How to Calculate Your Profit Margin on Depop

How to Calculate Your Profit Margin on Depop

Selling on Depop is a fantastic way to turn your unique style into a thriving business. But as you scale, a critical question emerges: how much do you actually make on Depop after all the fees? Understanding your profit margin is the key to sustainable growth, smart pricing, and building a successful resale business.

Many sellers focus on the sale price, but true profitability lies in what's left after costs and fees are deducted. Manually tracking this can be complex, with different fees applying based on your location, payment method, and promotional choices.

This guide will break down everything you need to know about Depop fees in 2024. We'll show you how to use a Depop profit calculator, understand the formulas, and see how Depop compares to other platforms. More importantly, we'll show you how to automate this entire process so you can focus less on spreadsheets and more on scaling your business.

Understanding the Depop Fee Structure in 2024

Before you can calculate your profit, you need a clear picture of the costs. Depop's fee structure has evolved, and the charges you incur depend heavily on your location as a seller. All fees are applied automatically to sales made using the "BUY" button.

Let's break down the different types of fees you'll encounter.

Depop Selling Fees

This is the most significant change for many sellers. As of 2024, Depop has updated its selling fee policy, creating a major distinction between sellers in the US/UK and those elsewhere.

• Sellers in the United Kingdom & United States: Great news for US and UK-based sellers! For new listings, there are no Depop Selling fees. This was a major shift designed to make the platform more competitive.
• Sellers Outside the UK & US: If you are based outside of the United Kingdom and United States, a Depop Selling fee of 10% applies. This fee is calculated on the total sale amount, which includes the item's sale price (excluding taxes) and the shipping cost if you are not using a Depop Shipping label.

Payment Processing Fees

While the selling fee has been eliminated for some, every seller on Depop incurs a payment processing fee. This fee covers the cost of the secure transaction itself and is charged by the payment provider, such as Stripe (for Depop Payments) or PayPal.

The fee is calculated on the total transaction amount, which includes the item price, shipping costs, and any applicable taxes.

Depop Payments (via Stripe)

This is the primary payment method in several key regions. The fees vary by country:

• United States (USD): The payment processing fee is 3.3% + $0.45 of the total transaction amount.
• United Kingdom (GBP): The payment processing fee is 2.9% + £0.30 of the total transaction amount.
• Australia (AUD): The payment processing fee is 2.6% + $0.30 AUD of the total transaction amount.

PayPal

For sellers in locations where Depop Payments isn't the standard, transactions are often processed through PayPal. Sellers outside of the UK and US will pay a payment processing fee via PayPal.

It's important to note that PayPal’s payment processing fees can vary depending on your specific location and the type of PayPal account you have. You should check your local PayPal fee structure for the exact rates.

Boosted Listing Fees

Boosting your listings is an optional way to increase their visibility. If you opt-in and your item sells via a boosted tile, an additional fee applies.

• The boosting fee is 8%.
• This fee is charged on the item sale price (excluding taxes). If you arrange your own shipping (i.e., you don't use a Depop shipping label), the fee is also applied to the shipping cost.

How Fees Are Deducted

The way fees are taken from your sale depends on the payment method used.

• Depop Payments (via Stripe): This is the most straightforward method. All fees (payment processing and any boosting fees) are automatically bundled and deducted from the sale total before the remaining profit is paid out to your connected bank account. You receive your net profit directly.
• PayPal: When a sale is made via PayPal, the process is slightly different. The Depop Selling fee (if applicable) and PayPal's payment processing fee are deducted as two separate charges from your PayPal account balance.

How to Calculate Your Depop Profit: The Manual Method

Now that you understand the fees, how do you put it all together to figure out your profit? You can use a manual formula or a Depop fees calculator. To calculate your profit, you need three key pieces of information:

1. Item Sale Price: The price the buyer paid for your item.
2. Shipping Cost: How much was charged for shipping.
3. Your Cost of Goods: The original price you paid for the item you sold.

Let's walk through an example for a US-based seller using Depop Payments.

Example Calculation (US Seller)

Imagine you sold a jacket through a standard, non-boosted listing.

• Item Sale Price: $50.00
• Buyer-Paid Shipping: $8.00
• Your Cost for the Jacket: $15.00
• Sales Tax (hypothetical 7%): ($50 + $8) * 0.07 = $4.06

Here is the step-by-step breakdown:

1. Calculate the Total Transaction Amount: This is the basis for the payment processing fee.

Item Price + Shipping + Sales Tax = Total Transaction

$50.00 + $8.00 + $4.06 = $62.06

2. Calculate the Depop Payment Processing Fee: For a US seller, the formula is (Total Transaction * 3.3%) + $0.45.

($62.06 * 0.033) + $0.45 = $2.05 + $0.45 = $2.50

3. Calculate Your Gross Revenue: This is what you receive before accounting for your initial cost.

Item Price + Shipping Collected - Processing Fee = Gross Revenue

$50.00 + $8.00 - $2.50 = $55.50

4. Calculate Your Net Profit: This is your final take-home amount.

Gross Revenue - Your Cost of Goods = Net Profit

$55.50 - $15.00 = $40.50

As you can see, even without a platform selling fee, the numbers can get complicated quickly. Using a Depop profit calculator can help, but when you're managing dozens or hundreds of sales, plugging numbers into a calculator for every transaction is inefficient and prone to error.

