the fee structure on Depop may vary depending on the specific circumstances of each transaction. Sellers can easily promote their store on social media platforms such as Instagram, Twitter, or TikTok, which can help to attract more followers and drive traffic to their store. Reddit and its partners use cookies and similar technologies to provide you with a better experience. Heres why I chose it, and, based on my interviews with a couple of expert sellers, some helpful tips to get you started, too. Overall, operating on Etsy is an affordable way for small business owners to sell their products, with the transaction and payment processing fees being relatively low. At the end of the day, people just want to know theres a decent human being on the other end of the transaction. Ultimate Guide, 15 Urban Outfitters Alternative: Complete List 2023, Tania Speaks Eyebrow Gel Reviews 2023 (With Pros & Cons), How to Even Skin Tone on Face? Sellers like Bella McFadden, who resold clothing from thrift stores on Depop and now runs a stand-alone company and a YouTube channel, became social media influencers and tastemakers in their own right. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Last year, she joined Instagram. To do this, USPS uses the Automated Package Verification (APV) System, which will automatically charge your Pirate Ship account for any postage owed. Try moving your iPhone and charger to a cooler location. Only now are rising brands succeeding in making sustainable second-hand fashion cool. Why PayPal Raised Its Processing Fees - The Motley Fool It takes time to build up a following. While your package is en route, USPS will verify that you've purchased the correct amount of postage for your package. When you sell a Bundle on Depop, your fees and label will be deducted per item sold rather instead of a single amount. But, over time, some Depop sellers began looking to grow their businesses beyond the app. Incentivizing your potential customers with free shipping may seem like a simple and effective way to get them to buy, but shipping heavy (and costly) items like shoes could eat into your profit more than you anticipated. Depop charges a fee on each item sale that is made through their platform. This can be a little confusing for some sellers as the commission includes the shipping cost, unlike other platforms that only charge the commission on the item price. I did the math on all of them and received less than what the app says I would receive after 10 percent on every single order. Its always been important, says Raga of sustainability. It is also advisable for sellers to keep track of their expenses and profits on Depop to ensure that they are maximizing their profits and not losing money on each sale. We independently review everything we recommend. For items that sell for less than $15, Poshmark charges more than Depop. Even an excel spreadsheet that has been properly created and includes some clever formulas will work. The standard transaction fee for selling on Depop is 10%, which includes both the items cost and shipping fees. Take up to four photos. Depop Business Model | How Does Depop Make Money? Overall, it is important for both buyer and seller to be clear on the shipping costs associated with any given transaction on Depop. Now Poshmark might be the perfect place to sell your mainstream staples from Zara or Gap, TheRealReal has your love of designer labels covered, and ThredUp reaches both ends with brands like J.Crew and Kate Spade being sold. Naturally, Depop fees and, if applicable, PayPal fees are also significant. Here's How to Sell on Depop, According to Top Sellers - The Penny Hoarder Limited edition sneakers, apparel, and accessories from brands like Nike, Adidas, and Supreme are highly sought after and often resold for more than their original retail price. Apple Pay and Google Pay don't charge any merchant fees, since they're considered "card present" transactions, but merchants still need to pay the underlying credit card's swipe fee of about 1.3%-3.5%. Depop shipping, also known as Depop Delivery, is a service offered by the platform that allows sellers to purchase and print shipping labels directly from their Depop account. Rhi Dancey, a clothing designer in London, estimated she now gets one order on Depop for every 10 orders on her website. A year after that, my first job out of college happened to be a copywriter position for an online luxury-fashion retailer. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Home; Service. 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. The good news is, the fees for selling on Depop are relatively low compared to other platforms and are straightforward, making it easy for sellers to calculate and manage their expenses. After shipping costs, I reclaimed roughly $20. If You Do This, You Won't Have to Worry About Them, 1 Trillion-Dollar Growth Stock Down 28% You'll Regret Not Buying on the Dip, Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Copyright, Trademark and Patent Information. A little prodding revealed that my friend planned (but rarely followed through) on selling their old clothing, often through online marketplaces. _jordxn_ 2 yr. ago I still have the Depop shop because I dont see the harm in having it, Ms. Dancey said. Fee refunds for returns made using Depop Payments are processed automatically. For sales above $20, the seller is charged 10% for the first $20 plus a 5% commission on the rest. Facts to Know, How Much is a Gel Manicure? This article is more than 5 years old. The key to making a lot of money on Depop is to build a strong and loyal following by creating a unique brand and style. Facts to Know, How to Do Bubble Braids? Overall, while there is a fee to sell on Depop, it is a standard practice among online marketplaces and is relatively low compared to other platforms. Try modeling the clothes you want to sell. In June. If you're looking to sign up for or use Depop, the online marketplace for buying and selling used goods, there are a few things you need to know before getting started. You are viewing the PayPal Community Archives. 