Etsy Sells Depop to eBay for $1.2bn, Refocusing on Core Marketplace
Etsy will receive $1.2bn from selling Depop to eBay after Depop’s marketplace sales rose from $727m in 2024 to about $1bn in 2025. The divestment refocuses Etsy on its core handmade and vintage marketplace and strengthens its cash position.
1. Deal Details
Etsy agreed to sell Depop to eBay for $1.2bn, completing the transaction on 19 February. The deal transfers Depop’s young-skewing user base into eBay’s broader resale ecosystem while keeping the platform standalone under new ownership.
2. Depop Growth Metrics
Depop’s gross marketplace sales expanded from $264m in 2019 to $727m in 2024, reaching roughly $1bn in 2025. Despite this growth, it remains about one-tenth the size of Vinted’s $10.6bn 2024 sales, illustrating a scale gap in the secondhand fashion market.
3. Strategic Focus
The divestment allows Etsy to concentrate on its core handmade and vintage marketplace, shedding a segment where seller fees hampered volume-driven growth. It also frees resources for investment in product curation, marketing and international expansion within Etsy’s primary categories.
4. Financial Implications
The $1.2bn proceeds will bolster Etsy’s cash reserves, potentially funding share buybacks or strategic investments. Offloading a lower-margin business could improve operating margins and streamline future earnings growth trajectories.