I still remember the first time I sold a "grail" item on Depop back in 2017. It was a vintage 1990s windbreaker that I had thrifted for five dollars. I listed it for $80, and it sold within two hours. I was ecstatic. In my head, I had just made a $75 profit. I was already mentally spending that money on dinner and a new pair of sneakers.
Then the notifications started hitting my phone. First, the transaction fee. Then, the platform commission. Then, the shipping overage because I had guessed the weight wrong. By the time the dust settled and the money actually hit my bank account, that $75 profit had shrunk to about $58.
It was still a good flip, don't get me wrong. But it was a wake-up call.
I realized then that revenue is vanity, and profit is sanity. If you don't understand the fee structure down to the penny, you aren't running a business; you are just moving clothes around the country for free.
The Evolution of Depop Fees for Selling
For years, the math was simple, even if it was painful. How much does depop take? The answer was always a flat 10% of the total transaction (item price + shipping costs). This was the standard "tax" for accessing their marketplace of millions of Gen Z buyers.
But recently, the landscape changed. In an effort to compete with platforms like Vinted and Poshmark, Depop made a bold move: they removed the selling fee for sellers.
Now the tricky part is understanding what "removed" actually means.
When I first heard the news, I thought, "Great, I get to keep everything." I was wrong. While the specific 10% commission is gone for new listings, the financial ecosystem of the app has just shifted the costs elsewhere. The platform introduced a "Marketplace Fee" that is charged to the buyer (up to 5% + a fixed amount).
While this sounds great for us as sellers, it changes the psychology of pricing. If a buyer sees a $50 jacket, they now have to mentally add shipping plus a marketplace fee plus taxes. This means we, as sellers, have to be more competitive with our listing prices to ensure the buyer still converts at checkout.
The Hidden Killer: Payment Processing Fees
Even with the 0% selling fee, you cannot escape the banking system. This is where most new sellers get confused.
Whether you are paid via Depop Payments (which uses Stripe/Apple Pay) or through PayPal, there is a transaction fee. You are paying for the privilege of accepting a credit card.
Here is the breakdown I keep on a sticky note on my monitor:
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Depop Payments: Roughly 3.3% of the transaction total + $0.45.
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PayPal: Historically higher and variable, but generally around 3.49% + $0.49.
(Note: These percentages can fluctuate slightly based on your region and the buyer's location).
Let's look at a real example from my sales log last month. I sold a pair of sneakers for $100.
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Old System: I would have paid a $10 Depop fee + ~$4 transaction fee = $14 in fees.
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New System: I pay $0 Depop fee + ~$3.75 transaction fee = $3.75 in fees.
This is a massive win for sellers. I saved over $10 on a single transaction. However, you must remember that this fee applies to the total amount. If you charge $100 for the shoes and $20 for shipping, the 3.3% is calculated on $120, not $100.
Depop Shipping Prices and the Fee Equation
Speaking of shipping, this is the second biggest leak in your profit bucket.
I used to use the "Ship with Depop" option exclusively because it was easy. I didn't own a printer, and the QR code feature at the post office was a lifesaver. But I realized I was overpaying.
Depop shipping prices are tiered:
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Extra Small: ~$4.39
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Small: ~$5.39
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Medium: ~$7.99
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Large: ~$12.49
If I ship a 13oz t-shirt using Depop’s "Medium" label, the buyer pays $7.99. If I use a third-party tool like Pirate Ship, I can usually send that same shirt for about $5.80.
Here’s where it gets interesting. Under the old fee structure, Depop took 10% of the shipping cost too. Now that the selling fee is gone, the pressure to optimize shipping is slightly lower from a fee perspective, but higher from a conversion perspective. Since buyers are now paying a "Marketplace Fee," they are more sensitive to high shipping costs.
I switched to "Ship on Your Own" in 2021. I bought a Rollo thermal printer (an investment, I know, but worth it) and an Accuteck scale. By offering lower, custom shipping rates, I can offset the sticker shock buyers feel from the new marketplace fees.
The "Boost" Trap: Where the Fees Return
If you think you are totally in the clear with fees, let me introduce you to the "Boost" feature.
Depop allows you to boost your listings to get them in front of more people. It’s essentially an ad. If the item sells via the boosted tile, Depop takes an 8% fee.
I have a love-hate relationship with this.
In the summer of 2023, I was sitting on a pile of inventory that wasn't moving. Desperate, I boosted my entire shop. Sales picked up immediately. I sold five items that weekend. But when I looked at the math, that 8% fee felt heavy.
On a $50 item, boosting costs you $4.00. If your profit margin was tight to begin with, that $4.00 might be 20% of your actual take-home pay.
My opinion? Only use Boost for items that have high margins or have been sitting for more than 60 days. Do not boost a $15 t-shirt. The math simply doesn't work.
Understanding the "Depop.fee" on Your Bank Statement
A common source of panic for new sellers is seeing a charge on their bank statement labeled depop.fee.
"I thought selling was free! Why did they charge me?"
