Competing with thousands of sellers selling similar items can be challenging. Beyond posting visually-appealing photos, the prices matter most. After all, these are what customers look for in the first place. This is why you should research before putting up the listings of your items . From looking for the original value to considering Depop tax and shipping costs, this short guide will help you set up a justifiable price for your listings.
Why get it right?
As the price is the first thing that customers check when looking at your listing, you should be able to list it properly. This means that your price is not far from either the item's original value or what is considered reasonable for its condition. The latter applies to pre-loved or second-hand items. These have been worn or used a few times by the owner, so it is only sensible that you sell them for a low price–all according to the condition you will sell them for.
Setting the right price is crucial for potential buyers to flock to your listings. You need not get an accurate cost as some items' value is tough to measure (e.g., vintage clothing). However, you need to get a sense of how much it costs and how much people are willing to purchase it.
If you don't research and end up overpricing your item, Depop users will definitely skip past your listing. The last thing you want is to be unable to close any sales.
How Should You Price?
There are several factors you must consider when setting up the price of your items. These include looking up the original value, canvassing from fellow sellers who list similar items, considering the shipping costs and postal fees, and factoring in Depop fees and sales tax.
First, you have to know the original cost of the item or products you are about to sell. From clothing and shoes to accessories, you must be aware of how much it initially costs. This applies especially to designer and branded pieces. If you are selling a Lacoste polo shirt, look up how much it costs through the brand's official website or even through official consignment stores.
Second, research similar items on other e-commerce sites and online marketplaces. Get a sense of how other resellers price their items. For instance, if you are selling a pre-loved Nike Go FlyEase, it would be best to check how much it costs on other marketplaces. Doing so helps you gauge your price.
Anything higher than the average will definitely make it difficult for you to attract customers. Anything extremely lower will also turn away possible buyers. After all, it may seem too good to be true. Buyers these days are already wary of possible fake or inauthentic items that are worth way below the original.
Third, consider the cost of shipping and postal fees. From getting the correct weight of the overall package (including the wrap, boxes, and protective materials) to dropping it off at the postal office or courier, these are all part of the computation. Keep in mind not to do simple estimates as this can lead to shouldering additional costs.
For those who prefer to ship using Depop, the platform uses USPS (in the USA) and has varying fees based on the size:
- Extra Small - $4.05 (less than 4oz)
- Small - $5.05 (less than 8oz)
- Medium - $7.05 (less than 1lb)
- Large - $11.75 (less than 2lb)
- Extra Large - $15.75 (less than 10lb)
Keep in mind there are two options in shipping: first is when you let the buyer pay for the shipping, and the second is when you pay for it yourself.
In the 1st option, you have to consider the shipping fee, Paypal fee, 10% Depop fee, and the label of your choice (e.g., small). For instance, if the original cost is $44.75, including shipping, once the deductions are considered, the total now becomes $34.40.
In the 2nd option, you only need to factor out the shipping since you are already paying for it. After all the deductions of Paypal, Depop, and the label (e.g., small), then the total becomes $29.80 from the original $44.75.
Now, to protect your package using Depop's Protection Policy, you should include tracked postage in sending your items. The tracking number should already be on the package, so you can also share the shipping status with the buyer. Additionally, if there are other disputes, Depop can easily assist you here.
Considering Depop Fees and State Taxes
Depop has no control over the state tax. The marketplace only collects it on behalf of the sellers before they hand it over to the government. Take note that the amount differs per state that you live in, so you must consider this as well in setting up the price.
Thankfully, you no longer have to manually file the taxes and pay for the service. Depop does all this for you by automatically computing the taxes. You can see this in your order total.
The calculations may be confusing, especially given the 10% fee that Depop deducts from your overall profit.
When you use Depop Payment, here is how your sales are calculated: for instance, if you sell a branded dress for $30, you must deduct the 10% Depop seller fee before deducting the state tax (e.g., $1.80). Your seller total is $28.80. Afterward, 2.9% of the total is taken for the Depop Payment fee, and you are left with $27.58. This is when Depop then transfers the state tax to the government so that your final profit amounts to $25.78.
There is a slightly different case when you use PayPal and include the state tax. If the branded dress has a state tax of $1.80, then your seller total is $31.80. But you have to take a 2.9% PayPal fee + $0.30 to make it $30.58. This makes it to your PayPal account, but then with a 10% Depop fee and state tax, your profit ultimately becomes $25.78.
Overall, this shows that your total deduction is $4.22 for your branded dress. This is why you should be careful and strategic in tagging the price of your items.
Pro-Tip for the Pro-Seller
There are many aspects to preparing your listings, such as taking good photos, creating descriptions, and setting up the price. This is why you would seize on the chance to get your hands on an all-in-one tool that can help you. After all, you also have to manage to answer queries, pack, and then ship orders.
OneShop is an automation tool that assists you with all these tasks. OneShop features tools for cross-listing, delisting, and AutoBump (available soon) that are incredibly useful for selling on Depop.
If one of your goals is for your listings to gain extensive exposure, cross-listing to other marketplaces is the best way to do it. OneShop imports your existing listings with minimal effort on your end. You don't need to manually bump your listings on Depop either, as OneShop does this for you.
You need not worry about accidentally selling the same item twice on different platforms. OneShop automatically delists once it has been purchased. This makes it easier for you to focus on other aspects of the business rather than constantly monitoring your listings across other e-commerce sites and apps.
Register for a free 7-day trial and experience getting the best out of OneShop's amazing features for pro-sellers like you.