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Depop sellers faced ongoing payment delays due to tech issue, company admits
March 14, 2024

Depop sellers faced ongoing payment delays due to tech issue, company admits

Reading Time: 2 minutes

Sellers on the Etsy-owned clothing resale app Depop have been facing delayed payments. Over the last few months, more and more sellers have reported that their payment dates were being delayed over and over, with little response from Depop’s support team.

Depop, which Etsy bought for $1.6 billion in 2021, is like Instagram for pawning off second-hand items – sellers post photos of clothes and accessories that they want to sell, which buyers can browse through hashtags and algorithmic recommendations. Buyers can make offers, and if the seller accepts, they will get paid – minus Depop’s cut – two days after delivery.

Several other sellers have reported similar issues on the r/Depop subreddit, X, Facebook and Instagram: Payout dates are repeatedly getting pushed back one day at a time with no explanation.

‘I just sold an item last night and dropped it off at the post office today and I’m concerned I will have to contact Depop again after it’s delivered,’ said @fentoozler791, who has been selling on Depop for over a year. ‘After this I’m not sure I’ll sell anymore on Depop.’

‘We’re really sorry that some sellers have been experiencing payout delays over the last week. We identified an issue in our automated payouts system that has now been fixed, and all pending payments have been sent out to affected sellers,’ Depop said. ‘These should be received within the next few days, depending on bank processing times.’

Depop said that sellers who reached out to the support team should have received a response by today, and that the company will proactively notify its high volume sellers.

Additionally, Depop has sometimes been instituting an unannounced extra fee, billed as a ‘buyers service fee.’

The now-private help page stated that the extra 5% fee to ‘upgrade features, improve security, and optimize performance.’

‘What the f— is our 10% covering then, if you need an extra 5% from the buyers as well?’ said YouTube creator Just Old Things in a video. ‘You couldn’t speedrun blowing up your company any quicker than what Depop’s currently trying to do.’

Depop isn’t as popular as other resale sites like Poshmark, but some prefer the smaller platform since it takes a 10% cut of sales, as opposed to Poshmark’s 20%. Vinted is also growing in popularity in the UK, since Poshmark is no longer available there.

‘We know that prompt payouts are crucial for our sellers, and we’re making changes to our systems to ensure that we can process higher volumes of payouts quickly, as our community grows,’ Depop said.


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