Tech Issue Results in Persistent Payment Delays for Depop Vendors, Confirms Corporation

A streetwear seller, whose shop is @fentoozler791, told TechCrunch that they had a payment of $200 for multiple packages pushed back by over a week. It seemed like they didn’t care until they realized they’d be losing my money from all the fees they’ve charged me,” @fentoozler791 told TechCrunch. After further requests for comment, Depop told TechCrunch on Wednesday that it had uncovered an issue that caused these delayed payments. 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. Depop told TechCrunch that it gained 5 million registered users last year, bringing its userbase up to 35 million.

Sellers on the popular clothing resale app, Depop, which is owned by Etsy, have been facing a frustrating predicament – delayed payments.

Reports have been pouring in for the past few months that payment dates are being pushed back repeatedly without any real explanation or assistance from Depop’s support team.

What is Depop?

Depop, which was acquired by Etsy for a whopping $1.6 billion in 2021, is often referred to as “Instagram for second-hand items.” It allows sellers to post images of clothes and accessories they want to sell with hashtags and algorithmic recommendations for potential buyers. Buyers can make offers, and once a seller agrees, they will receive payment – minus Depop’s cut – two days after the item’s delivery.

“It seemed like they didn’t care until they realized they’d be losing my money from all the fees they’ve charged me,” one streetwear seller, known as @fentoozler791, shared with TechCrunch.

Seller Struggles

The seller, who has been using Depop for over a year, had a payment of $200 for multiple packages pushed back over a week. Despite numerous attempts to contact Depop’s support team, there was no response until the seller threatened to stop using the app. Even then, the response was lacking and left the seller without a specific explanation for the payment delays.

Similar issues have been reported by several other sellers on various platforms, including the Depop subreddit, Facebook, and Instagram. Payout dates are being pushed back one day at a time without any explanation.

“After this, I’m not sure I’ll sell anymore on Depop,” @fentoozler791 shared.

When TechCrunch brought these payout issues to Depop’s attention, a spokesperson initially stated that their support team was experiencing a higher volume of tickets than usual. However, after further inquiries, Depop acknowledged that there was a system issue causing the delays and assured that all pending payments would be sent out within a few days.

“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 stated.

An Unseen Fee?

In addition to the payout delays, sellers have also been facing an unexplained “buyer service fee,” which is billed as an extra 5% fee for “upgraded features, improved security, and optimized performance.”

YouTube creator Just Old Things expressed frustration in a video, wondering what the 10% cut Depop already takes from sales was being used for.

“What the f— is our 10% covering then, if you need an extra 5% from the buyers as well? You couldn’t speedrun blowing up your company any quicker than what Depop’s currently trying to do,” they stated.

A spokesperson for Depop suggested that the fee may be a test, but it’s being applied unevenly across the app, leading to confusion and frustration for buyers. A previously public help page detailing the fee has since been made private.

Depop’s Growing Popularity

Despite these issues, data from Apptopia shows that Depop’s daily active user counts have been on the rise. Worldwide, mobile daily active users are up 30% compared to the same time last year. Additionally, Depop reported gaining 5 million registered users in 2020, bringing their total userbase to 35 million.

Although Depop may not be as popular as other resale sites like Poshmark, which takes a 20% cut from sales, it has still emerged as a top choice for many sellers due to its lower 10% fee. Vinted, another popular resale app, is also gaining traction in the UK now that Poshmark is no longer available there.

Aiming for Improvement

Despite the recent struggles for sellers, Depop remains focused on constantly improving and adapting to its growing community. They are taking steps to ensure more efficient and timely payouts for sellers, as well as addressing and clarifying any unexpected fees. With its continued growth and loyal userbase, Depop aims to maintain its position as a top contender in the ever-growing world of online resale.

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Zara Khan

Zara Khan is a seasoned investigative journalist with a focus on social justice issues. She has won numerous awards for her groundbreaking reporting and has a reputation for fearlessly exposing wrongdoing.

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