eBay is making a multibillion-dollar bet on the future of secondhand fashion, agreeing to acquire Depop for $1.2 billion in a move aimed squarely at winning over Generation Z shoppers.

Depop, a peer-to-peer resale platform known for its vintage streetwear, Y2K aesthetics, and influencer-driven culture, has become a staple of Gen Z shopping habits. Around 90% of its roughly 7 million active buyers are under 34, a demographic eBay has struggled to capture as its core user base has aged and competition from newer marketplaces has intensified.

The acquisition is designed to inject youth, culture, and social-commerce savvy into eBay’s sprawling but comparatively traditional marketplace. Depop functions as a hybrid of resale app and social network, where users follow favorite sellers, style influencers, and micro-brands, and where trends spread less like retail and more like TikTok.

Industry analysts say the timing is strategic. Secondhand apparel has shifted from niche to mainstream, driven by sustainability concerns, price sensitivity, and the thrill of finding unique pieces. Research firms tracking the sector project that resale fashion will grow several times faster than the broader apparel market over the next few years, as younger consumers embrace circular shopping and reject fast-fashion waste.

For eBay, Depop offers both growth and relevance. The platform gives eBay a direct line into Gen Z’s shopping behavior, from how they discover products to how they interact with brands and creators. It also strengthens eBay’s position against rivals like Poshmark, Vinted, and ThredUp, all vying to dominate the booming recommerce space.

Financial markets reacted positively to the announcement, with shares of both eBay and Depop’s current owner, Etsy, rising after the deal was unveiled. The transaction, structured as a cash deal, is expected to close in the second quarter of 2026, pending regulatory approvals and customary closing conditions.

Post-acquisition, Depop is expected to continue operating as a distinct brand with its own app, community, and leadership, while tapping into eBay’s global infrastructure, payments capabilities, and logistics expertise. The challenge for eBay will be to scale Depop without diluting the authenticity and subcultural edge that made it a Gen Z favorite in the first place.