eBay has confirmed that it will be acquiring Depop from Etsy in a cash deal worth $1.2 billion. This acquisition follows Etsy's own purchase of Depop five years ago for $1.6 billion. The deal emphasizes the increasing consumer interest in used clothing, which is seen as a more affordable and sustainable alternative to buying from traditional retailers. The transaction is expected to close by the middle of 2026.

Depop, which was established in the UK in 2011, has carved a niche for itself in the second-hand fashion market, boasting three million active sellers and seven million active buyers by the end of last year, with a notable demographic connection as nearly 90% of its users are under the age of 34. eBay's decision to acquire Depop underlines its intention to strengthen its presence in the sustainable fashion segment.

As the fashion industry faces increasing scrutiny over environmental concerns, the acquisition of Depop represents a strategic move by eBay to capture a growing market segment. The retention of Depop's branding and platform post-acquisition suggests that eBay aims to leverage Depop's existing customer base while enhancing its own offerings in the realm of second-hand goods, potentially blending both platforms to provide a more comprehensive online shopping experience for younger consumers.