Etsy announced the sale of second-hand fashion platform Depop to eBay for US$ 1.2 billion in cash, marking a strategic move that reinforces the recommerce trend and the pursuit of younger, sustainability-minded consumers.

Etsy sells Depop to eBay for US$ 1.2 billion

São Paulo, Feb 18 2026 – Etsy Inc. (NYSE: ETSY) confirmed the sale of its second-hand fashion platform, Depop, to eBay Inc. (NASDAQ: EBAY) for approximately US$ 1.2 billion in cash. The deal, announced in a joint statement from both companies, is expected to close in the second quarter of 2026, subject to regulatory approval. The transaction marks a milestone in the recommerce market, consolidating eBay’s position in the used-fashion segment and allowing Etsy to focus on its core business of handcrafted and vintage items.

---

What happened

Etsy sold Depop, its second-hand fashion subsidiary, to eBay for US$ 1.2 billion in cash. The announcement was made on February 18, 2026, with completion expected in the second quarter of the same year, pending regulatory approvals. Depop, known for its appeal among Gen Z, will continue to operate as an independent platform within eBay's ecosystem, but with future logistics and payments integrations, as detailed in the joint press release from both companies. According to Etsy's statement, the transition period is designed for seamless operational continuity.

Why this matters

• Circular economy – The transaction highlights the growing importance of second-hand commerce, which reduces waste and extends the lifespan of clothing and accessories. According to McKinsey data cited in the BBC News article, the global second-hand market is expected to reach US$ 64 billion by 2027, driven by environmental concerns and demand for more affordable prices. This aligns with broader sustainability trends noted by BloombergNEF.
• Access to young consumers – Depop has over 7 million active buyers, 90 % of whom are under 34 years old, giving eBay a direct channel to Gen Z, traditionally underrepresented on its marketplace. This reinforces eBay’s strategy to diversify its user base and compete with platforms like Poshmark and Vinted, as reported by TechCrunch.
• Etsy’s strategic focus – By divesting Depop, Etsy aims to concentrate resources on its core business of handcrafted and vintage items, where it already records higher margins. New CEO Kruti Patel Goyal stated that the sale "allows us to focus on the sustainable growth of our main marketplace, supporting independent creators worldwide," according to the Etsy press release.

---

Context and background

• Depop by the numbers – In 2025, Depop recorded about US$ 1 billion in Gross Merchandise Sales (GMS) and over 3 million active sellers, establishing itself as one of the leading second-hand fashion apps globally. The platform is especially popular among young people seeking unique and sustainable pieces. These figures are based on data shared in the Etsy press release.
• Original acquisition – Etsy bought Depop in 2021 for US$ 1.62 billion, when recommerce startup valuations were high during the pandemic. The current sale for US$ 1.2 billion represents a depreciation of about 26%, reflecting changes in the market and Etsy’s strategic focus. This historical context is detailed in the BBC News article.
• Recommerce trend – According to consulting firm McKinsey, as referenced in the BBC News coverage, the global second-hand market is expected to reach US$ 64 billion by 2027, driven by environmental concerns and consumers seeking more affordable prices. The transaction between Etsy and eBay fits into this accelerated growth scenario.
• eBay’s strategy – CEO Jamie Iannone stated that the acquisition "gives us access to a highly engaged community of buyers and sellers, especially among millennials and Gen Z, who are still underrepresented in our ecosystem," as noted in the eBay press release. eBay plans to integrate Depop into its logistics and payments infrastructure to improve the user experience.
• Etsy’s reaction – New CEO Kruti Patel Goyal, who took office in January 2026, stated that the sale "allows us to focus on the sustainable growth of our main marketplace, supporting independent creators worldwide," according to the Etsy press release. Etsy expects to use the cash generated to invest in technology and international expansion.

