A significant shift is underway in the world of online retail, as eBay has reached an agreement to acquire Depop, the popular second-hand fashion app, for a substantial $1.2 billion.
This move signals eBay’s strategic effort to capture a younger audience, recognizing the growing influence of Gen Z shoppers and their preference for sustainable fashion choices. Depop has cultivated a dedicated following, with nearly 90% of its seven million active buyers under the age of 34.
Etsy, the marketplace known for handmade and vintage goods, is selling Depop just five years after initially acquiring it for $1.62 billion. The decision allows Etsy to refocus its resources on its core business and pursue growth opportunities aligned with its original mission.
Despite the change in ownership, Depop is expected to maintain its distinct identity. The platform will retain its brand, name, culture, and overall user experience, ensuring continuity for its loyal community.
eBay’s leadership expressed confidence that integrating Depop will unlock new potential for growth, leveraging eBay’s established infrastructure and operational expertise. They envision a future where Depop’s unique social-forward marketplace thrives within the eBay ecosystem.
Founded in London in 2011, Depop quickly rose to prominence as a hub for pre-loved fashion, fueled by a generation increasingly conscious of environmental impact and individual style. The platform’s success reflects a broader trend towards circularity in the fashion industry.
Depop’s CEO, Peter Semple, highlighted the synergy between Depop and eBay, emphasizing a shared commitment to sustainability and a belief in empowering individuals through commerce. He anticipates the partnership will accelerate Depop’s expansion, particularly in the United States.
The transaction is anticipated to be finalized in the coming months, marking a new chapter for both Depop and eBay as they navigate the evolving landscape of online retail and cater to the demands of a changing consumer base.
