eBay Acquires Depop: Targeting Younger Users in the Secondhand Clothing Market
eBay has made a significant move to appeal to younger users by acquiring the popular secondhand clothing app Depop for $1.2 billion. The pandemic saw a surge in the popularity of secondhand clothing apps, with young shoppers looking to buy or sell used outfits to save money or make extra cash. Etsy, known for its platform that connects small artisans and designers with consumers, had previously acquired Depop for $1.6 billion in 2021 but has now decided to sell it to eBay to refocus on its core business.
Depop has gained a loyal following among Gen Z users, with around 90 percent of its 7 million active buyers being under the age of 34. Despite its sale at a discounted price, Depop has shown strong growth, reporting $1 billion in gross merchandise sales in 2025 and a 60 percent increase in U.S.-based sales from the previous year. Etsy plans to use a portion of the proceeds from the sale for share repurchases to benefit its shareholders.
The acquisition of Depop by eBay is seen as a strategic move to tap into the growing secondhand apparel market, which is expected to outpace the market for new products in the coming years. eBay's CEO, Jamie Iannone, highlighted the value of Depop's popularity with millennials, Gen Z, and young women, demographics that are currently underrepresented on eBay's platform. The transaction is set to close in the second quarter of this year, signaling eBay's commitment to expanding its marketplace and attracting a younger audience.
In conclusion, eBay's acquisition of Depop for $1.2 billion underscores the company's efforts to target younger users and capitalize on the growing trend of secondhand clothing apps. The sale of Depop by Etsy allows the company to refocus on its core marketplace business, while eBay gains access to a new demographic and a thriving market segment. The secondhand apparel market's projected growth presents a lucrative opportunity for eBay to expand its offerings and appeal to a broader audience.