Depop

Social shopping app

Depop Limited

Type of business| Subsidiary
Available in| English, Italian
Founded| 2011; 14 years ago (2011) in Roncade, Italy
Headquarters|

London

United Kingdom

No. of locations|

* London
* Manchester
* Milan
* Los Angeles
* New York City

Area served| Worldwide
Founder(s)| Simon Beckerman
CEO| Kruti Patel Goyal
Industry| Online shopping
Employees| 400 (2021)[1]
Parent| Etsy
URL| depop.com
Users|  35 million (2024)[2]

Depop Limited is a social e-commerce company based in London, with additional offices in Manchester, Milan and New York City. The company has an expanding global presence and has been popularized in countries such as the United States, United Kingdom, Australia, New Zealand, and Italy. It allows users to buy and sell items, which are mostly used and vintage pieces of clothing.

## History

[edit]

Depop was founded in 2011 by entrepreneur Simon Beckerman at an Italian technological incubator and business start-up centre H-Farm.[3] Beckerman came up with the original outline of the application during his time working on PIG, a fashion magazine based in Italy that he co-founded.[4][5] The idea was to create a platform where products shown in the magazine could be purchased by users online.[4] This idea turned into a concept similar to a flea market but on the internet, where people could sell their items while also being in control of advertising, public relations, and the creative process behind their accounts.[5] While being financially supported by H-Farm, Beckerman worked within a team to create and lay out the Depop application while exposing it to numerous investors.[5]

In 2013, Beckerman became a member of the company's board to help improve the application and business while concurrently ceding his role of CEO.[6] Maria Raga, Depop's co-founder and former CEO, took on the role of vice president of operations in 2014, and in 2016, she became chief executive.[6] According to Raga, the main goal while developing Depop was to become the next Airbnb or Spotify, but to make an impact on fashion.[6]

Paolo Barberis and Nana Bianca were two of the first investors in the platform in 2012 with a seed investment.[7] Its headquarters were moved to London in 2012.[8] Depop expanded and opened additional offices in Milan and New York City.[9] Beckerman raised €1 million in funding in October 2013 from Red Circle Investment and brought on Faroese Runar Reistrup as new CEO.[8] In 2015, Depop secured another investment of $8 million from Balderton Capital and HV Capital.[9]

In March 2016, former CEO, Runar Reistrup, stated that Depop's growth was achieved through word of mouth.[10] During his time as CEO, this growth involved taking Depop as a startup and working to raise funds to eventually amass a significant user base within the United States.[11]

In June 2019, Depop raised $62 million in Series C from General Atlantic to fund its expansion. Previous investors HV Capital, Balderton Capital, Creandum, Octopus Ventures, TempoCap and Sebastian Siemiatkowski also participated.[12] During this time, Depop held workshops and conversations as part of their Depop Live NY events,[6] and the company also opened a London store through their partnership with Selfridges.[13]

In 2020, Depop's gross merchandise sales and revenue both more than doubled to $650 million and $70 million respectively.[14] This may be attributed to Depop's responsiveness to user trends, its lack of issues regarding inventory management, and the increase in users looking to resell.[13]

As of 2024, Depop has over 35 million users, according to their website.[15] It is the 10th most-visited shopping platform for Gen Z consumers in the US,[16] and, in a poll conducted by The Strategist in 2019, Depop was voted by teenagers as their favorite resale website.[17][18] According to Taylor Lorenz of The Atlantic, Depop draws in Gen Z users through being easily accessible and having affordable prices, and much of its user base uses it to track trends in fashion. Popular sellers on the platform often go on to become social media influencers.[19]

### Acquisition by Etsy

[edit]

In June 2021, Depop was acquired by Etsy for $1.6 billion in cash, making it Etsy's most expensive acquisition; however, Depop continues to operate as a standalone brand independent from Etsy.[15][20] This means that in addition to Depop keeping its existing team, the company retained its London location.[21] At the time of acquisition, Etsy CEO Josh Silverman’s goal was to counteract the influx of buyers starting to go back to physical shops for their purchases.[22] He saw Depop for its potential as a platform supporting a variety of products and creating a greater community of users.[21] According to Silverman, Depop may expand and improve its services for its significant Gen Z user base.[22] For Etsy, this acquisition maintains the company's foothold in the clothing industry and allows the company to expand its customer base to a younger demographic; at the same time, Depop is now able to make use of Etsy's company operations.[13]

When Maria Raga relinquished her position as Depop's CEO in 2022, Etsy assigned the role to Kruti Patel Goyal, who was Etsy's former chief product officer and a leader there for eleven years.[23]

## Business model

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### Selling

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Depop operates as a marketplace and social platform, where users can follow friends and other influencers to view their buying and selling activities. Through the platform, users are able to sell branded and designer items, as well as vintage pieces.[24] Depop users are also encouraged by the platform to use other social networking services such as Instagram to promote their shop profiles.[25] Celebrities have resold their own items on Depop, with some donating proceeds to charitable causes.[26]

Depop's user interface is modeled after that of Instagram. According to Depop, users who list and sell items provide their own photos with item descriptions. Users also note their designer items' authenticity and if they include any labels, tags, and receipts.[27] These listings will appear in users' feeds. The platform's "Explore" page features items picked out by Depop staff.

According to Depop, purchases are made via Apple Pay, Google Pay, credit and debit cards, and Klarna. Depop payments stay in-app, allowing for the company to mediate disputes and process refunds. Depop payments allow sellers to directly receive their payments in their bank account.[28] To get paid by Depop, a seller has to add a bank account and verify their identification by uploading an ID.

