In early 2026, eBay announced its acquisition of Depop, a second-hand fashion marketplace, from Etsy for approximately $1.2 billion. This move is part of eBay's strategy to tap into a younger demographic that is deemed more fashion-conscious and proficient in resale markets. Depop was initially purchased by Etsy in 2021 for $1.6 billion, but due to slowing growth rates and a desire to concentrate on its core platform, Etsy decided to sell it at a loss. As part of the deal, eBay hopes to enhance Depop's offerings through its operational capabilities and scale. The second-hand fashion industry has been experiencing significant growth, with the U.S. second-hand apparel market projected to surge from $28 billion in 2019 to $56 billion in 2025. Analysts predict that the global second-hand fashion market could expand from $210 billion in 2025 to over $580 billion by 2035, indicating a promising future for platforms like Depop. Given the increasing demand for sustainable fashion options and the environmental impact of traditional fashion practices, eBay's acquisition aligns with current consumer trends pushing for eco-friendly alternatives. Etsy, facing its own challenges, including slowed revenue growth, announced that it intends to use the proceeds from the sale for corporate purposes, including share repurchase and investment in its main platform. With a focus on strengthening its marketplace, Etsy's CEO expressed confidence that Depop would fare better as part of eBay, leveraging its broader operational strengths. For eBay, fashion has proven to be a significant revenue driver, with an annual gross merchandise volume exceeding $10 billion. This acquisition marks a pivotal moment in eBay's strategy to enhance its fashion segment and better appeal to the Gen Z market, which is increasingly driving resale trends in the fashion industry.