How to Handle a Depop Dispute Through PayPal

How to Handle a Depop Dispute Through PayPal

Selling on Depop is a fantastic way to build a resale business, connect with buyers, and turn your unique inventory into profit. However, even the most diligent seller can face a common hurdle: a customer dispute. When a transaction doesn't go as planned, navigating the resolution process can feel stressful and confusing, especially when it involves a third party like PayPal.

Understanding the correct procedure for a Depop PayPal dispute is crucial for protecting your business, your reputation, and your bottom line. A misunderstanding of the process can lead to lost funds and a hit to your seller metrics.

This comprehensive guide will walk you through every step of handling a Depop dispute that was processed through PayPal. We will cover the specific steps for both sellers and buyers, highlight critical differences for users in Australia, and show you how to build a stronger, more dispute-proof business from the ground up.

Understanding the Depop PayPal Dispute Process for Sellers

The first and most important thing for a seller to understand is where the dispute will take place. The payment method determines the venue for the dispute resolution.

If your buyer paid using PayPal, the entire initial dispute process will live on PayPal’s platform, not within the Depop app. This is a critical distinction that can cause confusion for sellers who are only monitoring their Depop notifications.

According to Depop's official documentation, for any PayPal transaction, sellers will receive and manage disputes directly through PayPal's Dispute Centre. This means you must regularly check your PayPal account and associated email for notifications about new cases.

The Standard Seller Dispute Flow

When a buyer opens a Depop PayPal claim, you will be notified by PayPal. You must then log in to your PayPal account to respond. You will be expected to provide evidence to support your side of the case, which often includes:

• Proof of shipment (a valid tracking number showing delivery to the buyer's address)
• Proof of item condition (original listing photos, etc.)
• Any relevant communication with the buyer

Responding promptly and with clear, comprehensive evidence is the key to successfully resolving a claim in your favor.

Special Considerations for Australian Sellers

For sellers based in Australia, there is a specific, multi-layered process that involves both PayPal and Depop. It is essential to follow these steps precisely to be eligible for any protection.

If you are an Australian seller and a buyer files a dispute on a PayPal sale, you must first go through the entire PayPal dispute resolution process. This includes not just the initial claim but also any appeals that are available to you through PayPal's system.

Only after you have exhausted all options with PayPal can you turn to Depop. To be eligible for Depop Protection, Australian sellers must provide Depop with proof of the initial claim filed with PayPal and, crucially, proof of a lost appeal. Without evidence of both, you will not be eligible for Depop Protection.

A Critical Warning: The Depop 'BUY' Button

Depop Protection for sellers has a very strict boundary. It only applies to sales made through the official Depop BUY button within the app or on the website.

Sales that are conducted "off-app," even if you use PayPal, are not covered. This includes direct money transfers using PayPal, Venmo, or bank transfers. If a buyer convinces you to handle the transaction outside of the Depop system, you immediately forfeit any eligibility for Depop Protection. This is a common tactic used in scams, so you should always insist that all sales go through the app's official checkout process.

Understanding the Buyer's Side of a Depop PayPal Claim

To effectively manage a depop dispute seller situation, you need to understand the process from the buyer's perspective. Knowing what steps they are instructed to take can help you anticipate their actions and prepare your response.

If a buyer has an issue with an item they purchased from you using PayPal, Depop directs them to open a dispute directly on PayPal to request a refund. They will not use the in-app Resolution Centre for these transactions. This reinforces that the primary arena for the dispute is PayPal.

If a buyer has gone through the entire PayPal dispute process and is still unsatisfied or needs further assistance, Depop advises them that they can then contact the Depop Support team for help.

The Process for Australian Buyers

Depop Protection for buyers in Australia does include PayPal as a valid purchase method. However, similar to the seller process, there is a required order of operations.

For an Australian buyer who claims an item was lost or damaged in transit, they are required to first file a claim through PayPal’s Protection Policy. They cannot come to Depop first.

If PayPal denies the buyer's claim, the buyer can then reach out to Depop to start a claim. To do so, the buyer must provide Depop with evidence that PayPal denied their initial claim, including proof of any appeals they attempted. Furthermore, to be eligible for Depop Protection, the Australian buyer must have initiated their PayPal claim within 30 days of the original purchase date.

Just like with sellers, Depop Protection does not apply if the buyer paid you via a direct money transfer outside of the app, even if they used PayPal to do it.

How This Differs from Depop Payments Disputes

Understanding the PayPal process becomes even clearer when you compare it to disputes for transactions made with Depop Payments (Stripe). The process for Depop Payments is handled entirely within the Depop ecosystem.

When a buyer pays with Depop Payments and has not received their item, they can use the in-app Resolution Centre. The process is as follows:

1. The buyer should first try messaging the seller and wait at least 5 days for the item to be shipped.
2. If more than 5 days pass with no update, the buyer can open a dispute in the Resolution Centre by navigating to My Depop > Support > Resolution Centre.
3. Within the dispute, the buyer can request tracking information, a refund, or an alternative solution.
4. Once the dispute is raised, the seller has 48 hours to respond and offer a resolution.
5. If the seller responds but no agreement can be reached, the buyer can escalate the issue to the Depop Support team for review.
6. Crucially, if the seller does not respond within the 48-hour window, the transaction is automatically refunded to the buyer.

