eBay has completed its acquisition of Depop, a social commerce platform beloved by Generation Z and younger millennials, in a deal valued at approximately $1.2 billion. The strategic move aims to modernize eBays image and capture the rapidly growing secondhand fashion market among younger consumers who have flocked to more visually-oriented shopping platforms.
The acquisition is expected to close in the second quarter of 2026 and will bring Depops 20 million registered users into eBays ecosystem. Unlike traditional eBay listings, Depops platform feels more like scrolling through Instagram outfits than browsing conventional e-commerce listings, reflecting a fundamental shift in how younger consumers prefer to discover and purchase fashion items.
Depop has built a devoted following among fashion-forward young people who value the platforms social features, including following sellers, liking items, and participating in a vibrant community around sustainable fashion and personal style.
The Social Commerce Revolution
The acquisition highlights the growing importance of social features in e-commerce and the challenges facing traditional platforms in attracting younger consumers. eBay, once the dominant online marketplace, has struggled to maintain relevance with consumers who have grown up with Instagram, TikTok, and other visually-driven platforms.
Depops approach to commerce combines social networking with marketplace functionality, creating an experience that feels more like entertainment than transactional shopping. This approach has proven particularly effective for secondhand fashion, where authenticity, style credentials, and community validation matter as much as price.
The platform has become especially popular among Gen Z consumers who are increasingly concerned about sustainability and the environmental impact of fast fashion. Depops circular economy model, which encourages buying and selling preowned items, aligns with the values of environmentally conscious younger shoppers.
Strategic Implications for eBay
The acquisition represents a significant strategic pivot for eBay, which has been working to modernize its brand and appeal to younger demographics. The company has invested in various initiatives to update its platform and improve the user experience, but has struggled to match the viral growth of newer social commerce platforms.
By acquiring Depop, eBay gains access to a highly engaged user base and a proven social commerce platform that can be integrated into its broader ecosystem. The deal also positions eBay more competitively against rivals including Poshmark, Mercari, and other platforms targeting the secondhand fashion market.
The secondhand fashion market is projected to continue growing rapidly as consumers, particularly younger ones, embrace sustainable shopping alternatives and the unique finds available on peer-to-peer platforms. Industry analysts expect the market to reach tens of billions of dollars in the coming years, presenting significant opportunities for platforms that can effectively capture this audience.