eBay has announced its agreement to acquire the second-hand clothing marketplace Depop from its competitor Etsy for $1.2 billion, emphasizing its strategy to appeal to a younger demographic amidst growing interest in sustainable fashion. The acquisition is expected to finalize in the second quarter of this year. Depop, founded in London in 2011, will maintain its name and platform following the transaction, which comes after Etsy initially purchased the platform for $1.62 billion.

The surge in popularity of Depop can be attributed to rising consumer demand among Gen Z and Millennial shoppers, who are increasingly favoring sustainable purchases and second-hand clothing. By the end of the previous year, Depop reported having seven million active buyers, with nearly 90% of its users under the age of 34. Notably, the platform's sales in the United States saw an almost 60% increase over the past year, marking an impressive trend toward sustainable shopping options in the e-commerce space.

Jamie Iannone, eBay’s CEO, highlighted the acquisition as part of their broader ambition to enhance eBay's appeal among younger consumers who prioritize sustainability. This business move reflects the changing landscape of online retail and the growing influence of eco-conscious consumer behavior, positioning eBay advantageously in a highly competitive market for second-hand goods.