(Image Source: Reuters)
Etsy just shared its intention to buy Depop for $1.63 billion, seeking to attract more Gen-Z shoppers.
Etsy is one of the e-commerce companies that benefited from the pandemic-fueled surge in sales over last year. Etsy is well-known worldwide as an e-commerce platform for handmade goods and vintage items. It is estimated that the second-hand clothing market alone will be worth $64 billion by 2024 in the U.S.
Depop, a London-based fashion marketplace founded 10 years ago by Simon Beckerman, earned its reputation for its collection of vintage items and streetwear. It now has over 26 million users across more than 147 countries, with 90% of them consisting of Gen-Z shoppers. Depop ranked 10th in the list of the most visited shopping sites by Gen-Z in the U.S.
CEO of Etsy, Josh Silverman sees huge potential in Depop and thinks it will be a good addition to Etsy.
“This (Gen-Z) is an enormous demographic and it’s the trendsetter demographic,” shared Silverman.
Silverman expects Depop to increase Etsy’s sales in apparel, a growing category as people return to work and school. In 2020, this category brought Etsy about $1 billion in gross merchandise sales and doubled its overall revenue.