eBay's bold Depop deal and AI push aim to win back younger shoppers
eBay has reported strong financial and operational results for its latest quarter, with double-digit growth in revenue and gross merchandise volume (GMV). The company also announced plans to acquire Depop, a move aimed at strengthening its position in consumer-to-consumer (C2C) trading and attracting younger shoppers.
Behind the scenes, AI-driven improvements have cut listing times by 25% while boosting new listings by 50%. Customer satisfaction for these core features has now topped 95%.
Over the past five years, eBay's share of the global C2C market has slipped from around 25% to 18%. Rivals like Facebook Marketplace and Poshmark have gained ground, with Facebook's share jumping from 15% to 32% thanks to social media integration and mobile growth. Poshmark, focused on fashion, rose from 4% to 9% in the US during the same period.
Despite this, eBay's focus categories—including collectibles—grew GMV by over 16%, helped by AI-powered product innovations. The recommerce segment now makes up more than 40% of GMV, preventing 8.2 million metric tons of carbon emissions and keeping 360,000 metric tons of waste out of landfills between 2021 and 2025.
Financially, eBay returned $756 million to shareholders in Q4 through buybacks and dividends. The company's take rate also climbed to 14%, up 60 basis points, driven by higher buyer protection fees and a surge in advertising revenue. Looking ahead, eBay Live and Vehicles have been flagged as key growth areas for 2026.
The acquisition of Depop and ongoing AI enhancements signal eBay's push to reclaim C2C leadership and engage younger buyers. With recommerce playing a bigger role and emerging segments like eBay Live gaining traction, the company aims to build on its recent double-digit growth in revenue and GMV. The next phase will test whether these moves can reverse its market share decline against fast-growing competitors.
