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Depop Removes Selling Fees in the United States

Depop Removes Selling Fees in the United States

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In a bold move that’s set to shake up the secondhand fashion market, Depop removes selling fees in the United States. This change, effective immediately, means Depop sellers will no longer be charged 10% seller fees and they will keep more money from each sale.

The decision aims to empower Depop’s growing community, helping sellers to earn more from their sales. It’s also expected to offer better value and more choices for buyers, while encouraging new Depop users to join the “secondhand revolution.”

secondhand revolution

This seller fees update comes at a time when the resale industry is booming. More and more fashion consumers are now realizing the value of unused items in their closets. In fact, the average Depop seller in the U.S. made over $450 in their first year on the marketplace.

Depop’s popularity is on the rise, especially among young consumers. It ranked as the 4th most popular online shopping site for U.S. upper-income teens in Spring 2024. This trend reflects the growing Depop community, which has given a second life to over 80 million items since the Depop’s launch.

The removal of selling fees is part of a larger update to Depop’s fee structure. While sellers will benefit from zero fees, buyers in the U.S. will see the introduction of a small marketplace fee starting July 18, 2024. This fee will help Depop continue to invest in improving its platform.

It’s important to note that while selling fees are being removed, there are some conditions. The zero selling fees only apply to sellers located in the U.S. and to sales made in U.S. dollars. The usual payment processing fee will still apply.

As for the new marketplace fee starting July 18th, 2024, it will be up to 5% of the item purchase price, plus a fixed amount of up to $1. This fee won’t include taxes or postage costs.

Depop Fees Update

Also Read: Ebay Drops Fees For Selling Pre-Owned Clothing

Moreover, Depop plans to use this fee to support various aspects of its business. This includes enhancing Depop Protection, improving customer support, making platform upgrades, and growing the community. The goal is to create a dynamic marketplace that makes it easier for people to participate in the circular economy.

According to Depop CEO, Kruti Patel Goyal:

“This change will give sellers more cash in their pocket from each sale, empowering our existing community – as well as those who may be new to resale – to list more, sell more and earn more while contributing to a more circular fashion system.”

This fees change in the U.S. follows a similar move in the U.K. market earlier this year. Depop has been working hard to improve the experience for both buyers and sellers throughout 2023 and beyond.

Some of the improvements Depop has made include:

  1. Making search more efficient: Buyers are now 42% more likely to find an item they want to buy through search.
  2. Improving search recommendation: The platform now offers smarter recommendations, making buyers 54% more likely to view a suggested product.
  3. Making support better: Depop has achieved a 40% improvement in resolution time for support inquiries and a 48% improvement in average response times.
  4. Improving marketplace features: New features like Send Offer and Boosted Listings have been launched, with a 70+% increase in product development speed.
  5. Making listing process easier: AI-powered autofill listings have made it faster and easier for users to create listings, offering more choice and variety for buyers.

Depop’s decision to remove selling fees is a significant move. By allowing sellers to keep more of their earnings, Depop is positioning itself as an attractive marketplace for those looking to make money from their unused fashion items.

This change could potentially lead to more sellers joining the platform, which in turn could result in a wider variety of items available for buyers. It’s a win-win situation that could help Depop grow its user base and strengthen its position in the market.

The introduction of the marketplace fee for buyers is a balancing act. While it may slightly increase costs for purchasers, the fee is designed to fund improvements that will enhance the overall Depop experience. If these improvements lead to a better, more efficient platform, buyers may find the small fee to be worth it.

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