Etsy has been rising at a slowed tempo in recent times. It purchased Depop for $1.6bn, and offered it at a loss.
eBay is buying second-hand style market Depop from Etsy in a bid to achieve a youthful, extra “fashion-forward” resale-savvy customer-base. The deal is valued at roughly $1.2bn, anticipated to shut in Q2 this 12 months.
A sleeper hit amongst youthful generations, Depop has round 7m energetic consumers – practically all Gen Zs and Millennials below the age of 34 – and greater than 3m energetic sellers. The platform recorded round $1bn in product sales in 2025, a 60pc year-over-year progress within the US.
Depop competitor ThredUp reported that the US second-hand attire market grew from $28bn in 2019 to $56bn simply final 12 months. Whereas different analysts place the worldwide second-hand style market at $210bn in 2025, anticipated to develop to greater than $580bn by 2035.
Second-hand style is gaining traction amongst bigger swathes of youthful shoppers on the lookout for extra inexpensive clothes. A 2025 evaluation of quick style costs discovered a mean rise of $17 throughout key classes of garments within the US, with jackets and outerwear costs rising by 24pc.
In the meantime, Enterprise Insider finds that the style business contributes to round 10pc of world carbon emissions yearly, led by manufacturers equivalent to Shein and Zara. For eBay, style gross sales represents an annual gross merchandise quantity of greater than $10bn.
Etsy bought Depop for $1.6bn in 2021. The identical 12 months, it purchased Brazilian on-line market Elo7 for $217m. In 2019, it bought music gear market Reverb. Since then, it has offered all three of them.
The 2005-found firm has been seeing slowed progress in recent times. Its year-over-year income grew by simply 2.2pc in 2024, down from 7.1pc in 2023.
Etsy chief government mentioned that the Depop sale permits the corporate to focus rising its core market. It plans to use the sale proceeds for normal company functions, continued share repurchases and funding in its core market.
“Depop has constructed a trusted, social-forward market with robust momentum within the pre-loved style class, and we’re assured that as a part of eBay, Depop shall be much more well-positioned for long-term progress, benefiting from our scale, complementary choices, and operational capabilities,” mentioned eBay chief Jamie Ianonne.
The corporate slashed 1,000 jobs in 2024, 9pc of its workforce on the time.
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