The all-cash deal is expected to be completed by the middle of this year and will see Depop retain its name and branding.
It will help boost eBay’s used clothes sales, which is one of eBay’s “fastest-growing” categories, said chief executive officer Jamie Ianonne.
The announcement came as eBay published its 2025 financial results which showed revenues rose to $11.1bn, up 8% compared to a year earlier.
Etsy’s share price rose more than 15% in after-hours trading, while eBay’s was rose by almost 6.5%.
According to Etsy, nearly 90% of Depop’s seven million active buyers are under the age of 34.
The second-hand fashion platform also has more than three million active sellers.
Depop has become “one of the fastest-growing fashion resale marketplaces in the US”, said Kruti Patel Goyal, chief executive of Etsy.
“I am confident that Depop is well-positioned for its next phase of growth as part of eBay,” she added.
