semple noted, “This transaction is a testament to the significant growth we have delivered as we have evolved our product experience and strengthened our brand’s place in the world.”