In a bold move set to reshape the landscape of online fashion retail, eBay announced its acquisition of Depop, a leading consumer-to-consumer (C2C) fashion marketplace, for approximately $1.2 billion. This acquisition comes as eBay aims to enhance its offerings to the Gen Z and Millennial demographics, tapping into a customer base deeply engaged in the recommerce movement—where pre-loved items are bought and sold.
Depop’s impressive growth trajectory highlights its potential in this space, boasting annual gross merchandise sales of around $1 billion and nearly 60% growth in the U.S. in 2025 alone. With 7 million active buyers, a staggering 90% of whom are under 34, and over 3 million active sellers, Depop has carved out a niche as a vibrant community where users can discover and trade stylish secondhand fashion.
Jamie Ianonne, CEO of eBay, expressed confidence in Depop’s capabilities as part of eBay, stating, “Depop has built a trusted, social-forward marketplace with strong momentum in the pre-loved fashion category.” He explained that by integrating Depop’s unique brand and culture into eBay, the company anticipates significant growth, benefiting both buyers and sellers through enhanced offerings and operational capabilities.
This acquisition allows eBay to enrich its already substantial fashion footprint, which represents over $10 billion in annual gross merchandise volume. The deal aligns with eBay’s strategy to target younger consumers with a fresh retail experience and offers exciting opportunities for small business owners looking to tap into this burgeoning market.
The news resonates with small business owners who thrive on platforms like Etsy, which now aims to sharpen its focus on core marketplace growth after this transaction. Kruti Patel Goyal, CEO of Etsy, noted, “This transaction is a great outcome for Etsy’s shareholders, and a positive next step for all involved.” By stepping back, Etsy plans to leverage the influx of capital for share repurchases and reinvesting in its primary marketplace.
Furthermore, eBay’s integration of Depop is forecast to enhance the visibility of its inventory through creative cross-listing opportunities. This could create a ripple effect for small businesses selling through these platforms by expanding their market reach globally and introducing their products to new customers.
However, while this acquisition brings multiple advantages, small business owners should also consider potential challenges. The competitive landscape in the online retail space is ever-changing. Owners must stay agile and adapt to shifting consumer preferences, especially as established giants like eBay continue to expand their offerings.
Additionally, while Depop will retain its name and culture, integrating an independent marketplace into a larger company often presents operational challenges. Maintaining the sense of community and personalization that have driven Depop’s success will require careful management.
Peter Semple, CEO of Depop, emphasized the significance of this transition, stating, “We’re thrilled to begin this next chapter with eBay, whose experience in the C2C fashion space positions us to meaningfully accelerate our marketplace.” He reassured stakeholders that this merger stands to bolster the goals of making fashion more circular and sustainable.
For small business owners, these developments come with the promise of expanded avenues for marketing and selling products while also posing a need to remain competitive amidst a growing array of options for consumers. The landscape ahead will require vigilance and innovation from every player in the field as eBay ramps up its focus on younger shoppers and sustainable fashion practices.
This acquisition, approved unanimously by the boards of both eBay and Etsy, is expected to close in the second quarter of 2026, pending regulatory approvals. As these monumental changes unfold, small business owners should remain alert to how they can leverage these market shifts to drive their business success.
For further details, you can read the official announcement here.
