In 2021, Etsy purchased Depop, a growing online fashion resale platform, for $1.6 billion, hoping to enhance its competitive standing against major online retailers like Amazon. However, over the years, Etsy struggled with declining demand and increasing competition, particularly from discount giants like Temu and Shein, which attracted younger consumers with lower prices and faster delivery options. As part of a strategic shift to refocus on its core market, Etsy recently decided to offload Depop to eBay for $1.2 billion, five years after its purchase. Depop, founded in the UK, has cultivated a young user base, with nearly 90% of its seven million active buyers under the age of 34. The acquisition by eBay is expected to help the company tap into the lucrative re-commerce market and attract a younger demographic. eBay's CEO, Jamie Ianonne, expressed confidence that this acquisition would enhance their used clothing sales, one of the fastest-growing segments in their business. The deal will maintain Depop's name and branding, and it is anticipated to close by mid-2026, coinciding with the release of eBay's 2025 financial results, which revealed an 8% revenue increase from the prior year. This transaction reflects Etsy's ongoing strategy to streamline its acquisitions and focus on its main offerings in the crafts market.