This usually happens when you use "Ship with Depop." When a buyer pays you, they pay the full amount (Item + Shipping). The money goes into your Depop Balance. But, Depop needs to pay USPS for that label. So, they deduct the shipping cost from your payout.
If your specific payout method or balance timing is weird (sometimes happens with PayPal integration quirks), you might see a debit transaction. It’s not an extra fee; it’s usually just the accounting reconciliation for the shipping label or the transaction fee being pulled.
The Necessity of a Depop Fee Calculator
I cannot stress this enough: stop doing mental math.
Human brains are bad at calculating percentages on the fly. We tend to round up our profit and round down our costs.
I built a simple spreadsheet in Google Sheets to act as my personal depop calculator. It has columns for:
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Item Cost (what I paid at the thrift store)
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Sold Price
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Shipping Charged
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Actual Shipping Cost
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Transaction Fee (3.3% + 0.45)
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Boost Fee (if applicable)
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Net Profit
I vividly remember a month in 2022 where I felt like I was crushing it. I was shipping packages every day. But when I plugged the numbers into my spreadsheet at the end of the month, I realized my average profit per item was only $4.50 because I was accepting low-ball offers and paying for heavy shipping. I was doing a lot of work for less than minimum wage.
The spreadsheet doesn't lie. It forces you to see the truth about your depop seller fees.
Depop PayPal vs. Depop Payments
There used to be a big debate about depop paypal fees versus internal payments.
Years ago, you could choose to only accept PayPal. Now, Depop requires you to have Depop Payments enabled to sell. Buyers can still choose to pay with PayPal, but the backend is more integrated.
Honest failure time: In 2020, I had a PayPal dispute that froze my funds for 21 days. I had money in my account, but I couldn't touch it. It was a nightmare because I needed that cash to buy more inventory.
Depop Payments is generally smoother. The funds go directly to your bank account on a schedule (usually 1-2 business days after the sale). The fees are slightly more predictable, and you don't have to deal with the separate PayPal interface.
Managing Inventory Across Platforms
If you are worried about fees on Depop, the best hedge is to sell on multiple platforms. Poshmark takes a flat 20%. eBay varies but is around 13%. Mercari also recently dropped their selling fees to 0% (shifting costs to withdrawals and buyers).
The strategy is to cross-list. If I list a jacket on Depop, Poshmark, and eBay, I increase my chances of a sale. I use Closoto automate the cross-listing process—saves me about 3 hours weekly of manual copy-pasting and ensures I don't accidentally sell the item twice.
When you have the same item listed on three sites, you can see which platform gives you the best net return. Often, Depop wins for vintage and streetwear because the audience is willing to pay a higher premium, which offsets the transaction fees.
Strategies to Protect Your Margins
Since we know the depop fees for selling are now mostly centered on transactions and boosting, how do we maximize profit?
1. Bundle to Save on Transaction Fees
The fixed portion of the transaction fee (the $0.45) hits you every time. If you sell three items separately, you pay $0.45 x 3 = $1.35. If you sell them as a bundle, you pay $0.45 x 1 = $0.45. Encourage bundles. "15% off if you buy 2+ items" is a great hook.
2. Price for the Negotiation
Depop is a haggling platform. Buyers expect to send offers. If I want $40 for a sweater, I list it at $55. This covers the potential boost fee (if I use it) and gives me room to accept a $45 offer while still hitting my target.
3. Watch the Tax Man
This isn't a Depop fee, but it's a cost. If you sell over a certain threshold (it varies by year and state, but the IRS is cracking down on the $600 limit), you owe income tax. I set aside 25% of my net profit in a high-yield savings account. It hurts to see that money sit there, but it hurts less than a surprise tax bill in April.
Common Questions I See About Fees
People always ask me: Is Depop completely free to sell on now?
The honest answer is no. While there is no "Selling Fee" for the listing itself (in the US/UK), you cannot avoid the payment processing fee. You will always lose about 3-4% of the sale price to the banks. Plus, if you use the Boost feature, you lose another 8%. "Free to list" does not mean "Free to sell."
Common question I see: Why was I charged a fee on shipping?
This confuses everyone. The transaction fee (the ~3.3%) is charged on the total money that changes hands. If you sell a heavy coat for $50 and shipping is $15, the total transaction is $65. The fee is calculated on $65. The processor doesn't care that $15 of that is for postage; they processed $65 worth of risk, so they charge on the full amount.
Conclusion
Understanding depop selling fees is the difference between a hobbyist and a business owner.
The shift to a 0% selling fee structure is a massive opportunity, but it requires a shift in strategy. You need to be hyper-aware of your transaction costs, your shipping efficiency, and the optional costs of boosting.
My recommendation? Go through your last 10 sales. Put them in a spreadsheet. Calculate exactly how much you took home versus how much the item sold for. The results might shock you.
Don't be the person who sells a $100 item and wonders why they only have $80 in the bank. Own the math, and you will own the market.
If you want to dive deeper into maximizing your shop, check out the Closo Seller Hub for guides on inventory management. Also, our article on negotiation tactics can help you hold your price against low-ballers, and our breakdown of cross-listing will show you how to spread your risk across multiple platforms.
