Depop, the recommerce online fashion marketplace Etsy acquired last year, is increasing its transaction fees for US sellers on January 5, 2023.
Check Out These Resources
- Do you need a business bank account for your online business? Take a look at our review of the five best bank accounts for sellers, some of which are free with no minimum balance or deposits. [sponsored]
- Boost your social media engagement with Publer. Learn how you can save time writing engaging content faster with AI. [sponsored]
- Could your online business use capital for growth? Here is a primer on revenue-based loans, and how they work.
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?
Subscribe to Our Newsletter
We do not sell your information.
You can unsubscribe at any time.
Head over to our Facebook Group for Small Business Marketplace Sellers and interact with us and other small business owners. Follow us on Facebook, Twitter, or LinkedIn to stay up to date with relevant news and business insights for your online business.