eBay and Etsy have signed a joint deal to buy London-headquartered consumer-to-consumer (C2C) fashion marketplace Depop for $1.2 billion in cash.

eBay said the move would support its C2C strategy and deepen its reach with a younger market, with nearly 90 per cent of the mobile-first marketplace's seven million active buyers under the age of 34.

The American multinational said that Depop – which is expected to retain its name, brand, and platform – will benefit from its global scale, with expanded visibility of its inventory through methods such as cross-listing to drive further growth.

As part of the announcement, Etsy said that it plans to focus "exclusively" on driving sustainable growth for its core marketplace.

The deal is currently expected to close in the second quarter of 2026.

“Depop has built a trusted, social-forward marketplace with strong momentum in the pre-loved fashion category, and 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,” said Jamie Ianonne, chief executive, eBay.

He went on to say that the acquisition presents an opportunity to advance one of its newest and fastest-growing focus categories, enabling the company to reach a younger demographic across the "expanding recommerce landscape."

“We are excited that this transaction allows us to focus exclusively on the compelling opportunity we see in front of us: to grow the Etsy marketplace in ways that matter most to our buyers and sellers,” said Kruti Patel Goyal, chief executive, Etsy. “We believe this transaction is a great outcome for Etsy’s shareholders, and a positive next step for all involved."

Generated by its more than three million active sellers, Depop recorded annual gross merchandise sales (GMS) of approximately $1 billion in 2025, including nearly six per cent year-on-year growth in the US.

Peter Semple, chief executive of Depop said: “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 US and beyond. 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. We’re very grateful to Kruti and the Etsy team for their partnership in advancing Depop’s business and mission to make fashion circular.”

---