eBay buys second-hand clothing app Depop for $1.2bn

"Depop, the second-hand clothing app that has skyrocketed in popularity among Gen Z shoppers, is being sold to eBay for $1.2bn (890m). Etsy, the online platform, is offloading Depop just five years after it bought the business - which was founded in the UK - for $1.6bn. eBay is hoping that the deal will help the online auction firm, which is more than 30 years-old, "reach a younger demographic across the expanding re-commerce landscape"."

"Apps that allow people to buy and sell used or "pre-loved" garments and footwear have grown in use in recent years as young consumers seek sustainable, low-cost alternatives to traditional retailers. Nearly 90% of Depop's seven million active buyers are under the age of 34, according to Etsy. The second-hand fashion platform also has more than three million active sellers. Depop has become "one of the fastest-growing fashion resale marketplaces in the US", said Kruti Patel Goyal, chief executive of Etsy."

""I am confident that Depop is well-positioned for its next phase of growth as part of eBay," she added. Etsy bought Depop in 2021 as part of a series of acquisitions aimed at competing with rivals like Amazon, the online retail giant. It has since, however, pulled back from many of those deals. Etsy's share price rose by 15% in after-hours trading."

eBay will buy Depop for $1.2bn. Depop is a second-hand clothing app popular with Gen Z shoppers. Etsy originally bought Depop in 2021 for $1.6bn and is now selling it after five years. Depop has seven million active buyers, nearly 90% under age 34, and more than three million active sellers. eBay expects the acquisition to help it reach a younger demographic and expand in the re-commerce market. Apps for buying and selling pre-loved garments have grown as young consumers seek sustainable, low-cost alternatives. Etsy's share price rose 15% in after-hours trading.

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