Second-hand fashion app Depop scraps seller fees in Australia after $1.7 billion eBay buyout

Fashion marketplace app Depop will scrap seller fees in Australia after it was acquired by eBay in a $1.7 billion deal earlier this year.

Depop – formerly owned by Etsy – currently charges Australian sellers a flat 10 per cent fee on all sales, while users in the United States and the United Kingdom or anyone selling in GBP or USD avoid the tariff.

Read more

‘Don’t think there’s any shame’: Young homebuyers relying on bank of mum and dad

The app informed customers on Thursday that it is removing selling fees for every listing in Australia from July 22.

“This means even more profit in your pocket from every sale,” Depop said in an email.

Sellers will still pay a processing fee for every sale via payment platform Stripe, which is charged at 2.6 per cent of the sale price, plus three cents.

Users have been urged to update their app before July 22.

Buyers are charged a marketplace fee on Depop, which is calculated at five per cent of the item’s purchase price and a fixed amount of up to $1.

Depop said this fee funds the app’s 24/7 customer support and security for users.

E-commerce giant eBay acquired Depop for $1.7 billion in cash in February in a strategic move to attract a Gen-Z and Millennial customer base.

Depop remained largely the same but absorbed some of eBay’s features, like shipping options and an authenticity guarantee.

The second-hand fashion marketplace has 7 million active buyers, 90 per cent of whom are under the age of 34.

Australia is believed to contribute an estimated 11 per cent to Depop’s business, the second highest in the world after the US, according to Semrush.