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. Living in New York City as a college student in 2018 during an endless blue-gray winter was like being dropped off at an amusement park with no money to enjoy the rides. Instead of thinking about how I would look wearing a new outfit, Im wondering what I could resell it for. We then have to be more interesting for the next group of people we want to cultivate, he said. Brianna Lopez, who has a Depop shop called That Valley Girl, said she struggled to connect with the customers on the app. The fees will be deducted before your funds are processed into your account. Why did Depop charge me more than 10? This commission fee is taken out automatically during the payment process, and the remaining balance is deposited into the sellers account. after it offered me to print the labels (in order to speed up the process of money release), it's still going to be 21 days from the day of purchase. However, the most crucial thing to keep in mind is that this fee . My wardrobe staples are mostly basics like leggings, jeans, coats, T-shirts, and shoes, with a couple of statement pieces that I swap in and out every season. In order to list items for sale, Depop charges a fee of 10% of the total transaction value. When Shirley Tang started selling handmade clothing in 2020, she knew just where to do so online: Depop, an app at the forefront of social shopping. Other Gen Z designers are spending far less time on their Depop store these days. Its revenue more than doubled to $70 million in 2020 from a year earlier. I'm so confused about this and tried to contact them but haven't heard back. In the meantime, make sure you're staying in the green. If a seller uses other optional services provided by Etsy, such as promoted listings, Etsys additional fees will vary, depending on the service used. Follow these six shopping tips to become a savvier shopper, save yourself money, and limit your environmental impact. You can obtain that number in two different ways. Our community comes first. Both platforms offer unique features and benefits to sellers and buyers, but when it comes to pricing, its important to understand how each platform charges for their services. Scan this QR code to download the app now. Thanks to our tiny living spaces, hanging out with a girlfriend usually required sitting next to a pile of junk on the bed or quietly shifting a trash bag of unwanted clothes to the other side of the sofa. Apple Pay's number of activated users rose from 441 million to 507 million between September 2019 and September 2020, according to Loup Ventures. This means that if you sell an item for $100 and charge $10 for shipping, Depop would take a $11 commission from the total sale price, leaving you with $89 as the seller. But no one wanted to get into it because there was a big stigma around second-hand.. That's why we have a dedicated seller team who'll help you with anything from learning the basics to mentoring you to become a Top Seller. charges a 10% commission for every sale made through the BUY button. brevard county housing authority application. Depop US top seller Sydny Boney. However, Depop does charge a sales fee of 10% of the total sale price, including the shipping cost. Like therapy or nosy relatives, a little objective feedback can help point out flaws you would otherwise never catch. By 2015, Mr. Semple said, Depop was benefiting from Gen Z coming online and was building its platform to be more interactive. Depop will automatically apply a 10% fee to the entire transaction, including shipping costs, when you sell an item. you would actually kill in this, an Instagram user commented on the post, tagging a friend. +(91)-9821210096 | a streetcar named desire genre. All purchases made using the Buy button on Depop are subject to a 10% fee. As a subscriber, you have 10 gift articles to give each month. Required fields are marked *. In addition to these two fees, Depop also charges for other optional services, such as promoting your item to reach a broader audience, premium placement in the search results, and a reduced transaction fee for sales higher than $50. They offer free marketing in the sense that you dont need to do much to attract viewers, and theyre an established and credible selling platform. On June 2, 2021, it was announced that Etsy, an American e-commerce platform focused on handmade and vintage items, would acquire Depop in a deal worth $1.6 billion. Items costs, shipping costs, and the percentages that Depop and other parties (like PayPal) take are all input table. Depop may not be of such strategic importance to the UK economy as the likes of Arm, or fellow chip-maker Imagination Technologies, both bought by foreign buyers. But I dont own any designer clothes, so these options werent a fit for me. So even though PayPal says ". Physical meetups also help bring Depop users together (its Community Leadership Programme invites top sellers to help others through meetups and workshops), and it even opened its first physical space in L.A. this year. To determine the potential profit from each sold item is the main objective of this. Sydny Sky, Depop seller, phone interview, October 28, 2020. Your email address will not be published. Using Depop shipping can have its advantages. Make money to buy new-to-you ones. Make money. When Selleraiders calculator tool completes its task, wham! Depop said it had 30 million registered users last year, up from 13 million in 2019. Etsy buys secondhand clothing app Depop to tap into gen Z Olivia Mouradian is an Opinion Columnist and can be reached at [email protected]. This percentage is deducted from each sale, meaning that if you sell an item for $100, $10 will be deducted as a fee by Depop, and you will receive $90 as the final sale amount. Depop charges a 10% selling fee for sales on the platform. On the other hand, using your own shipping method can also have its benefits. Its also a good place to keep yourself motivated and promote your page to other enthusiastic Depop fans. This feature is optional and costs an additional 2.9% of the total sale price, including shipping. However, if the seller and/or the buyer are located outside of the United States, the commission rates may differ based on the location of the parties involved. Its also true that they sometimes charge hefty fees, though. Instead, they should keep an eye on its churn rate to see if it was the right move. Cost basis and return based on previous market day close. When you buy through our links, we may earn a commission. As a general rule, its best to offer free shipping promotions on lightweight items like dresses or shirts but to avoid it on heavier things such as shoes or winter coats. More than 90% of Depops 30 million users are under 26 (Etsy average age is 39) and it is the 10th most visited site in the US. Alternatively, some sellers on Depop may offer free shipping as a promotional incentive to attract buyers. Read more about how Boosted Listings works here. A stylist who was out of work at the beginning of the pandemic, she began her eponymous business on Depop in March 2020 and amassed 36,000 followers. Additionally, Depop shipping can offer discounted shipping rates, since the platform has negotiated rates with shipping carriers.