How Does Depop Work in 2025? The "Zero Fee" Myth

How Does Depop Work in 2025? The "Zero Fee" Myth

I still remember the day Depop announced they were removing selling fees for US and UK sellers. I was sitting in my car outside a thrift store, refreshing my email, and I literally fist-pumped. "Finally," I thought. "I get to keep the entire $45 for this vintage Carhartt jacket."

I listed it. I sold it. And when the payout finally hit my bank account ten days later, it wasn't $45. It was $38.12.

I stared at the screen, doing the mental math. Where did the money go? I hadn't boosted the listing. I hadn't offered free shipping. It turns out, "No Selling Fees" is a marketing headline, not a financial reality. Between the mandatory payment processing fee and the way transaction totals are calculated, money was still leaking out of my pocket.

If you are trying to figure out how does depop work in 2025, you need to look past the "easy money" hype. The platform has undergone a massive overhaul—killing PayPal for US sellers, introducing AI shipping adjustments, and making "Boost" fees stickier than ever.

The "Zero Fee" Reality Check

Let’s get the biggest confusion out of the way first. Depop.fee structures changed radically in late 2024.

  • Old Way: You paid a flat 10% selling fee on everything.

  • New Way (US & UK): You pay 0% selling fees on new listings.

But "No Selling Fee" does not mean "Free to Sell." You are still paying for the privilege of accepting money.

The Mandatory Cost: Payment Processing

This is the fee everyone forgets until they see their payout receipt. Whether the buyer pays with Apple Pay, a credit card, or Depop Balance, the transaction has to be processed. Depop uses Stripe for this, and they pass that cost directly to you.

The Math (US Sellers):

  • Fee: 3.3% of the total transaction + $0.45.

  • "Total Transaction" means the item price + shipping + sales tax.

Here’s where it gets interesting... if you sell a shirt for $20 and the buyer pays $8 shipping + $2 tax, the total is $30. Your 3.3% fee is calculated on the $30, not the $20. So, roughly $1.00 + $0.45 = $1.45. That’s nearly 7.5% of your item's sale price, gone just to move the money.

(Note: If you are selling from Australia or outside the US/UK, you likely still pay the flat 10% selling fee plus PayPal fees.Always check your local terms.)

The PayPal Breakup: How Do You Get Paid on Depop?

If you are a returning seller from 2020, you are probably looking for the "Connect PayPal" button. Stop looking. It’s gone.

For sellers in the US and UK, Depop PayPal integration is dead. Depop now mandates Depop Payments (powered by Stripe).

Why this matters for your cash flow:

  1. No Instant Cash: With PayPal, money hit your account instantly. With Depop Payments, the payout schedule is slower.

  2. The 10-Day Wait: For new sellers, payouts are often held for 10 working days after the sale to prevent fraud. Once you establish a track record, this drops to 2–3 days after tracking shows "Delivered."

  3. The "Negative Balance" Trap: If you issue a refund before your payout clears, Depop will pull the funds from your connected bank account. If your bank account is empty, your Depop Balance goes negative, freezing your ability to sell until you top it up.

My Honest Failure: I sold a bundle of jeans on a Friday. The payout was scheduled for the following Wednesday. I shipped them Saturday. On Monday, the buyer asked to cancel because she used the wrong address. I refunded her. Because the payout hadn't cleared yet, Depop tried to pull the refund amount ($80) from my bank account. I keep that account lean for business expenses, so the charge bounced. I got hit with a $35 overdraft fee from my bank. Lesson: Keep a buffer in your linked bank account. Depop Payments does not float you the cash.

Shipping: The AI Override Nightmare

We can’t talk about how to sell clothes on depop without addressing the shipping tiers. Depop wants you to use their "Ship with Depop" labels (USPS in the US, Evri in the UK) because it’s trackable and insured.

2025 Depop Shipping Tiers (US Approx):

  • Extra Small (XS): Under 4oz (Accessories) - ~$4.49

  • Small (S): Under 8oz (T-shirts) - ~$5.49

  • Medium (M): Under 1lb (Jeans/Dresses) - ~$7.99

  • Large (L): Under 2lb (Jackets/Boots) - ~$12.29

  • Extra Large (XL): Under 10lb - ~$13.99

Now the tricky part... The AI Adjustment. Depop has introduced AI that "scans" your listing description to suggest a weight. I listed a pair of heavy leather boots. I manually selected "Large" shipping. When the item sold, I went to print the label. The label said Small (8oz). The AI had seemingly overridden my selection because I used the word "lightweight" in the description (referring to the sole, not the boot).

