eBay Acquires Depop, a Secondhand Fashion App, from Etsy for $1.2B

Mirror Review

February 19, 2026

eBay is reclaiming its place in the fashion world by acquiring the Gen-Z favorite secondhand app, Depop, from Etsy for $1.2 billion.

Depop is the go-to mobile marketplace for younger shoppers who value style and sustainability.

A major change in the resale world is highlighted as eBay acquires Depop and the original e-commerce giant connects with the creators of today’s circular fashion trends.

Why eBay Bought Depop for $1.2 Billion

The primary reason eBay acquires Depop for $1.2 billion is to reach a younger audience.

Depop boasts over 7 million active buyers, and a staggering 90% of them are under the age of 34.

While eBay has traditionally appealed to collectors and older demographics, it needs a direct pipeline to Gen Z.

Through the eBay acquisition of Depop from Etsy, the company gains access to:

Rapid Growth: Depop generated nearly $1 billion in gross merchandise sales in 2025.
Fashion Authority: Fashion is already a massive category for eBay, worth over $10 billion in annual volume.
Cultural Credibility: Depop has a unique, social-forward culture that is difficult to build from scratch.

“This acquisition presents an opportunity to reach a younger demographic across the expanding recommerce landscape,” eBay CEO Jamie Iannone shared in a statement.

Etsy Refocuses on its Core Marketplace

For Etsy, this sale is about simplification.

After buying Depop for $1.6 billion in 2021, Etsy is now selling it at a lower price to streamline its business.

This move follows Etsy’s recent sale of Reverb, a musical instrument site, as they double down on their primary “handmade and unique” brand.

Metric	Details
Sale Price	$1.2 Billion in Cash
Expected Close	Second Quarter of 2026
Active Buyers	7 Million
Active Sellers	3 Million+

Etsy CEO Kruti Patel Goyal noted that eBay acquiring Depop allows her company to focus exclusively on growing the Etsy marketplace in ways that matter most to their core buyers.

What Changes for Depop Users?

The good news for fans is that Depop will keep its name, brand, and London-based headquarters. However, eBay buying Depop will likely bring new tools to the platform.

eBay plans to introduce its advanced shipping solutions and “Authenticity Guarantee” to Depop sellers.

There is also talk of cross-listing opportunities. This means a seller on Depop could potentially have their items show up on eBay too, giving their clothes a massive global audience.

While some users on Reddit are curious if fee structures will change, both companies are focused on making the transition smooth for the community.

What Happens Next? Timeline and Regulatory Hurdles

The road to finalization involves several critical steps before eBay acquires Depop officially. Both companies have laid out a clear path, but external factors could still shift the timeline.

Antitrust Review: Regulators will closely examine the deal to ensure it does not create an unfair monopoly in the secondhand fashion market. Because both eBay and Depop are major players in the same industry, this standard review is a top priority.

Compliance Monitoring: eBay is currently under an enhanced compliance program due to a past deferred prosecution agreement. This means an independent monitor may need to sign off on the deal to ensure everything is above board.

Termination Clauses: If the deal fails due to regulatory blocks, eBay must pay Etsy a $90 million termination fee. In some specific cases, this fee could even rise by another $70 million.

Final Closing Date: While the goal is to finish by the second quarter of 2026, the legal agreement allows for extensions until November 2026, or even February 2027 if necessary.

Once these hurdles are cleared, Depop will officially join the eBay family while keeping its unique London roots and Gen Z spirit intact.