In recent years, online thrifting has exploded, and Depop stands out as a major player in this trend. With over 35 million active users on its platform, Depop caters to a young and trendy demographic, offering a platform for reselling everything from vintage purses to preloved clothes.
If you’re considering selling on Depop, you need to understand the different kinds of fees associated with selling on Depop, as it’s important for estimating your potential earnings.
In this guide, we will break down and explain Depop fees, empowering sellers to calculate their own costs accurately before diving in. We’ll discuss how Depop fees work, including what happens with fees when you issue a refund, and the ins and outs of fees when bundling items.
So let’s begin:
Understanding Depop Fees
The very first thing that you need to know about Depop fees is that Depop only charges you fees when you sell anything. There are three types of fees: flat fee, payment processing fee, and shipping fee.
First, there’s the flat fee. This is what you pay Depop for each sale. It’s like a service charge.
Second, there’s the payment processing fee. This depends on how you get paid. It’s what you pay for the method you use to accept payments, like Depop Payments or PayPal.
Third, there’s the shipping fee. If you buy a shipping label through Depop, you might have to pay for it.
There are a few other types of fees as well that we will discuss later in this guide.
Depop Selling Fees
Depop charges a 10% selling fee to all sellers for every item sold on the marketplace. This fee is essentially a commission that all sellers have to pay to Depop for facilitating their sales. Unlike some other marketplaces like Etsy, Depop doesn’t have any listing fees, so the 10% selling fee is the primary way they make money from sellers.
When you sell something on Depop, this 10% fee is calculated based on the entire transaction amount. This means it includes not just the price of the item sold but also any shipping costs associated with the sale. So, if you sell an item for $50 and charge $5 for shipping, Depop’s fee will be 10% of $55, which is $5.50.
It’s important to know that Depop calculates its fee before deducting any other costs or fees. So, regardless of whether you have other expenses like packaging materials or PayPal fees, Depop’s 10% fee will be applied first.
Payment Processing Fees
1- Processing Fees for Depop Payments Users
Depop Payments is an integrated payment system that operates through Stripe Connect, handling various methods like Apple Pay, Google Pay, credit/debit cards, and Klarna. It’s important to note that since October 2023, all sellers in the UK and US are mandated to use Depop Payments for their transactions.
If you’re a seller based in the US, you’ll incur a payment processing fee of 3.3% plus $0.45 for each sale made on Depop. On the other hand, if you’re located in the UK, the payment processing fee is slightly lower at 2.9% plus £0.30.
The payment processing fee for using Depop Payments is what you pay Depop for facilitating the processing of your buyers’ payments. It’s a straightforward percentage of the sale amount plus a fixed fee, dependent on your location.
2- Processing Fees for Using PayPal
For Depop sellers outside of the US and UK, PayPal is the payment processing method they’ll need to use. The fees associated with PayPal transaction processing are determined by PayPal itself and can vary based on your location.
If you’re based in the EU and use PayPal for payment processing, there’s an additional 1.29% service fee charged by Depop for sales made to UK buyers. This additional fee is separate from PayPal’s charges and is specific to transactions involving sellers in the EU and buyers in the UK.
To determine the exact amount you’ll pay in payment processing fees when using PayPal, you’ll need to check directly with PayPal as their fee structure can differ based on various factors such as your location and the type of transaction.
Shipping Fees
1- Fees for Using Depop Shipping
When you sell items on Depop, you have the option to handle shipping in two ways. The first method involves using Depop’s shipping service, where you can purchase shipping labels directly through the platform. This choice is available for sellers in the contiguous United States, meaning everywhere in the US except Hawaii, Alaska, and US territories.
The cost of using Depop’s shipping labels varies depending on factors such as the weight and size of the item you’re sending. Typically, their shipping fees range from $4.39 to $13.49. Remember, these fees are in addition to any other charges associated with selling on Depop.
If you decide to cover the shipping costs yourself, Depop will subtract the amount from your total transaction, along with other selling fees. However, if you opt to have the buyer cover shipping, Depop will initially transfer the transaction amount plus the shipping costs to you. Later, they’ll deduct the shipping fee, along with other Depop fees.
2- Fees for Using Your Own Shipping Methods
Alternatively, as a Depop seller, you can choose to handle shipping independently. This means arranging your own shipping methods and not utilizing Depop’s shipping service. The advantage here is that you won’t incur any additional fees from Depop for using their shipping labels.
Instead, your shipping costs will depend on various factors, such as the service you choose, the destination of the item, and its weight and dimensions. However, it’s important to note that Depop requires sellers to provide a valid tracking number for their orders. This means you can’t simply choose the cheapest shipping option available if it doesn’t include tracking. You need to ensure that your chosen method provides tracking so that you can mark your orders as shipped on Depop.
Fees for Boosted Listings on Depop
Boosted Listings is a paid feature by Depop that helps sellers boost the visibility of their items to more buyers. Unlike regular Depop fees such as shipping and payment processing, Boosted Listing fees are not mandatory. You only pay them if you choose to boost your listings to make sales.
The fee for “Boosted Listings” is 8% of the total sale amount. If you sell an item for $80 through Boosted Listings, $8 will be deducted for selling fees, $3.75 for payment processing fees, and $6.4 for Boosted Listings fees. So, in total, you need to pay $18.15 in fees to Depop, before accounting for shipping.
Fees for Selling Bundles on Depop
Selling bundles on Depop doesn’t come with any special fees. Instead, it’s pretty much like selling individual items, just with a few tweaks.
First off, you’ll pay your Depop fees for each item in the bundle. When you add them all up, that’s what you owe Depop for the bundle.
Now, about shipping – there’s a neat option here. It’s called “buyer pays highest shipping price.” What this means is, when you sell a bundle, your buyer covers the shipping cost of the priciest item in the bundle. You, as the seller, foot the bill for the rest of the shipping costs.
Frequently Asked Questions (FAQs)
Does Depop charge a fee for refunds?
No, Depop doesn’t charge any fee from sellers for processing a refund. Moreover, your fees will be refunded automatically to your account.
Is Depop Payments safe?
Yes, Depop Payments is absolutely safe from buying and selling on Depop. All transactions made through Depop Payments are covered by Depop Protection.
Can you sell on Depop without a bank account?
No, you can’t sell on Depop if your account is not verified and doesn’t have a valid bank account connected.
