eBay Just Bought a Clothing Resale App With a ‘Cult Following’ for $1.2 Billion — Here’s Why
Entrepreneur
by Jonathan SmallFebruary 19, 2026
AI-Generated Deep Dive Summary
eBay has acquired Depop, a popular clothing resale app favored by Gen Z, from Etsy for $1.2 billion. This move aims to attract younger shoppers and tap into the growing demand for secondhand apparel. With 90% of its 7 million active buyers under 34, Depop's cult following positions it as a key player in eBay’s strategy to modernize and appeal to Generation Z.
The acquisition aligns with broader trends in the fashion industry, where sustainable shopping is increasingly popular. The resale market is projected to grow three times faster than new clothing sales by 2027, according to McKinsey. By purchasing Depop, eBay positions itself at the forefront of this trend, aiming to cater to a demographic that values authenticity and sustainability over traditional retail.
For startups and investors, this deal underscores the potential of secondhand markets. It highlights how established brands like eBay are adapting to meet consumer demands for affordable, unique, and eco-friendly options. The transaction also reflects the growing influence of Gen Z in shaping market dynamics, signaling a shift toward circular fashion and away from fast fashion.
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Originally published on Entrepreneur on 2/19/2026