The Bottom Line on Costs
Last updated: May 2026
Bottom line: The Depop fee structure substantially impacts your total selling costs, typically amounting to 10% of each transaction.As a seller on Depop, understanding the costs associated with selling is essential for maximizing your profits. The primary expense you will face is the Depop fee, which is a commission charged on every sale you create.
This fee is set at 10% of the total transaction value, including the item price and the shipping cost paid by the buyer. For instance, if you sell a vintage jacket for $50 plus $10 shipping, Depop will take a $6 fee, leaving you with $54.
Depop's fee structure is straightforward but can add up quickly, especially for high-volume sellers. This fee is separate from any other payment processing fees, such as those from PayPal, which typically charges an additional 3.49% plus $0.49 per transaction in the U.S.
As a result, if you're selling through Depop, you require to account for these combined fees when pricing your items. For example, if you make a sale totaling $60, including shipping, the PayPal fee would be approximately $2.59, along with the $6 Depop fee, bringing your total fees to $8.59.
Impact on Profit Margins
The cumulative effect of these fees can by 23% affect your profit margins. For instance, consider a scenario where you sell 100 items each month, with an average sale price of $40, including shipping. Your total sales would amount to $4,000.
From this, the Depop fee alone would be $400; assuming similar PayPal charges, you'd incur an additional $158.90 in processing fees, reducing your gross profit by $558.90.
Brands like Urban Outfitters have embraced Depop as a platform to reach younger, trend-focused consumers. However, for independent sellers, these fees can quickly erode the financial benefits if not carefully managed. Understanding and planning for these costs is essential for maintaining healthy profit margins and making sure the sustainability of your online business.
Full Cost Breakdown of Selling on Depop
| Cost Component | Percentage / Amount | Description |
|---|---|---|
| Depop Fee | 10% | This is the standard fee Depop charges on the total transaction price, including shipping. For example, if you sell an item for $50 with $5 shipping, the depop fee would be $5.50. |
| Payment Processing Fee | 2.9% + $0.30 | Charged by PayPal, this fee is applied to the total sale, including shipping. On a $50 sale with $5 shipping, this amounts to $1.74. |
| Shipping Costs | Varies | The amount sellers pay to ship the item to the buyer. For instance, using USPS for a small package might cost around $8. |
| Packaging Costs | $1 — $3 | This includes the cost of materials like boxes, tape; protective wrapping. A typical cost for a small package is approximately $2. |
| Subtotal (Example) | $68.24 | Example subtotal for a $50 item with $5 shipping, considering all above fees and costs. |
| Total Costs | $68.24 | Includes Depop fee, payment processing fee, shipping; packaging for a $50 sale. |
Understanding the Depop Fee
For instance, if you sell an item for $100, the depop fee alone will be $10. It directly impacts your profit margin. For instance, if you sell an item for $100, the depop fee alone will be $10. This fee is non-negotiable and applies to every transaction, making it essential for sellers to factor it into their pricing strategies.
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This fee is comparable to other platforms like eBay, which charges a similar fee structure. , according to Statista market research
Also, the depop fee is calculated on the total sale amount, which includes shipping. This means that sellers should be strategic about their shipping charges to ensure they are not inadvertently increasing their costs. For example, if you decide to offer free shipping, you must account for this in your item price to cover the depop fee effectively.
Many sellers on Depop, such as those with popular brands like Brandy Melville, often include the depop fee in their pricing to maintain their profit margins. By understanding and integrating this cost into your financial plan, you can ensure a more accurate and sustainable pricing strategy.
