In a move that fundamentally reshapes the circular fashion landscape, eBay has entered into a definitive agreement to acquire the social-first fashion marketplace, Depop from Etsy for $1.2 billion in cash. Announced on February 19, 2026, this transaction signals a major consolidation in the global secondhand apparel sector, which is projected to reach $53.7 billion by the end of this year. By absorbing Depop, eBay is making a high-stakes play for Generation Z, a demographic that currently constitutes nearly 90 per cent of Depop’s 7 million active buyers.
Strategic recalibration for recommerce growth
The deal reflects a significant shift in the competitive dynamics of apparel resale. While Etsy is offloading the platform at a 25 per cent discount from its 2021 acquisition price of $1.62 billion to focus on its core ‘handmade’ marketplace, eBay is integrating Depop to serve as a high-growth engine. Depop recorded $1 billion in gross merchandise sales (GMS) in 2025, fueled by a remarkable 60 per cent Y-o-Y growth in the US. Jamie Iannone, CEO, eBay notes, the acquisition will advance the company's ‘Focus Categories,’ particularly fashion, which already generates over $10 billion in annual GMS for the e-commerce giant.
Scaling social commerce through infrastructure
eBay plans to leverage its industrial-scale logistics and financial services to professionalize Depop’s community-driven model. Key updates will include the integration of eBay’s Authenticity Guarantee and cross-listing opportunities, allowing Depop’s 3 million active sellers to reach eBay’s much larger global audience. Despite the corporate transition, Depop is expected to remain a standalone brand headquartered in London. This deal allows us to benefit from eBay’s operational capabilities while maintaining our social-forward culture, states Peter Semple, CEO, Depop.
Navigating market headwinds and circular regulation
The acquisition comes as the apparel industry faces rising pressure from circularity mandates, such as California’s Responsible Textile Recovery Act. Industry analysts suggest, eBay’s infrastructure will help Depop navigate the high processing costs of single-SKU logistics - a common bottleneck in resale. With the global resale market growing three times faster than new clothing retail, the closing of this deal in Q2 2026 positions eBay to lead the transition toward a more sustainable, digital-first textile economy.
eBay Inc is a global commerce leader that connects millions of buyers and sellers in more than 190 markets. The company focuses on high-value categories like luxury, sneakers, and apparel, aiming to grow its $50 billion recommerce GMV by 10 per cent annually. Founded in 1995, eBay remains a pioneer in the C2C marketplace, now prioritizing AI-driven tools to capture the evolving Gen Z fashion segment.