Are you spending too much time calculating fees instead of sourcing and listing? It might be time for a more powerful solution. We built our platform to handle this automatically, giving you back time to grow your business. See how with a free trial.

Depop vs. Poshmark Fees: A Quick Comparison

For resellers who sell on multiple platforms, understanding how fees compare is crucial for maximizing your income. Let's look at how Depop's structure stacks up against another popular marketplace, Poshmark.

Poshmark's fees are simple and predictable: a flat 20% commission covers everything. This simplicity is appealing, but it comes at a high cost, making it one of the most expensive platforms for sellers.

Depop, by eliminating the selling fee for US and UK sellers, has become one of the most cost-effective marketplaces. While you still need to account for the payment processing fee, your total fees will almost always be significantly lower than on Poshmark.

This lower fee structure on Depop means a higher potential profit margin on every sale. For serious resellers looking to scale, minimizing fees is essential, making Depop an attractive platform to prioritize.

Scale Your Business and Automate Finances with Reeva

Manually calculating profits for every item across Depop, Poshmark, and eBay is not just tedious—it's a barrier to growth. As your sales volume increases, so does your administrative workload. The time you spend buried in spreadsheets is time you're not spending on sourcing, listing, and scaling your business.

This is precisely the problem we solve. We designed Reeva to be an all-in-one platform that simplifies and automates the complexities of running a resale business, allowing you to focus on what truly matters.

Our tools are trusted by top resale businesses across the U.S. to accelerate their growth. For example, Nuzzydeals saw a 7x increase in sales after using our platform, while Vintage Vault increased items sold by 372% in just three weeks.

From Manual Calculations to Automated Accounting

Imagine a world with no more spreadsheets for tracking fees and profits. Our platform offers full-service accounting tools built specifically for resellers.

• Automated Transaction Syncing: Connect your bank accounts, and we automatically record your sales, expenses, and marketplace fees. You get a real-time view of your business's financial health without lifting a finger.
• Effortless Expense Tracking: Simply snap a photo to upload and attach receipts to transactions. This provides seamless record-keeping and critical audit protection.
• Tax-Ready Categorization: We automatically categorize your income, fees, and expenses, making tax time simple and stress-free.
• Clear Profit & Loss Reporting: Generate powerful reports that show you exactly where your business stands. Understand your profitability at a glance to make smarter sourcing and pricing decisions.

As one of our users said, "No more spreadsheets. My bookkeeping is now all automated thanks to Reeva accounting." - PCT Vintage Finds, Florida.

Sell Smarter, Not Harder

Beyond accounting, our platform is designed to optimize your entire selling process and help you grow with ease.

List Everywhere with One Click: Why limit yourself to one marketplace? We enable you to turn photos into complete listings and cross-post them to Depop, Poshmark, eBay, and Mercari instantly. This maximizes your visibility and sales potential without duplicating your work.

FabFam, a reseller from Washington, notes, "Reeva has cut my listing time by more than half. I can take photos, voice-to-text my details, and let Reeva handle the rest." This efficiency led to a 2x increase in their listing amount.

Automate Your Key Tasks: Success in reselling requires consistent activity. We automate the tasks that keep your listings visible and drive sales.

• Instantly Delist Sold Items: Our auto-delist feature prevents overselling across platforms, saving you from cancelled orders and negative feedback. AlistairBP calls this the feature he "couldn't live without."
• Send Offers Automatically: Engage interested buyers by sending personalized offers without any manual effort.
• Relist Stale Products: Keep your inventory fresh by automatically relisting items to push them to the top of search results.

These automations are game-changers. AlistairBP went from selling 3-5 items a week to 10-15 items a day after implementing our tools.

If you're ready to stop juggling spreadsheets and start building a more profitable, scalable resale business, we're here to help. Start your free 7-day trial of Reeva today and experience the power of automation.

Conclusion: From Calculation to Automation

Understanding your profit margin on Depop is non-negotiable for any serious seller. By familiarizing yourself with the fee structure—including the lack of selling fees for US/UK sellers and the consistent payment processing fees—you can accurately price your items and predict your earnings.

While a Depop fees calculator is useful for individual sales, it falls short for a growing business. The manual effort of tracking each sale, fee, and cost across multiple platforms is a significant drain on your most valuable resource: your time. Comparing platforms like Depop and Poshmark further highlights how crucial an efficient, low-fee environment is for your bottom line.

Ultimately, the key to scaling is not just working harder, but working smarter. By leveraging automation, you can eliminate administrative tasks, optimize your selling process, and gain crystal-clear insights into your financial performance.

We built Reeva to handle every aspect of your resale business, from AI-powered listings and multi-platform cross-listing to fully automated accounting. Let us handle the complexities so you can focus on growth.

Ready to transform your resale business? Start your free trial of Reeva today and discover everything you need to grow, all in one place.