I still remember the "pallet panic" of January 2023. We had just cleared our holiday return backlog, processing nearly 8,000 units in three weeks. We were sitting on about $120,000 worth of inventory that was technically "new" but couldn't go back on our Shopify store because the polybags were torn or the hangtags were missing.
My CFO asked, "Can't we just liquidate this?"
In the old days, we would have sold it to a jobber for pennies on the dollar. Instead, we looked at Depop. We realized that our core demographic—Gen Z shoppers who buy full price—were the exact same people hunting for deals on this app.
We ran a pilot test. We listed 500 "imperfect" items on Depop. They sold out in 48 hours. But the operational cost was a nightmare. We had three warehouse staff manually tapping on iPhones because we didn't understand the platform's limitations.
If you are a brand operator asking what is depop, the answer isn't just "a resale app." It is a high-friction, high-reward liquidity channel that requires a completely different logistics strategy than your main site.
The Platform Anatomy: More Than Just "Used Websites"
To understand what is depop app really, you have to stop thinking of it like Amazon or eBay. It behaves more like Instagram.
The interface is image-heavy, feed-based, and relies on "social signals" (likes, follows, and shares). For a DTC brand, this is jarring. On Shopify, you drive traffic via ads. On Depop, you drive traffic by refreshing listings and engaging with the community.
Here is where ops breaks...
When we first started, we treated Depop like a static catalog. We uploaded 100 items and walked away. Two weeks later, we had zero sales. We realized that Depop's algorithm prioritizes recency. If you aren't interacting with the app, your products are invisible.
This forced us to change our staffing model. We couldn't just have a packer list items; we needed a "social seller" who understood that is depop legit isn't the question buyers ask—they ask "is this seller active?"
The Financial Model: Fees and "Depop Balance"
If you are trying to resell clothes profitably, the fee structure is the first thing you need to master.
Historically, Depop charged a flat 10% fee. However, in a massive shift in July 2024, they removed selling fees for new listings in the US and UK markets.
The Math for Operators:
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Old Model: Sell a jacket for $50 -> Pay $5 (10%) + Processing Fee.
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New Model: Sell a jacket for $50 -> Pay $0 Selling Fee + Processing Fee.
But here is the "fine print" that trips up finance teams. The what is depop balance question comes up constantly during reconciliation.
Depop doesn't payout to your bank immediately like a credit card processor. The money sits in a "Depop Balance" inside the app until the item is marked as "Delivered" in the tracking system (plus a few days for safety).
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Anecdote: In Q4 2023, we had $18,000 sitting in our Depop Balance that we couldn't access because our warehouse was slow to scan packages. The cash flow drag was real. We had to implement a strict "scan-on-ship" policy using ShipBob integration to ensure tracking updated instantly, unlocking our funds 3 days faster.
Is Depop Reliable for Enterprise Volume?
When executives ask me " is depop reliable for moving 5,000 units?" I have to be honest.
The platform is stable, but the tools are primitive compared to what we are used to.
There is no open API for brands to plug in their inventory. You cannot simply "push" products from your ERP to Depop.
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The Failure: We tried to sync our inventory using a third-party scraper tool. It broke every time Depop updated their front-end code. We ended up overselling 15 items because the sync lagged by 4 hours.
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The Workaround: Depop now offers a "Bulk Listing" tool via their web interface where you can upload a CSV. It’s clunky—you have to use their specific Google Sheet template—but it beats tapping on a phone.
If you are a brand, reliability comes from your own processes, not the app. We use Loop for returns management, and we segregate "Depop Inventory" physically in the warehouse to prevent it from getting mixed up with new stock.
Buyer Protection and the "Scam" Fear
A common question I get from customer service leads is: " Is depop safe or are we going to get chargebacks?"
Depop has a robust program called Depop Buyer Protection. If a buyer claims an item wasn't received or isn't as described, Depop mediates.
For a brand, this is a double-edged sword.
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The Good: It builds trust. Buyers feel safe spending $100 on a used item.
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The Bad: The burden of proof is on you.
We had a case where a buyer claimed a "Vintage Tee" was a fake. It was actually a reissue we produced in 2021. Depop sided with the buyer initially because our listing didn't explicitly say "Reissue." We lost the item and the money.
Now, we photograph the inner tags of every single item to prove authenticity. It adds 30 seconds to the listing process, but it saves us thousands in lost disputes.
What is Repop on Depop? (The Circularity Hack)
One of the most unique features is what is repop on depop.
