Source: Dazed, Morning Wrap
This is something new for e-commerce: the American vintage gift marketplace Etsy just bought the UK-based resale platform Depop… to go younger.
Hold on… what does Depop do?
It’s a second-hand fashion marketplace, with an Instagram-like interface, and a TikTok-like user group. Depop taps into the younger generation’s obsession with “side hustles”. As of today, more than 90% of its active users are below 26 (aka. Generation Z).
- In addition to individual sellers, Depop has also partnered with big brands like Adidas, Benetton, and Ralph Lauren to help them go sustainable.
Depop was truly popular last year. Revenue of Depop more than doubled in 2020, outpacing all resale peers.
Why did Etsy buy Depop?
Perhaps this is the reason… Etsy’s user base is way older than Depop, with a median age of 39. It needs a way to tap into the booming Generation Z.
- Under the deal, Esty would pay USD 1.6 bln to acquire Depop, primarily in cash 💵
- They both wish to learn from each other...Etsy’s international expansion strategy and Depop’s mobile operation experience.
Will this be “antitrust-ed”? Etsy answered “NO” - it thinks the deal could help individuals and the smaller businesses to compete with Amazon and others. This is “really aligned with where all the regulatory authorities want to go”.