eBay has announced its acquisition of the popular second-hand clothing platform Depop from Etsy for $1.2 billion (£890 million). This move is aimed at attracting a younger audience, with the deal set to be finalized in the second quarter of this year.
Established in London in 2011, Depop will maintain its name, brand, and platform under eBay’s ownership. The surge in interest from Gen Z and Millennial consumers looking for sustainable fashion choices has contributed to Depop’s growing success.
With seven million active buyers, primarily under the age of 34, and a nearly 60% increase in US sales over the past year, Depop has shown significant market traction. eBay’s CEO, Jamie Iannone, expressed confidence in Depop’s potential for long-term growth within eBay’s ecosystem, especially in the fashion category, which represents over $10 billion in annual gross merchandise volume for the company.
Etsy’s CEO, Kruti Patel Goyal, highlighted the strategic focus on expanding Etsy’s marketplace following the sale of Depop to eBay. The transaction is viewed as a positive step forward for all parties involved, enabling Etsy to concentrate on enhancing its core marketplace offerings.
Peter Semple, Depop’s CEO, emphasized the alignment between eBay and Depop’s values in promoting sustainable fashion and community building. The acquisition is seen as an opportunity to accelerate Depop’s marketplace growth in the US and beyond, leveraging eBay’s expertise in the consumer-to-consumer fashion sector.
The collaboration between eBay and Depop signifies a shared commitment to fostering a more sustainable and inclusive fashion landscape, positioning both companies for continued success in the evolving recommerce industry.