how does depop make money on sales

Depop makes money mainly by taking a cut of each sale, plus payment-processing fees and some advertising revenue. In simple terms, when something sells, Depop earns a percentage of the item price and, in many cases, a separate fee for handling the payment.

How the fees work

• Depop’s platform fee is 10% of the total selling price, and that includes shipping costs.

• Depop also charges a payment-processing fee, such as 2.9% plus $0.30 in the US, according to the source.

• Some reports also mention advertising and foreign-exchange fees as additional revenue streams.

Example

If a seller sells an item for $50, Depop’s 10% platform fee would be $5, and a payment fee would be added on top of that depending on how the buyer paid. That means Depop earns even when the seller is making a small, one-off sale.

What this means for sellers

The seller keeps the remaining amount after Depop’s fees, shipping, and any other costs. So the more sales that happen on the app, the more Depop earns overall.