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Etsy Owned Depop Hikes Transaction Fees for US Sellers Starting January 5, 2023

Depop, the recommerce online fashion marketplace Etsy acquired last year, is increasing its transaction fees for US sellers on January 5, 2023.

The company will increase the transaction fee from 2.9% + 30 cents/sale to 3.3% + 45 cents/sale but is keeping the Depop Fee (or selling fee) at 10%.

The transaction fee for PayPal transactions remains 3.49% + $0.49.

Depop charges a transaction fee on top of the selling fee to cover the costs of processing a payment from the buyer.

In short, sellers will pay 13.3% of the total sale, plus a 45 cents flat rate per transaction, when using Depop Payments.

“Card companies have increased the fees they charge Depop for processing payments. While we’ve kept our payment processing fee the same since introducing Depop payments, it’s become increasingly more expensive to process payments. For this reason, we are increasing the transaction fee in the US,” Depop said in its announcement.

New Depop Transaction Fee Example

Assuming a Depop seller sells an item for $50, the company will charge a $5 selling fee. With the new transaction fee being $2.10, the proceeds from the sale on January 5 and beyond will be $42.90 versus $43.25 now.

In the big scheme of things, this is not much of an increase. And considering the huge 30% fee increase Etsy sellers had to absorb earlier this year, this one is peanuts.

But is this just the beginning?

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