The Newsstand August 2021

Etsy Snaps Up British Fashion App Depop For $1.6 Billion

In a recent statement by the crafting giant, Etsy, it was announced that Depop would be the latest to join the Etsy ‘family of brands’ in the third quarter of 2021. There are many reasons for this purchase by Etsy but one of the main reasons is Depop’s rising popularity and similarity with Etsy itself. Not only has there been a massive surge in thrifted clothing sales over the last year on both sites, but the demographics for these two platforms perfectly align as well. 

At least 90% of Depop’s 30 million users are 26 or younger while the average demographic for Etsy is between the ages of 18 and 35. Similarly, both Etsy and Depop are mainly used by female buyers and sellers with a large crossover between the two already. This $1.6 Billion purchase may seem hefty but Josh Silverman, Etsy CEO, believes it is well worth the investment for Gen Z traffic alone. 

Still, the question that most handmade sellers are now asking themselves isn’t why the purchase occurred but rather what it will mean for their Depop shops in the future. Fortunately, from the press releases by both brands, it would appear that Etsy is simply hoping to ride the curtails of Depop and help them create a scalable infrastructure for the foreseeable future. 

For now, Depop will simply cross-promote with its new brother company and serve as a standalone marketplace run by its existing leadership as it always has. So, for Depop shop owners, don’t panic because the future of your shop would appear to be all smooth sailing from here on out. For Etsy users, perhaps your brand can start selling on Depop as well?

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