Etsy Buys Clothing App Depop In $1 Billion Deal 

Popular online retail giant Etsy announced this week that they would be purchasing Depop, a British secondhand fashion resale app that works like eBay, but specifically for clothing; the app is mainly used by younger generations as a means of purchasing vintage clothing and custom made pieces. 

Josh Silverman, the chief executive of Etsy, which is based in Brooklyn, New York, said that he was already expecting the resale craze to peak as we enter this post-pandemic world. 

Embed from Getty Images

“I expect this whole resale market to continue long after the pandemic, and I believe that Depop’s passionate community of fashion-conscious young people will be leading the way. The generation Z demographic is enormous, and is known as the trendsetter demographic.”

More than 90% of Depop’s 30 million users are under the age of 26, which makes them a part of generation Z, the smartphone conscious generation that utilizes technology to communicate, but also improve the world. 

Etsy revealed that Depop is the 10th most visited shopping site among generation Z consumers in the United States. Etsy itself was founded back in 2005 and has been attempting to expand its influence among younger generations. The average Etsy user is 39, as the app mainly focuses on crafts and handmade items as well as secondhand clothing. Etsy is known for helping small business owners create a larger customer base for themselves, as the site is so universally used around the world.  

Embed from Getty Images

Simon Beckerman is the founder of Depop, and claims he originally made the app for fun back in 2011 while working at a fashion magazine. The app now has registered users in 150 countries and currently has 2 million active sellers; which sold about $650 million worth of secondhand clothing last year alone; Depop took a $70 million cut. 

“The idea for the app came from an early realization that there was going to be a new generation of people who were most acquainted with using mobile phones and there was no app designed for selling clothes.”

Beckerman, who was born in Milan, told Artefact magazine in 2015 that “the concept for the app was initially a shop for the magazine I worked for in Italy and we would sell everything featured in the magazine. When we started Depop, apps were [in their] very early stages and apart from the three or four main ones that everybody was starting to use heavily – such as Instagram, Facebook or Twitter – it wasn’t very clear how we were going to use them fully. We didn’t realise how integrated with our lives they would be.”

Etsy claimed that they would be allowing Depop to continue to operate as is; a standalone business run in London. In general, the secondhand clothing market is valued at about $40 billion, so this acquisition was likely one of the biggest business decisions Etsy could’ve done coming out of this pandemic.