Depop removed the 10% selling fee on March 20 – however, the second-hand selling giant will introduce a small marketplace fee for buyers in the UK from April 15
Depop has removed selling fees for UK users – meaning sellers will keep more of their profit when they make a sale.
The 10% selling fee was removed on March 20. However, Depop will introduce a small marketplace fee for buyers in the UK from April 15, 2024. The marketplace fee will be up to 5% of the item purchase price, plus a fixed amount of up to £1, excluding taxes and postage costs.
Depop charges sellers a payment processing fee of 2.9% of the total transaction amount, plus 30p. This will remain in place. Kruti Patel Goyal, chief executive of Depop, said: “Our mission is to make fashion circular – we want to encourage as many people as possible to choose second-hand instead of new.
“This change will give sellers more cash in their pocket from each sale, empowering our existing community – as well as those new to resale – to list more, sell more and earn more while contributing to a more circular fashion system. More listings means more choice for UK buyers at a greater range of price points; enabling them to find the items they love, on budget.”
The change comes after HMRC has announced new rules that affect people who use second-hand selling websites to earn extra money. These platforms must now report sellers’ income by January 2025, if they are selling 30 or more items a year and have total earnings over the equivalent of €2,000 (currently around £1,700).
You can earn £1,000 in additional income each tax year alongside your regular job – this is known as your Trading Allowance. If you make more than this, then you may have to report it to HMRC through self-assessment and you may need to pay tax. You don’t have to declare additional income if it comes to under £1,000.
Those who are will likely be expected to pay tax are those who are considered to be “trading” – so for example, if you’re buying goods with the intention of selling them on for profit. HMRC says you will “unlikely” need to pay tax if you are just selling some unwanted items from your home. You can check the HMRC website for guidance.