This automated refund is a major risk for sellers who are not actively monitoring their Resolution Centre. It highlights the importance of knowing which payment method was used for each sale and where you need to look for potential disputes.

For issues where an item is "significantly not as described" or there are authenticity concerns, buyers are directed to report this to Depop Support via a web form, providing photos of the item they received.

Scale and Simplify Your Business with Reeva

Navigating disputes is a reactive part of being a reseller. But what if you could run your business so efficiently that you dramatically reduce the chances of a dispute ever happening in the first place? What if you could automate the tedious tasks that take up your time, freeing you to focus on sourcing, scaling, and selling?

That's where we come in. Our platform is an all-in-one solution designed specifically to help resale businesses grow with ease. We help you sell smarter, save time with automation, and manage your entire operation from one central hub, minimizing the errors and communication gaps that often lead to disputes.

If you're looking to grow your resale business on Depop, Poshmark, eBay, and Mercari, our tools are built to accelerate that journey. Resellers who use our platform see incredible results, like Nuzzydeals, who achieved a 7x increase in sales, and Vintage Vault, who saw a 372% increase in items sold in just three weeks.

Are you ready to spend less time on admin and more time growing? Start your free Reeva trial today and see the difference.

Prevent Overselling with Automatic Delisting

One of the fastest ways to get a negative review and a dispute is to sell a unique item to two different people on two different platforms. It's a common mistake for manual cross-listers, but it creates a terrible buyer experience.

Our platform solves this permanently. One of our most-loved features is the ability to instantly delist sold items across all other marketplaces. When your item sells on Depop, we automatically remove the listing from Poshmark, eBay, and Mercari. This single feature prevents overselling, protects your seller reputation, and eliminates a major source of customer disputes.

As reseller AlistairBP says, "The feature I use 100% the most—and couldn't live without—is the AUTO-DELIST feature."

Create Dispute-Proof Listings in Seconds

Many disputes arise from a buyer feeling an item was "not as described." Vague or inaccurate descriptions can lead to mismatched expectations and unhappy customers. We help you create detailed, accurate, and compelling listings in a fraction of the time.

With our AI-powered tools, you can simply upload photos, and we'll generate complete listings with optimized titles, detailed descriptions, and suggested pricing. This ensures your listings are comprehensive, leaving little room for misinterpretation and preventing claims before they happen.

The time savings are immense. FabFam, a resale business 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 speed allows you to list more and sell more, scaling your business faster than ever.

Manage Your Entire Empire from Anywhere

Juggling multiple platforms, each with its own interface and inbox, is a recipe for missed messages and shipping delays. Our platform centralizes your business, allowing you to manage everything from your phone, tablet, or desktop without needing a clunky Chrome extension.

You can list your inventory to all marketplaces with a single click and manage hundreds of listings in bulk. This unified control panel means you're always on top of your orders and customer communications, ensuring items are shipped promptly and buyers are kept in the loop—two key factors in preventing "item not received" disputes.

Reseller AlistairBP, who now sells 10-15 items a day, says, "Being able to manage my entire reselling business through my iPhone is truly industry-leading—nobody else does it to this degree."

Gain Financial Clarity with Integrated Accounting

A successful business knows its numbers. Our platform includes a full suite of accounting tools built for resellers. You can connect your bank accounts, and we'll automatically record your transactions, expenses, and fees. No more spreadsheets.

We help you categorize your income and expenses for easy tax filing and generate clear profit and loss reports. This financial control helps you understand the true cost of disputes and make smarter decisions to grow your business profitably.

As one user told us, "No more spreadsheets. My bookkeeping is now all automated thanks to Reeva accounting."

For a limited time, you can get started with our Basic plan for just $29/month, which includes unlimited AI generations and business analytics. Or, for businesses ready to scale with teams, our Business plan is just $59/month and adds full automation and accounting.

Ready to see how we can help you grow? Try Reeva completely free for 7 days.

Conclusion: Your Path to a Smoother Resale Business

Handling a Depop PayPal dispute requires you to be informed and proactive. Remember the key takeaways: for PayPal sales, the dispute lives in PayPal's Resolution Centre, not Depop's. You must respond there with clear evidence, like tracking information. For sellers in Australia, the process is even more specific, requiring you to exhaust all PayPal options, including appeals, before turning to Depop for protection.

Always keep your sales within the Depop app using the official BUY button to ensure you are eligible for any available protections. Understanding these rules is your first line of defense as a depop dispute seller.

However, the best strategy is always prevention. By building a streamlined, efficient, and professional operation, you can significantly reduce the number of issues that lead to disputes. This frees you from spending your valuable time on administrative headaches and allows you to focus on what you love: sourcing great items and growing your business.

We are here to be your partner in that growth. Our all-in-one platform automates inventory management, perfects your listings, and gives you the tools to scale with confidence. Stop juggling apps and start building an empire.

Start your free 7-day trial of Reeva today and transform the way you run your resale business.