Depop Slashes Seller Fees to Zero, Passes 5% Cost to Buyers But Is It 'Too Little, Too Late' Against Vinted's Aussie Invasion?

Depop has scrapped its hated 10% seller fee for Australian users, instead introducing a 5% buyer fee plus up to $1 per transaction. The shake-up follows the July 1 launch of European rival Vinted in Australia, which has already captured Gen Z's thrift-loving hearts with a strict "no seller fees" model.

Gen Z's favourite fashion marketplace has just flipped its fee structure upside down and not everyone is celebrating.

Depop has officially scrapped its 10 per cent seller fee for all Australian users in a major shake-up designed to encourage more people to clear out their wardrobes and cash in on the booming second-hand market . The move follows similar rollouts in the UK and US earlier this year.

But there is a catch. While sellers are celebrating keeping 100 per cent of their earnings, buyers will now face a new "marketplace fee" of up to five per cent of the item purchase price, plus a fixed fee of up to $1 per transaction .

"We want to make it as easy and rewarding as possible for people to clear out their closets," Depop said in a statement. The buyer fees, the platform says, are essential to fund marketplace improvements, 24/7 customer support, secure payments, and fraud detection and prevention.

The radical shift comes at a time of intense competition in the Australian pre-loved fashion market. Industry experts suggest Depop's new rule was forced by the rapid growth of European giant Vinted, which launched in Australia on July 1 with a strict 'no seller fees' model that has taken the resale market by storm.

“Do y'all realise this is only bc of Vinted launching," one TikTok user claimed. Another wrote: "They have already lost everyone to Vinted tho … too little too late."

The backlash has been swift. Many Australian Depop users took to social media to express their disappointment, calling the new buyer fee the "final nail in the coffin." One Brisbane seller who has made hundreds on the platform told Yahoo Lifestyle that buyers are already haggling for discounts, and the new fee means she "won't make much money." She described a recent sale where, after fees and postage, she was left with less than $3.

"I've got friends as well who are trying to sell, and just no offers come through unless it's $5. People want it cheaper than the op shops," she said.

The fee change comes at a turbulent time for the Australian pre-loved fashion market. The collapse of delivery firm Sendle earlier this year forced fashion resellers like Yordrobe and eBay Australia to rejig their operations. Meanwhile, eBay has made a massive push into the space, buying local circular fashion app AirRobe and slashing fees for certain preloved fashion categories to win back younger consumers.

Under the new structure, the 10 per cent seller fee is gone. But the cost has to come from somewhere. Buyers will pay up to 5% of the item price plus up to $1 per transaction, with the new fee structure already live for all new listings across Australia.

Here is the question this fee shake-up raises. Depop has spent years building a community of millions of sellers who pay a 10% fee for the privilege. When Vinted arrives with no seller fees and captures the market's attention, Depop scrambles to copy the model. But the cost is simply passed to buyers. If a platform can only compete by making its users pay more, does it have any real competitive advantage at all?

As Depop scraps seller fees and introduces a new buyer fee in a bid to compete with Vinted, The Silicon Review asks a final question. When a fashion marketplace's only response to competition is to shift costs from one side to the other, who is really winning and who is quietly walking away?

FAQ:

Q: What is the new fee structure on Depop Australia?
A: Depop has removed the 10% seller fee and replaced it with a 5% buyer fee plus a fixed fee of up to $1 per transaction.

Q: Why did Depop change its fees in Australia?
A: Depop's fee change was likely prompted by the July 1 launch of European rival Vinted in Australia, which operates with no seller fees.

Q: How are Depop sellers reacting to the fee changes?
A: While sellers are happy to keep 100% of their earnings, many fear the buyer fees will reduce demand, with some calling it the "final nail in the coffin."

Q: When did Depop's new fees take effect?
A: The new fee structure is already live for all new listings across Australia.

Q: What other fashion marketplaces are competitors to Depop?
A: Depop is competing with Vinted, which launched in Australia on July 1, 2026, as well as eBay Australia.