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Where Operators Lose Margin
Bottom line: Sellers on Depop can lose up to 15% of their revenue to platform fees and associated costs.When operating on a platform like Depop, understanding the impact of fees on overall profit margins is material for sellers. The standard depop fee is 10% of the sale price, which might seem manageable at first glance. However, when combined with payment processing fees, shipping costs; other potential overheads, the total deduction from a seller’s revenue can easily reach 15% or more. For instance, if a seller makes $100 in sales, they might only net around $85 after accounting for these fees. This reduction can materially affect the profitability of sellers who operate on slim margins, particularly those selling vintage or second-hand apparel where the competition is fierce, and pricing strategies must be keenly competitive.Understanding the Full Fee Structure
Depop's fee structure includes more than just the standard selling fee. In addition to the 10% depop fee, sellers must also contend with payment processing costs, which typically range from 2.9% plus a fixed fee of $0.30 per transaction when using services like PayPal. Thus, on a $50 transaction, the processing fee would amount to approximately $1.75. Coupled with the depop fee of $5, the total fees for this transaction would reach $6.75, or 13.5% of the sale price. This percentage can be even higher for smaller transactions, where the fixed processing fee represents a larger portion of the sale. Further complicating the financial field for Depop sellers is the cost of shipping. Sellers often subsidize or cover shipping costs to remain competitive, adding another layer of expense. For example, if shipping costs are $5 on a $50 item, the seller's net income drops even further, reducing their profitability. These cumulative costs highlight why maintaining a keen eye on pricing and cost management is essential for Depop sellers to safeguard their margins.Additional Overheads and Competition
Beyond the direct fees, Depop sellers face additional overheads that can erode margins. Marketing expenses, such as promoting listings through Depop’s Boosted Listings feature, can incur extra costs that are not immediately apparent. While boosting a listing can increase visibility, it also requires sellers to spend more, which can be a gamble if the increased exposure doesn't lead to proportional sales. On top of that, sellers often invest in packaging materials and may even offer discounts or bundle deals to entice buyers, which can further trim profit margins. Competition on Depop is another critical factor influencing profit margins. Brands like Urban Outfitters and ASOS Marketplace have expanded their presence in the second-hand and vintage market, attracting customers who might otherwise shop on Depop. This competition forces Depop sellers to lower their prices to stay competitive, which can diminish their earnings further. For example, a seller who initially priced an item at $60 might depend on to reduce it to $50 to attract buyers, thereby incurring higher relative fees and lower net profits.Pre-Purchase Checklist
- Research the Depop fee structure thoroughly. Depop charges a 10% fee on the total transaction amount, including shipping. Understanding this will assist you price your items competitively.
- Calculate your total potential earnings before listing an item. For example, if you plan to sell a vintage jacket for $100, remember that after the 10% Depop fee, you will receive $90.
- Consider payment processing fees. Platforms like PayPal, which is commonly used on Depop, charge approximately 2.9% + $0.30 per transaction. For a $100 sale, this would be roughly $3.20.
- Compare your pricing with similar items on Depop. Brands like Levi's often have different pricing based on condition and demand. Ensure your item is priced to sell while additionally covering fees.
- Check the shipping costs via carriers like USPS or UPS. Shipping can impact your overall profit margin. For instance, a typical USPS priority shipment may cost around $7, which you should factor into your total cost.
- Review your item descriptions and photos. High-quality images and detailed descriptions can justify a higher price, helping offset the Depop fee and other costs.
- Decide on who will bear the shipping costs. Offering free shipping might attract more buyers but remember that this will come out of your final profit. Consider adding this to your item price to cover the cost.
Understanding Depop Fee Variations
Depop fees can vary slightly depending on currency conversions and any promotional periods offered by Depop. For instance, during certain marketing events, Depop might waive a portion of the fees to encourage more listings, which can temporarily increase your profit margin. , according to Federal Trade Commission consumer guides
Calculate Your ROI with Depop Fees in Mind
The standard depop fee is 10% of the total transaction amount, which can materially affect your profit margins. aximize their return on investment (ROI). The standard depop fee is 10% of the total transaction amount, which can materially affect your profit margins.
For instance, if you sell a vintage jacket for $100, the depop fee would be $10, leaving you with $90 before other costs such as shipping. Payment processing fees are accounted for.
It is vital to consider all associated costs when calculating your ROI. For example, if your shipping cost for that same jacket is $15, and payment processing through PayPal or another service accounts for an additional 2.9% plus $0.30 per transaction, your net earnings shrink further.
On a $100 sale, this processing fee would be approximately $3.20, reducing your take-home amount to $71.80 after all fees. Brands like PayPal are often used for transactions, and their fees can add up quickly if not carefully monitored.
Breaking Down the ROI Calculation
To effectively calculate your ROI, you depend on to factor in both fixed and variable costs. Fixed costs might include the initial purchase price of the item and any shipping materials, while variable costs encompass the depop fee, payment processing fees; shipping expenses. Suppose you purchased the vintage jacket for $40.
After all costs, your profit would be $31.80, giving you an ROI of 79.5% on your initial investment of $40. This calculation shows the importance of pricing your items accurately to cover all fees and still achieve a desirable profit margin.
For sellers looking to improve their strategies, visiting the Closo blog center can deliver additional insights and tools for managing your costs effectively. Our resources can guide you through the complexities of online selling, making sure you remain competitive while maximizing profits despite the impact of the depop fee.
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