Online retailer eBay buying Gen Z secondhand – Business News
Online vendor eBay desires a greater share of the Gen Z market.
The online vendor has agreed to buy secondhand fashion market Depop from Etsy for about $1.2 billion in money, the businesses mentioned Wednesday.
The deal comes at a time when used clothes has grow to be more and more common, sought out by customers looking for distinctive objects that price much less than new ones and keep the outdated stuff from heading to the landfill.
An Ebay app emblem is proven on a cell phone, July 11, 2019, in Miami. AP
In a assertion, eBay’s CEO Jamie Ianonne mentioned that the acquisition is an alternative to seize a youthful demographic.
“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,” Ianonne mentioned.
As of Dec. 31, 2025, Depop’s market had 7 million lively consumers, practically 90% of that are beneath the age of 34, and more than 3 million lively sellers, the joint release mentioned.
The deal comes 5 years after Etsy purchased Depop for $1.6 billion. The app was based in 2011.
The Depop utility on a smartphone organized within the Brooklyn borough of New York, U.S., on Wednesday, June 2, 2021. Bloomberg through Getty Images
EBay, based mostly in San Jose, California, mentioned it intends to pay money. Etsy, based mostly in Brooklyn, New York, plans to make the most of the proceeds for common company functions, continued share repurchases and investment in its core market, in keeping with the release.
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The transaction, which has been unanimously accredited by eBay’s and Etsy’s boards, is at the moment anticipated to close within the second quarter, the businesses mentioned.
Depop is predicted to retain its title, model, platform, and its tradition, the businesses mentioned.
EBay’s shares rose more than 7%, whereas Etsy’s share soared close to fifteen% in after-hours trading when the information was introduced.
