Generation Z is obsessed with second-hand clothing, and eBay has seen growth in its fashion business thanks to Depop
Fortune
1h ago
Ai Focus
eBay executives stated during the third-quarter financial report conference call that in the past 12 months, eBay and Depop achieved fashion sales of $9 billion in the United States, representing a growth of over 20% compared to a year ago. Depop's U.S. sales more than doubled year-on-year in the third quarter, and eBay noted that younger consumers are more sensitive to sustainability and price, which is driving the growth of second-hand clothing transactions.
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Generation Z clearly has a fondness for the past; they have reignited hobbies such as collecting vinyl records, knitting with crochet needles, making pottery, and bird watching, which were once associated with the "grandma generation," attempting to live more offline lives. Among those who have benefited unexpectedly from this new wave of nostalgia is eBay. The company acquired the second-hand trading platform Depop for $1.4 billion in July and is now reaping profits from Generation Z's enthusiasm for second-hand clothing.

In a third-quarter earnings conference call on Wednesday, an executive from this e-commerce platform stated that over the past 12 months, eBay and Depop achieved fashion sales of $9 billion in the United States, representing a growth of over 20% compared to a year ago, which also includes the sales of Depop prior to its acquisition. eBay mentioned that Depop's sales in the U.S. more than doubled year-over-year in the third quarter, with younger consumers turning to others' wardrobes to purchase clothing. According to eBay's "2026 Reshaping Business Report," nearly 90% of Depop's 7 million active buyers last year were under the age of 34.

Depop said to Fortune: "Generation Z is not only embracing second-hand items, but they are also redefining the role of second-hand in fashion. On Depop, they act as both buyers and sellers, and they don't just try second-hand once; they keep coming back to buy and sell again and again."

eBay CEO Jamie Iannone stated to analysts that Generation Z's concern for sustainability is driving their interest in purchasing second-hand goods. The report surveyed 10,523 respondents from 10 countries, including the United States, the United Kingdom, Germany, France, and Japan. The report shows that among consumers aged 18 to 29, 46% purchase second-hand goods at least once a week, compared to 28% of all consumers overall.

Iannone says, "The younger generation is particularly concerned about sustainability and is driving the re-commerce movement. If you communicate with Generation Z, they will tell you that everything you want in this world already exists."

Affordability is also another major driving factor. The report shows that 76% of Gen Z respondents stated that second-hand goods help them manage their budgets, compared to 70% of all consumers overall. This trend may continue in the future: the report indicates that 60% of American consumers aged 18 to 29 expect to increase their purchases of second-hand goods next year, while this proportion is 41% for all American consumers.

Fashion brands are also catering to young consumers' preference for second-hand clothing. As previously reported by Fortune, Zara, Lululemon, H&M, and Levi have all developed resale programs in an attempt to capture the purchasing demand that would otherwise likely go to third-party platforms such as Depop, Poshmark, and ThredUp. According to ThredUp's "2026 Resale Report", the global second-hand clothing market is expected to reach $393 billion by 2030, with a growth rate twice that of the overall clothing market.

For eBay, Depop is becoming an important growth engine. Iannone stated during a teleconference that the platform had 11 million active buyers in the past 12 months up to the third quarter, which is higher than 9 million. The buying and selling activity of the new customer group is also higher than that of the early customer group, and the rates of repeat purchases, re-listing, and reselling have also improved year-on-year.

The speaker, eBay, stated to Fortune: "This transformation is particularly evident in the fashion industry. We continue to see healthy performance in the US market, as well as sustained strength in the luxury goods business, which benefits from the complementarity of Depop brands."

Chief Financial Officer Peggy M stated that eBay is now also investing more marketing resources into Depop. Iannone mentioned that the carrier rates for eBay have reduced the freight costs for Depop. He also noted that the company is exploring "supply-demand synergy between eBay and Depop" by attempting to showcase Depop products to people who shop on eBay.

Iannone said, "We manage eBay and Depop as a combined entity, preserving the unique experience of each brand, and allocate investments to opportunities that will bring the strongest long-term returns to the merged company."

This strategy seems to be working. The company's financial reports show that the total volume of commodity transactions in the third quarter ( GMV ) was 23.2 billion US dollars, a year-on-year increase of 15%; if exchange rate fluctuations are excluded, the growth rate is nearly 16%. Alford indicates that Depop contributed nearly 3 percentage points to this growth.

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