Depop, Spotify Launch Partnership As eBay Faces Rising Marketing Costs
Less than two weeks after eBay closed its $1.4 billion acquisition of Depop, the resale marketplace launched another marketing partnership, this time with Spotify. The promotion centers on six artists: Eve, Amira Elfeky, Estevie, Frost Children, House of Protection and Lily Meola, with Depop storefronts featuring pieces from their wardrobes alongside a Spotify playlist and other content.
The companies are also hosting a two-day activation August 13 and 14 at the Hollywood Premiere Motel in Los Angeles, with live performances, genre-inspired closets, fashion edits and other experiences tied to the campaign. Depop calls it a “first-of-its-kind” partnership with Spotify, though the companies did not disclose what it costs, how many shoppers they expect it to reach or any targets for sales or buyer growth.
eBay completed its acquisition of Depop from Etsy on July 30, paying approximately $1.4 billion in cash, including $200 million in net purchase price adjustments and interest on top of the originally announced $1.2 billion price. Days after the deal closed, Wells Fargo and Citizens downgraded eBay ahead of Q2 earnings, citing rising competition in secondhand fashion and the likelihood that Depop will require more marketing investment than Wall Street has accounted for.
Liz Morton
Citizens estimated Depop could spend more than $250 million on marketing in 2026, up from $119 million last year, after recording $42 million of marketing expense in the first quarter alone. Wells Fargo also flagged the pace of spending, estimating Depop's July marketing expense was running at roughly three times the elevated level of rival Vinted.
The Spotify deal follows several other artist and live-event promotions from Depop this year, including a Kacey Musgraves shop, a Governors Ball activation in June and a Zara Larsson campaign in July. Depop called the Governors Ball event its largest-ever in-person activation and has also reportedly been buying performance advertising across Pinterest, Disney Plus and Roku.
Depop's 30-item Zara Larsson collection reportedly sold out within minutes, but that says little about whether the broader increase in marketing spend is driving buyer or GMV growth.
The marketplace had roughly 7 million active buyers when the acquisition was announced, nearly 90% under age 34. That younger audience was part of what eBay paid for, but keeping Depop growing now looks likely to require substantially more marketing spend than Wall Street expected.
eBay already has plenty of experience spending heavily on marketing without much movement in buyer numbers. The company spent approximately $2.4 billion on sales and marketing in 2025 while ending the year with 135 million active buyers, compared to 134 million excluding buyers from its acquisition of Norwegian resale marketplace Tise.
GameStop CEO Ryan Cohen highlighted that disconnect in his unsolicited bid for eBay earlier this year, proposing roughly $1.2 billion in sales and marketing cuts and arguing the company was spending too much without producing enough growth.
Bloomberg reported earlier this week, citing people familiar with the matter, that GameStop was considering withdrawing the takeover bid and Cohen was considering proposing a partnership or joint venture with eBay instead. No such change has been publicly announced by Cohen, GameStop or eBay, but whatever ultimately happens with the bid, the underlying numbers are difficult to ignore.
eBay has said Depop is expected to become accretive to non-GAAP operating income in 2028. After paying $1.4 billion for the business, the company now has to show that the growing marketing bill is producing meaningful buyer and GMV growth.
