eBay acquires Depop for $1.7b as it seeks to expand in the fast-growing resale market to reach Gen Z, Millennials

The global e-commerce corporation eBay has entered into a transaction agreement to acquire the fashion marketplace, marking a pivotal move to strengthen its footing in the fashion industry.

The e-commerce colossus eBay will pay US$1.2 billion ($1.7 billion) in cash to buy popular fashion marketplace Depop, a strategic measure to gain access to its Millennial and Gen Z customer base.

The two companies have signed an agreement for eBay to acquire Depop from its parent company, Etsy. The deal is expected to close by June, subject to regulatory approvals and customary closing conditions.

Meanwhile, Depop’s culture will remain the same, but the platform will adopt certain eBay’s features such as shipping options and authenticity guarantees.

In this regard, “eBay chief executive Jamie lannone said: “Depop has built a trusted, social-forward marketplace with strong momentum in the pre-loved fashion category, and we are confident that as part of eBay, Depop will be even more well-positioned for long-term growth benefiting from our scale, complementary offerings, and operational capabilities.

Depop is a second-hand fashion marketplace that has 7 million active buyers, 90 per cent of whom are under the age of 34 and made $US1.4 billion last year.

The data further suggests that eBay boasts more of the online market share with 135 million active buyers internationally, and 61 per cent of its users being between 35 and 64.

The partnership is set to leverage Depop’s unique brand culture and community to deliver significant benefits to buyers and sellers. This represents a prime opportunity for both companies to achieve growth that truly resonates with their respective audiences.