ONLINE SELLER EBAY has agreed to pay $1.2 billion (€1.1 billion) to take over second-hand clothing marketplace Depop from Etsy, the companies have announced.

Depop, a mobile-first platform founded in the UK in 2011, is expected to retain its name, brand and platform, the companies said.

At the end of last year, Depop’s marketplace had three million active sellers and seven million active buyers, nearly 90% of which were under the age of 34.

The billion dollar deal is currently expected to close in the second quarter of 2026.

It will give Depop access to eBay’s financial services, shipping solutions, and features such as an Authenticity Guarantee, which eBay says will “further accelerate growth and enhance the buyer and seller experience”.

eBay says it will also expand the visibility of Depop’s inventory, including through cross-listing opportunities on both sites.

eBay intends to fund the acquisition with cash on hand, and Etsy plans to accelerate its growth in the handmade, vintage, and unique items arena.

Jamie Iannone, eBay’s CEO, said that Depop will now be “even more well-positioned for long-term growth, benefiting from our scale, complementary offerings and operational capabilities”.

“This acquisition presents an opportunity to advance one of our newest and fastest-growing focus categories (fashion) with a marketplace that complements our existing presence, and enables us to reach a younger demographic across the expanding re-commerce landscape,” he said.