---

Transaction details

---

Impact analysis

1. Strengthening eBay in the fashion segment – Integrating Depop should expand the offering of used fashion items on eBay's platform, allowing the company to compete more effectively with rivals like Poshmark, ThredUp, and Vinted. Depop’s young user base may also help eBay rejuvenate its brand image, as noted by TechCrunch.
2. Operational synergies – eBay plans to leverage its logistics and payments infrastructure to improve the buying and selling experience on Depop, reducing transaction costs. This includes integrating checkout systems such as Apple Pay and Google Pay, as outlined in the eBay press release.
3. Regulatory risk – Antitrust authorities in the US and EU will analyze the impact of the consolidation on the recommerce market; eBay has already signaled willingness to cooperate and offer concessions if necessary, according to the AP News report. The transaction may face scrutiny due to increasing market concentration.
4. Impact on Etsy – The sale generates significant cash that can be reinvested in technology, marketing, and international expansion of the main marketplace, while also improving profitability. Etsy’s shares rose 17% after the announcement, according to CNBC.
5. Sustainability – BloombergNEF analysts, as cited in the New York Times, point out that the expansion of second-hand platforms could reduce demand for new clothing production by up to 15 % by 2030, contributing to global climate goals. Depop, with its strong youth appeal, is well positioned to lead this change.

---

Related developments

• Investments in AI technology – eBay recently announced an AI program to improve counterfeit detection in fashion products, as reported by TechCrunch, which should benefit Depop by ensuring greater buyer trust.
• Partnerships with sustainable brands – Etsy has been signing agreements with suppliers of recycled materials for its handcrafted products, reinforcing its positioning as a "green" marketplace, as noted in the Etsy press release.
• Circular fashion regulation – The European Union is advancing a proposed "Circular Economy Directive," which could create tax incentives for recommerce platforms like Depop, according to BloombergNEF analysis.

---

What’s next

• Technology integration – In the coming months, eBay is expected to migrate Depop’s payment infrastructure to its checkout system, offering options like Apple Pay and Google Pay, as detailed in the eBay press release.
• Geographic expansion – eBay plans to take Depop to emerging markets in Asia‑Pacific, where second-hand fashion consumption is growing rapidly, based on insights from the New York Times.
• Performance monitoring – Analysts will track the impact of the acquisition on eBay’s revenue indicators (GMV, contribution margin) and the evolution of Depop’s user base, as highlighted by CNBC.

---

Image source

Image: "Vintage clothing displayed in a retail store" – Long Chung (Unsplash). License: Unsplash (free use, no attribution required).

---

References

1. Etsy – Press Release – "eBay to Acquire Depop from Etsy" – Investors.etsy.com, Feb 18 2026. https://investors.etsy.com/news-events/press-releases/detail/217/ebay-to-acquire-depop-from-etsy
2. eBay – Press Release – "eBay to Acquire Depop from Etsy" – Investors.ebayinc.com, Feb 18 2026. https://investors.ebayinc.com/investor-news/press-release-details/2026/eBay-to-Acquire-Depop-from-Etsy/default.aspx
3. BBC News – "Etsy sells second‑hand fashion app Depop to eBay for $1.2 bn" – BBC, Feb 18 2026. https://www.bbc.com/news/articles/cx240kme2k8o
4. CNBC – "Etsy stock pops 17% on sale of Depop to eBay for $1.2 billion" – CNBC, Feb 18 2026. https://www.cnbc.com/2026/02/18/ebay-buying-depop-etsy.html
5. AP News – "Online seller eBay to buy second‑hand fashion marketplace Depop for about $1.2 billion" – AP News, Feb 18 2026. https://apnews.com/article/ebay-etsy-depop-gen-z-b8787b5326cb3a010f4d9e3468ee3171
6. TechCrunch – "Etsy sells second‑hand clothing marketplace Depop to eBay for $1.2 billion" – TechCrunch, Feb 18 2026. https://techcrunch.com/2026/02/18/etsy-sells-second-hand-clothing-marketplace-depop-to-ebay-for-1-2b/
7. New York Times – "Etsy Sells Depop, a Second‑hand Clothing App Popular With Gen Z, to eBay" – NYT, Feb 18 2026. https://www.nytimes.com/2026/02/18/business/etsy-depop-ebay.html

---

This article was prepared by The Good Signal, strictly following verification standards and citing reliable primary and secondary sources.