SECOND-HAND fashion clothing app Depop has been snapped up by craft supplies and handmade items marketplace Etsy.
The £1.2billion deal will give Etsy access to the younger Generation Z market that is served by Depop.
The second-hand clothing market is projected to be worth $64billion by 2024, twice the size of fast fashion, according to Statista.
This reflects concerns about the environmental and ethical impact of fast fashion, particularly among younger generations.
Approximately 90% of Depop's active users are under the age of 26 and young consumers are adopting second-hand fashion faster than any other age range.
Depop is also the tenth most visited shopping site among younger consumers in the US, all of which Etsy said makes it an attract proposition.
Josh Silverman, chief executive of Etsy, said: ""Depop is a vibrant, two-sided marketplace with a passionate community, a highly-differentiated offering of unique items, and we believe significant potential to further scale.
"Depop's world-class management team and employees have done a fantastic job nurturing this community and driving organic, authentic growth in a way that aligns well with Etsy's DNA and mission of keeping commerce human."
What is Depop?
Depop is a popular global fashion reselling app that is based in London.
It was launched in 2011 and now has more than 30million registered users in150 countries.
The app has become popular among celebrities such as Katie Price and Gemma Collins to sell unwanted designer clobber but can be used by anyone to make cash from their clothing or vintage item.
It is also used by influencers and less-known designers to sell their own branded items.
What is the difference between Esty and Depop?
Esty lets people and businesses setup shops to sell crafts, vintage and other handmade items.
Its users are older, with 39% aged under 26, according to Etsy.
This is one of the reasons Etsy was attracted to Depop.
There are some price differences as well.
Etsy charges 14p per listing that is charged every four months if a product is still for sale.
It also takes 5% when you make a sale.
There is also a payment processing fee depending on where you are based.
The UK payment processing fee is 4% plus 20p.
In contrast, Depop doesn’t charge you to list an item but will take 10% when you make a sale.
It also has a PayPal fee of 3.4% plus 14p.
What will happen to Depop sellers?
Analysts have backed the deal as a good way for Etsy to expand.
But some Depop sellers have expressed concern on Twitter that this could mean users are charged similar fees to Etsy.
One user highlighted that it was already hard to make a living using Etsy.
Another said she had previously left Etsy for Depop because she was unhappy with its service.
Etsy and Depop have been asked about these tweets.
The transaction is expected to complete in third quarter of this year.
Despite the concerns, Depop has said it will continue to be headquartered in London and operate as a standalone marketplace run by its existing leadership team.
Maria Raga, chief executive of Depop, said: "Our community is made up of people who are creating a new fashion system by establishing new trends and making new from old.
"They come to Depop for the clothes, but stay for the culture.
"We'll now take an exciting leap forward as part of the Etsy family, benefiting from the team’s expertise and the resources of a much larger company whose values are so aligned with ours here at Depop."
See how you could earn £100s each month by selling old junk.
Last month Martin Lewis’ MoneySavingExpert explained how M&S Bank customers can get £125 ahead of account closures so you'll want to be quick to cash in.
But these tips don't come without their risks, so we have three things to watch out for when selling your old gadgets via auction or recycling sites.
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