"Repop" allows a buyer to re-list an item they bought from you with a single click, using your original photos and description.
Why Brand Operators Should Love This: It reduces returns. If a customer buys a dress from your Depop shop and it doesn't fit, they often ask for a return. Returns are expensive—about $27 in processing costs for us.
Instead of accepting the return, we encourage them to "Repop" it. We message them: "Hey! Since we don't accept returns on final sale items, you can use the Repop feature to sell it to someone else using our professional photos."
It turns a potential negative customer experience into a micro-business opportunity for them. We have seen a 15% drop in return requests on our resale channel since we started educating buyers on this feature.
Comparison: Warehouse Liquidation vs. Depop Resale
Is it worth the hassle? Here is the breakdown of how we view the unit economics of selling a returned hoodie.
The margin is undeniable. Even with the higher labor cost of clothes reseller workflows, Depop recovers 8x more cash for the business than traditional liquidation.
Enterprise Tools We Use to Manage the Chaos
Since Depop lacks a native enterprise suite, we have to cobble together our own stack.
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Cross-Listing Software: We use tools like Vendoo or List Perfectly to manage listings. These allow us to create a "master" listing and push it to Depop, Poshmark, and eBay simultaneously. (Though be warned: Depop’s bot detection hates automation, so we use these tools manually).
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Shipping: We use Pirate Ship for labels because Depop’s native shipping can be expensive for heavy items. We integrate Pirate Ship with our label printers to speed up the pack line.
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Returns: We route eligible returns locally via return hubs instead of sending everything back to the warehouse—cutting return cost from ~$35 to ~$5 and speeding refunds.
Operators always ask me: Do I need a separate phone for Depop?
Technically, no. You can list from the web now.
Practically, yes. The desktop version of Depop is improved, but the messaging system is still optimized for mobile. If a buyer asks for a specific measurement, your warehouse team needs to be able to snap a photo and reply instantly.
We have a dedicated "Ops iPad" mounted at the packing station. It is logged into the brand Depop account. This keeps the notifications out of our personal phones and ensures that whoever is on shift can handle the customer service.
Common question I see: Is Depop legit for luxury brands?
There is a stigma that clothing resale apps are just for cheap thrift finds.
That is changing. We are seeing luxury brands use Depop for "Archive Sales." It is a way to dump old inventory without diluting the prestige of the main website.
If you put 2019 inventory on your main site at 70% off, it looks desperate. If you put 2019 inventory on Depop as a "Vintage Archive Drop," it looks cool.
We launched a "Sample Sale" on Depop last summer. We sold prototypes that were gathering dust in the design studio. The "scarcity" factor drove the prices higher than retail. It proved to me that the depop reviews and community sentiment are driven by hype, not just price.
Conclusion
So, what is depop? For a consumer, it's a cool place to find vintage tees. For a brand operator, it is a high-maintenance, high-margin liquidation channel that connects you directly to the next generation of consumers.
It is not "set it and forget it." It requires labor, attention, and a tolerance for clunky software. But when you see the recovery rates on inventory that would otherwise be trash, the ROI is obvious.
The key is to start small. Don't dump 10,000 SKUs at once. Pick a category of returns—maybe your denim or your outerwear—and build a workflow around it.
If you are looking to professionalize your resale operation, I highly recommend checking out the Closo Brand Hub. They have deep-dive guides on how to structure your team for resale logistics so you aren't burning out your warehouse manager on manual data entry. Also, look into their resources on Return Hubs to solve the logistics of getting the inventory in the first place.
FAQ
Operators always ask me: Can I connect Shopify directly to Depop?
No, there is no native "one-click" integration between Shopify and Depop as of 2025. You cannot sync inventory automatically without using third-party cross-listing tools like Vendoo or a custom API scraper, which can be risky. Most brands use the CSV bulk upload feature on Depop's web portal to move data.
Common question I see: Does Depop report to the IRS?
Yes. Since the Depop balance is real income, Depop is required to send a 1099-K form to any seller who grosses over the IRS threshold (which fluctuates but is generally around $600 or $5,000 depending on the current tax year legislation). Your finance team needs to treat this as a legitimate revenue stream, not "petty cash."
What is the difference between Depop and Poshmark for brands?
Depop is younger (Gen Z), focuses on streetwear/vintage visuals, and has lower fees (0% selling fee). Poshmark is older (Millennials/Gen X), focuses on mid-tier brands (J.Crew, Madewell), and has higher fees (20% flat). For trendy or streetwear brands, Depop is usually the better fit for liquidity.
