Starting online shopping means you need to learn many things, but knowing Depop fees is probably one of the essential ones if you plan on using this app. Here is all you need to know about Depop Fees.
All purchases made using the Buy button on Depop are subject to a 10% fee. This is automatically added to the total transaction cost, including shipping fees.
We’ll discuss how much those Depop fees actually cost by categorizing them in this guide. Along with demonstrating how to accurately calculate this expense, we’ll also discuss the idea of Depop fees.
How Much is Depop Fee?
Depop is a business, so it’s not just giving away its platform services for free. And since the goal is to draw customers who will shop on the website, the majority of the ways they make money are by penalizing sellers.
In light of this, we have provided a brief explanation of the main three Depop fees that you might encounter in the section below.
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What Percentage Does Depop Take?
They don’t charge listing fees (like Etsy, for instance) or monthly fees, but they do when you sell the item. If the purchase is made through their buy button, then you can be sure you won’t be getting the exact amount you sold the listing for.
In the UK as well as the US, Depop fees are 10% of the selling price (which includes the cost of the item and any associated shipping costs). It may take up to 21 days after the sale is completed for the fee to be automatically deducted from your PayPal or Depop Payments account. However, the most crucial thing to keep in mind is that this fee is in addition to any other applicable Depop fees that are described below.
Read More: Depop Vs Poshmark
Why Does Depop Charge 10%?
For sales on the platform, Depop levies a 10% selling fee. Our 10% fee is in place to maintain the functionality of the app, roll out new features, offer Buyer and Seller Protection, and pay our staff.
Depop charges you only when you make a sale, unlike many other selling platforms, so there are no fees for the time your item is listed or any upfront costs to list it.
We will reimburse you for the Depop fee if you have refunded any sales.
Contact our Support team and provide a screenshot of your PayPal refund along with confirmation of your usernames if you have refunded using PayPal. Fee refunds for returns made using Depop Payments are processed automatically.
What Percentage Do Depop Payments take?
The platform’s own payment method is called Depop Payments. In contrast to the past, when the majority of transactions were made through PayPal, they began to offer their own payment processor in 2019. Customers can now pay with their credit card, debit card, Apple Pay account, or Google Pay account by selecting Depop Payments at the time of checkout.
But one advantage they have over PayPal is that your money is available right away. To transfer funds to your bank using PayPal, you must wait for them to clear for about two weeks.
The problem is that Depop will take a cut of your sale when choosing their payment processor; otherwise, this would seem too good to be true. This sum consists of 2.9% of each sale plus an extra $0.30 (or 0.30 pounds, if you live in the UK) per transaction.
How To Calculate My Total Depop Costs?
You still need to sit down and figure out the Depop fees once you have a better idea of the kinds you’ll be considering when setting up your store. To determine the potential profit from each sold item is the main objective of this.
You can obtain that number in two different ways.
Do It Manually
Calculating them by hand is one choice. The good ol’ pen and paper, or if you’re feeling a little more modern, your phone’s calculator and the Post-it Notes app on your laptop. Even an excel spreadsheet that has been properly created and includes some clever formulas will work.
Start by making a list of every variable that might be relevant. how much you initially paid for the product, how much you charged the customer for it, how much they paid you to ship it, and how much they paid you to ship it. Naturally, Depop fees and, if applicable, PayPal fees are also significant.
Then, add the amount you charged (basically, the amount you charged your customer), and deduct everything else. Your anticipated profit will be the final result.
Do It Via Apps
You could also use an app to calculate your Depop fees if you want to take a more technologically oriented approach. It’s a good idea to use one like this one from Selleraider. It’s essentially a calculator made by a pretty reputable company specifically for Depop.
You can tell that Selleraider gave their calculator a lot of thought since it was created with the goal of making selling on marketplace platforms simple and effective. Items’ costs, shipping costs, and the percentages that Depop and other parties (like PayPal) take are all input table. When Selleraider’s calculator tool completes its task, wham! You can see your potential profits right in front of you.
Are Depop Fees Actually Fair?
Depop gives you access to thousands of potential customers in one location, so that depends. Running your business will be a breeze thanks to the platform’s countless apps, integrations, and features. They offer “free” marketing in the sense that you don’t need to do much to attract viewers, and they’re an established and credible selling platform. If you had to start over from scratch on your own, you would have to work at all of these essential things.
It’s also true that they sometimes charge hefty fees, though. Much higher financially than if you had done your own research, education, and implementation. However, to do all of that, you must have the time. It is therefore important to consider whether Depop fees are reasonable for the company you are running rather than whether they are fair as a general principle. If this is a side job of yours? You get to save time in exchange for money, so they’re reasonable. If you could devote more of your time to the process? It might be a good idea to start small and gradually expand on your own before closing your Depop store and starting your own business.
Final Words on Depop Fees
It can be quite exhausting to handle everything on your own. But over time, when you have more and more sales and valuable customers that keep coming back and leaving positive reviews, it will all pay off.
As a seller on one of the most well-known platforms, you should be aware of the fees you must pay in addition to how cross-listing software functions and all other tips and tricks.
For more information, check out our guide on Depop Reviews.
FAQs
How to Avoid Depop Fees?
Your best option since there is no way to avoid Depop fees is to request the fee waiver in an appeal.
What is Depop Limited on PayPal?
Your credit card, bank account, or Paypal information are not accessible to Depop, and the company is unable to ever collect any payments from you without your permission.
Why Did Depop Charge Me for Shipping?
Depop will automatically apply a 10% fee to the entire transaction, including shipping costs, when you sell an item.
