eBay Secures Dominance in Resale Market Through Strategic Acquisition of Gen Z Favorite Depop

eBay buys Depop from Etsy to dominate the Gen Z resale market. Discover how 90% of Depop's users under 34 are reshaping the $1 billion circular fashion economy.

By: AXL Media

Published: Feb 24, 2026, 5:03 AM EST

Source: The information in this article was sourced from Calcalist.

Ebay Capitalizes on Social Commerce Expansion

In a significant consolidation of the digital fashion market, eBay has moved to acquire Depop, the popular peer-to-peer social shopping app, from its previous owner, Etsy. This transaction marks a decisive attempt by the legacy auction platform to modernize its image and integrate more deeply with social-media-driven retail trends. Approximately 40 percent of eBay’s current revenue is already generated through the sale of pre-owned apparel, making this acquisition a natural extension of its core business model. By bringing Depop into its portfolio, eBay gains access to a vibrant community of more than 3 million active sellers and a platform that has successfully bridged the gap between social networking and e-commerce.

Targeting the Millennial and Gen Z Fashion Sector

The strategic pivot toward Depop is driven by a critical need to capture the attention of younger shoppers who increasingly prioritize sustainability and unique vintage finds. Market data indicates that 62 percent of Millennials and 66 percent of Gen Z consumers consider the purchase of second-hand clothing to be a personally important value. According to recent surveys, Depop’s user base is exceptionally young, with almost 90 percent of its 7 million active buyers being under the age of 34. This demographic alignment allows eBay to refresh its brand identity and appeal to a generation that views "circular fashion" as a primary lifestyle choice rather than a secondary market.

Competitive Pressure from European and Chinese Giants

The acquisition arrives at a time when the second-hand retail space is becoming increasingly crowded and aggressive. European competitor Vinted recently surged to become the third-largest fashion retailer in the United Kingdom, surpassing many traditional high-street brands. Simultaneously, the entire industry is facing unprecedented pressure from Chinese fast-fashion platforms like Shein and Temu, which offer extremely low prices and rapid delivery times. According to industry analysts, eBay has struggled to maintain its pace of growth against these specialized apps, necessitating the removal of seller fees for private fashion listings in some markets to remain competitive in the face of Vinted’s buyer-led fee structure.