The news: eBay will acquire peer-to-peer secondhand marketplace Depop from Etsy for around $1.2 billion in cash—below the $1.62 billion Etsy paid for the platform less than five years ago.

What’s in it for Etsy: While Depop was the only part of Etsy’s business to deliver consistent growth, it also drained the company’s finances.

• The marketplace’s lower take rate and unprofitability delivered a 350 basis point hit to Etsy’s consolidated adjusted EBITDA margins in 2025.
• Etsy was also spending heavily on marketing to increase Depop’s brand awareness beyond Gen Z—funds that could have been used to support recovery in its core business.

With the cash in hand, Etsy now has the resources to invest in its namesake marketplace, some of which could go toward preparing its platform for agentic commerce and improving the app experience.

What’s in it for eBay: For eBay, the Depop acquisition is an opportunity for the company to increase its reach among Gen Z and millennials, who account for the vast majority of the marketplace’s users, and deepen its presence in the fast-growing fashion resale market. Depop also has a unique “sell-to-buy flywheel,” with over 1 in 3 buyers also listing at least one product for sale in 2025, ensuring a consistent flow of inventory and sales.

With eBay’s considerable resources, expertise, and scale now at Depop’s disposal, the marketplace has a better chance of growing its presence in the US market and fending off rivals like Vinted and Poshmark.

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