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Etsy will sell Depop to eBay for about $1.2 billion, reversing its 2021 acquisition and refocusing on the Etsy marketplace.

The site has become the go-to marketplace for young fashion lovers seeking second-hand clothing, with nearly 90% of its 7 million buyers under 34.

With the Depop acquisition, eBay aims to boost its fashion business, attract younger demographics, and capitalize on the booming recommerce market.

The U.K. apparel resale site, whose U.S. sales surged 60% last year, was a drag on Etsy’s margins.

Ebay wants Depop to help bolster its popularity among younger shoppers, with the deal expected to complete later this year.

Depop, the second-hand clothing app that has skyrocketed in popularity among Gen Z shoppers, is being sold to eBay for $1.2bn (£890m).