The Result: I had to pay the difference at the post office counter, which cost me an extra $9 out of pocket because you cannot upgrade a Depop label—you have to buy a whole new one. Advice: Always double-check the label weight beforeyou tape it to the box. If it’s wrong, contact support immediately (don't ship it yet).

The "Boost" Trap: 8% vs. 12%

Depop’s "Boosted Listings" feature puts your item in special tiles in search results. It works, but it’s sticky.

The Fee:

  • US: 8% of the total sale price.

  • UK: Recently hiked to 12%.

The 28-Day Rule: This is where sellers get burned. If a buyer clicks on your boosted item, looks at it, and decides not to buy... but then comes back three weeks later to buy it after you have turned off the boost, you still pay the fee. The attribution window lasts for 28 days. You cannot "game" the system by un-boosting right before a sale.

I use Closo to automate checking my pricing against competitors – saves me about 3 hours weekly – so I can price my items competitively enough that I don't need to rely on boosting to get sales.

Step-by-Step: How to Sell Clothes on Depop (The Safe Way)

If you are ready to list, here is the workflow that protects you from the most common issues.

  1. Photos First: Depop is visual. Flat lays work, but modeled shots (or "hanger against a clean wall") perform better. Do not use stock photos; Depop is cracking down on copyright and will ban accounts for it.

  2. Description SEO: Don't just write "cute top." Write "Vintage 90s baby tee, ribbed cotton, fairycore style." The search algorithm relies on these keywords.

  3. Select Shipping Manually: Do not let Depop "estimate" shipping. Weigh your item. If it is 15.9oz, it is not a Medium (under 1lb) once you add the box. Round up to Large.

  4. Connect Bank Account: Ensure your "Depop Balance" is linked to a valid checking account, or you will never see your money. How do i connect paypal to depop? If you are in the US/UK, you don't. You connect your bank routing number.

People always ask me...

"Can I just use my own shipping labels?"

Common question I see. Yes, you can choose "Arrange my own shipping."

  • Pros: It is often cheaper. You can use services like Pirate Ship to get commercial rates (e.g., shipping a 1lb item for $6 instead of Depop's $8).

  • Cons: You are responsible for entering the tracking number manually immediately. If you forget and the buyer claims "Item not received," you lose the case automatically. Depop's seller protection relies heavily on valid tracking being in the system.

"Why is my money on hold?"

People always ask me this. If you see "Payment Pending," don't panic. Depop holds funds until the tracking scans as "Delivered." If you didn't use a tracked label (risky!), or if the carrier missed a scan, the funds can be held for 10 working days.

  • Tip: Always get a receipt at the drop-off counter. That initial "Accepted" scan starts the clock on your payout.

Conclusion

So, how does depop work in 2025? It works like a business, not a garage sale. The days of snapping a blurry photo, getting paid instantly on PayPal, and throwing it in a mailbox are over.

To succeed now, you need to be a logistics manager. You need to verify weights to avoid AI overrides. You need to manage your cash flow to handle the 10-day payout delay. And you need to be strategic about Boosting so you don't erode your margins.

But despite the friction, Depop remains the king of Gen Z fashion. The audience is there, and they are willing to pay a premium for the right vintage look. Just make sure you price your items high enough to cover the "invisible" costs of processing and shipping.

If you are looking to expand your reach beyond Depop, check out our guide on cross-listing strategies for 2025. And once you start moving volume, you'll need to know how to organize your inventory system so you never lose a sale to a misplaced item.

FAQ Page Schema

Here's something everyone wants to know: Does Depop charge a monthly fee? No, Depop does not charge a monthly subscription fee to have a standard seller account. Listing items is free. You only pay fees when an item sells (the payment processing fee and optional boost fee).

Common question I see: Can I sell on Depop if I am under 18? Yes, but with restrictions. You must be at least 13 years old to use the platform. However, to set up Depop Payments (Stripe) or PayPal, you typically need to be 18. Most teen sellers link a parent or guardian's bank account (with permission) to receive payouts.

People always ask me: Is Depop safer than Poshmark? They are comparable, but the protection models differ. Poshmark holds funds until the buyer accepts the item (3-day window), offering strong protection for buyers against "not as described" items. Depop releases funds based on delivery, which can sometimes be faster for sellers but requires strict adherence to tracking rules to stay protected. Both are safe if you keep transactions on the app.

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