Depop has taken the world by storm, offering a vibrant online marketplace for fashion enthusiasts to buy and sell unique pieces. This buzzing platform presents a fantastic opportunity for entrepreneurial minds to tap into the lucrative world of reselling. But navigating the financial side of any business can be tricky, and that’s where understanding Depop fees comes into play. This blog post will equip you with all the knowledge you need to decode Depop fees and maximize your profits.
Table of Contents
- Depop’s Fee Structure – No Upfront Costs
- 10% Depop Selling Fee – The Basics
- Depop Transaction Fees – Two Payment Options
- Understanding Your Profit – A Step-by-Step Breakdown
- The Depop Fee Calculator – Your Profit Calculation Friend
- Depop Fees vs. Competitors – Are They Fair?
- FAQs – Addressing Common Concerns
Depop’s Fee Structure – No Upfront Costs
Unlike some online marketplaces that charge a fee to list your items, Depop stands out with its no-listing-fee model. This means you can stock your digital shelves to your heart’s content without paying a penny until you make a sale. This makes Depop an especially attractive option for new sellers just starting to build their online business, eliminating any initial financial barriers to entry.
10% Depop Selling Fee – The Basics
Now, let’s talk about what happens when those sales start rolling in. Depop charges a 10% selling fee on the total transaction amount, and this includes the cost of shipping.
Here’s a simple example:
You sell a vintage jacket for £20 and charge £3 for shipping. The total transaction amount comes to £23 (£20 + £3 = £23). Depop’s 10% fee would be £2.30 (£23 x 10% = £2.30). This amount is automatically deducted and paid to Depop when the buyer completes their purchase.
Depop Transaction Fees – Two Payment Options
Depop offers buyers two convenient payment options: PayPal and Depop Payments (powered by Stripe). While both options allow for seamless transactions, there are slight differences in how the transaction fees are applied.
PayPal Transactions
If the buyer chooses to pay with PayPal, you’ll be charged a transaction fee by PayPal itself. In the UK and Europe, the standard PayPal transaction fee is 2.9% of the transaction amount plus a fixed fee of 30 pence. In the US, the fee is slightly higher at 3.49% plus a fixed fee of 49 cents.
Continuing with our jacket example:
The 2.9% transaction fee on the £23 sale in the UK would be 67 pence (£23 x 2.9% = 67p). Adding the 30 pence fixed fee, the total PayPal transaction fee comes to 97 pence (67p + 30p = 97p).
Depop Payments (Stripe)
When a buyer opts to pay with Depop Payments, they can use their debit or credit card through Stripe. The transaction fee with Depop Payments is the same as the PayPal transaction fee, depending on your region.
The important distinction with Depop Payments is that Depop deducts both the 10% selling fee and the transaction fee from the total amount before transferring the remaining funds to your PayPal account. Keep in mind that this transfer from Depop to your PayPal account may take a few days to process.
Understanding Your Profit – A Step-by-Step Breakdown
Let’s break down our jacket sale to see how all the fees affect your final profit:
- Total Transaction Amount: £23
- Depop Selling Fee (10%): £2.30
- Transaction Fee (2.9% + 30p): 97p
- Total Fees: £3.27 (£2.30 + 97p = £3.27)
- Final Profit: £19.73 (£23 – £3.27 = £19.73)
As you can see, while the fees might seem like a significant chunk, you’re still left with a healthy profit for your sale.
The Depop Fee Calculator – Your Profit Calculation Friend
Calculating fees for every sale can get a bit tedious, especially when you’re dealing with multiple listings and varying price points. That’s where the Depop Fee Calculator comes in handy.
This useful tool allows you to quickly and accurately determine your profit by inputting the sale price, shipping costs, and the original cost of the item. By playing around with the calculator, you can test out different pricing strategies and ensure you’re maximizing your profits on each sale.
You can find reputable Depop Fee Calculators online with a quick Google search.
Depop Fees vs. Competitors – Are They Fair?
It’s natural to wonder how Depop fees measure up against other online marketplaces. While some platforms may have lower selling fees, they might charge listing fees or have other associated costs. Here’s a quick comparison:
- Etsy: Etsy charges lower selling fees (typically 5%) but requires a listing fee for each item you post.
- ASOS Marketplace: ASOS Marketplace typically takes a higher commission (20%) and charges a monthly subscription fee, making it a pricier option for sellers.
- eBay: eBay’s fees vary but often fall around 12%, slightly higher than Depop’s.
- Vinted: Vinted offers a unique fee structure, charging no selling fees but imposing a marketplace fee on buyers for every purchase. This approach can be particularly appealing for sellers.
Recently, Depop made significant changes to its UK fee structure. As of March 20, 2024, they removed the 10% selling fee on all newly listed items, passing this charge onto UK buyers as a marketplace fee. This strategic shift aims to empower UK sellers, enabling them to list more, sell more, and increase their profits.
Overall, while Depop fees do exist, they are generally competitive within the online marketplace landscape.
FAQs – Addressing Common Concerns
Q1: Why am I seeing two transactions in my PayPal account?
- When a buyer pays with PayPal, you’ll see two separate transactions in your PayPal account: one for the total transaction amount (minus PayPal’s fee) and another for Depop’s 10% selling fee.
Q2: How long does it take to receive funds from a Depop sale?
- If the buyer pays with PayPal, the funds (minus fees) are usually transferred to your PayPal account instantly. However, if the buyer uses Depop Payments (Stripe), the funds will be transferred to your PayPal account by Depop, which can take a few days to process.
Q3: Why do I have to pay fees on the sales tax?
- Sellers do not pay fees on sales tax. The sales tax is collected from the buyer and remitted to the relevant tax authority by Depop.
Q4: Does Depop take fees if I sell outside of the app?
- Depop’s Seller Protection policies only apply to transactions conducted within the app. Selling outside of the app is against Depop’s terms of service and can leave you vulnerable to scams and disputes.
Q5: Is there a way to reduce the fees I pay?
- One way to reduce your shipping costs is to use Depop’s shipping labels, which may offer discounted rates compared to other carriers.