Depop Sold To eBay In Strategic Move To Attract Younger Consumers

In a significant shift within the online fashion marketplace, eBay has agreed to acquire the British vintage fashion app Depop for approximately £1.2 billion. This sale occurs at a 25 per cent discount compared to the price paid by Etsy in 2021. The move aligns with eBay’s strategy to capture a younger demographic, particularly appealing to the Gen Z market.

Founded in London in 2011, Depop gained popularity among millennials and Gen Z consumers as they sought sustainable and competitively priced second-hand fashion. As of late last year, the platform boasted around seven million active users, nearly 90 per cent of whom were under the age of 34. The acquisition marks a vital step for eBay as it endeavours to enhance its presence in an increasingly competitive market.

eBay Chief Executive Jamie Iannone expressed confidence in Depop’s potential for long-term growth, emphasising that the acquisition would leverage eBay’s scale and operational capabilities. Analysts have noted that while this acquisition opens doors for expansion, it also serves as a defensive move against strong competition from other platforms, notably Vinted.

Simon Beckerman, the Italian entrepreneur who founded Depop, originated the idea while working at the fashion magazine PIG. He is said to have realised a substantial financial gain when the business was sold to Etsy. Etsy’s Chief Executive Kruti Patel Goyal described the sale as a favourable outcome for shareholders, reflecting its commitment to focusing on its core business areas.

The deal is predicted to close in the second quarter of 2026, pending regulatory approvals. Depop is expected to retain its brand identity and cultural essence under eBay’s ownership, aiming to enhance its position in the ever-evolving landscape of fashion resale.

This transaction illustrates the substantial growth Depop has experienced and the changing dynamics within the global online marketplace, particularly regarding second-hand fashion.