A Smart Play to Capture Rising Resale Demand (Image Credits: Pixabay)
eBay revealed plans on February 18 to purchase the fashion resale app Depop from Etsy in a $1.2 billion deal designed to attract Gen Z and Gen Alpha users.
A Smart Play to Capture Rising Resale Demand
The secondhand apparel sector continues to surge ahead of traditional retail. According to ThredUp’s 2025 Resale Report, this market will hit $367 billion by 2029, expanding 2.7 times faster than the broader apparel industry. Younger generations fuel much of this momentum, with 39% reporting purchases via social commerce platforms in the prior year.
eBay positions the acquisition as a gateway to these demographics. Millennials and Gen Z already drive significant buyer growth for the company. Depop’s integration promises to bolster that trend while operating independently post-merger.
Depop’s Rapid Rise Among Under-34 Users
Depop posted about $1 billion in sales during 2025, including nearly 60% year-over-year growth in the United States. The platform counted seven million active customers as of December 31, with almost 90% under age 34. Such figures underscore its dominance in youth-oriented resale.
The transaction, detailed in Etsy’s press release, anticipates closure in the second quarter of 2026. Depop will keep its name, brand, and platform intact under eBay. This setup allows eBay to leverage Depop’s established appeal without disrupting its core operations.
Social Media Design That Keeps Users Scrolling
Depop stands out through interfaces borrowed from apps like TikTok, Instagram, and Pinterest. Its homepage delivers a “Suggested for you” feed of curated items based on user activity, mimicking endless social scrolls rather than static category lists. This approach displays about four items at once with minimal clutter, prompting extended browsing sessions.
Competitors like eBay favor deal promotions and broad categories, which can overwhelm newcomers. Depop’s layout prioritizes aesthetics and simplicity, aligning with mobile-first habits of its audience. Users often access it alongside social feeds, treating it less like e-commerce and more like discovery.
- Endless, algorithm-driven feeds similar to TikTok Explore.
- Bottom navigation bar echoing Pinterest’s style.
- Low information density to sustain engagement.
- Phone-optimized for quick, habitual checks.
Streamlined Tools for Buyers and Sellers
Selling on Depop mirrors posting on Instagram: tap a “+” icon, upload photos, add captions and tags, then generate shipping labels based on item weight. This consolidated app handles listings, purchases, and management in one place, easing entry for novices. Etsy splits buying and selling into separate apps and requires web navigation for shop oversight.
Depop also resists the influx of AI-generated listings plaguing sites like eBay and Etsy. Searches for items like “fantasy dress” yield authentic photos, thanks to rules mandating seller-taken images only. This preserves the charm of browsing real wardrobes, setting Depop apart in a market increasingly dotted with synthetic visuals.
Key Takeaways
- Depop’s social-like UX drives its edge over traditional resale platforms.
- Young users propel resale growth, making Depop a prime target for eBay.
- Authentic photos and simple tools maintain its appeal amid AI trends.
This acquisition highlights how resale success hinges on blending commerce with social familiarity. As platforms evolve, Depop’s model offers lessons for engaging digital natives. What features draw you to resale apps? Share your thoughts in the comments.