On July 18, 2024, Depop CEO Kruti Patel Goyal announced the removal of selling fees for US sellers, while maintaining a payment processing fee. This policy adjustment aimed to enhance seller revenue and support the growth of the second-hand market.[29]

### Buying

[edit]

A Depop transaction includes the agreed sale price of the item, shipping fees, VAT or other applicable taxes and duties, and the marketplace fee for buyers in the U.S. or U.K.[30] For international deliveries, packages may be subject to import taxes, customs duties, or fees, payable upon arrival or at checkout if Depop collects the tax on behalf of the buyer. For domestic purchases, relevant taxes may be collected by the seller or charged by the platform at checkout, ensuring no additional taxes are due upon delivery.[31]

For users in Australia, the United Kingdom, and the United States, Depop allows users to receive a full refund if their item does not arrive, arrives damaged, or is considerably different from the original when the issue is reported within 30 days.[31]

### Competitors

[edit]

As of June 2021, Depop's competitors include Vinted, a platform founded by Milda Mitkute and Justas Janauskas in 2008 and valued at €3.5 billion, as well as the U.S. resale site Poshmark, valued at $3.5 billion.[4]

Additional competitors include Grailed, a peer-to-peer e-commerce site founded in 2014 that is recognized for its high-end second-hand menswear and streetwear, and Vestiaire Collection, a European resale app established in 2009 which specializes in authenticated pre-owned luxury items.[24]

The popularity of Depop has negatively impacted traditional second-hand stores, which can struggle to compete due to high labor costs and quality demands.[32] There is an oversupply of clothes with the rise of fast fashion; this has taken a toll on the revenue aspect of the second-hand clothing industry.

## Criticism

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In November 2019, Business of Fashion reported that users within the Depop app were receiving sexually suggestive messages.[33]

In February 2020, Jessica Hamilton, a Depop buyer, reported that she found many scammers on the platform.[34] She noticed this issue after she attempted to purchase a Nintendo Switch from a seller who would suspiciously only accept payment through a direct bank transfer without buyer protection.[34] Hamilton blamed the company for its lack of action and relaxed security measures compared to other e-commerce sites, which made the platform especially susceptible to hackers.[34] Without a clear strategy for managing scams, Depop lost some users' trust because of its negligence.[34]

In October 2020, some Depop buyers were tricked into paying sellers directly to bypass Depop's buyer protections, and the Depop sellers then sold those users' information on the dark web.[35] In response, Depop claimed that it would improve security through mandatory password updates and multi-factor authentication.[35] Users have criticized Depop for belatedly taking action against this issue.[35]

## References

[edit]

1. ^ Stych, Anne (2 June 2021). "Etsy acquires clothing resale platform Depop for $1.6 billion". American City Business Journals.
2. ^ "Number of Users on Depop 2024". Depop. Retrieved 3 November 2024.
3. ^ Morrison, Emma. "Artefact – In conversation with | Depop founder Simon Beckerman". Artefact. Archived from the original on 16 July 2015. Retrieved 21 June 2016.
4. ^ a b c Neate Wealth, Rupert (2 June 2021). "Etsy buys secondhand clothing app Depop to tap into gen Z". The Guardian. ISSN 0261-3077. Retrieved 13 November 2024.
5. ^ a b c "Feeling The Pre-Love: The Rise And Rise Of Depop". Esquire. 24 July 2020. Retrieved 13 November 2024.
6. ^ a b c d "Simon Beckerman & Maria Raga | BoF 500 | The People Shaping the Global Fashion Industry". The Business of Fashion. Retrieved 13 November 2024.
7. ^ "TechTalk con Simon Beckerman, Riccardo Donadon e Paolo Barberis su Depop, la startup diventata unicorno". la Repubblica (in Italian). 3 June 2021. Retrieved 11 June 2021.
8. ^ a b Azeez, Wale (27 October 2015). "Depop: We're all shopkeepers now". Politico Europe. Retrieved 21 June 2016.
9. ^ a b Lunden, Ingrid (29 January 2015). "Social Shopping App Depop Raises $8M, Hires Ex-Reddit GM To Break Into US Market". TechCrunch. Retrieved 21 June 2016.
10. ^ Reistrup, Runar (31 March 2016). "The Entrepreneur: Runar Reistrup, Depop". Startups.co.uk. Retrieved 17 July 2016.
11. ^ "Runar Reistrup | CEO - YunoJuno". Forbes Business Council. Retrieved 13 November 2024.
12. ^ "Depop, a social app targeting millennial and Gen Z shoppers, bags $62M, passes 13M users". TechCrunch. 7 June 2019. Archived from the original on 29 June 2019. Retrieved 7 June 2019.
13. ^ a b c "Social peer-to-peer marketplace: Depop". www.ellenmacarthurfoundation.org. 23 November 2021. Retrieved 13 November 2024.
14. ^ Scott, Charity L.; Kellaher, Colin (2 June 2021). "Etsy Buys Depop, Fashion Resale Site Popular With Gen Z, for $1.6 Billion". The Wall Street Journal. ISSN 0099-9660. Retrieved 25 August 2021.
15. ^ a b "Number of Users on Depop 2024". Depop. Retrieved 3 November 2024.
16. ^ "United States B2C Ecommerce Market Report 2022: Market is Expected to Grow by 11.80% to Reach $1,574.5 Billion in 2022 - Forecasts to 2026". finance.yahoo.com. 27 September 2022. Retrieved 23 October 2022.
17. ^ Gates, Meggie (27 August 2021). "Depop Is the New Instagram — but Not in a Good Way". InStyle. Retrieved 29 September 2021.
18. ^ Sherwood, Jessica (25 October 2019). "Depop: Can pre-loved clothes make fast fashion sustainable?". BBC News. Retrieved 26 June 2020.
19. ^ Lorenz, Taylor (13 June 2019). "Why Teens Are Selling Clothes Out of Their Closets". The Atlantic. Retrieved 29 September 2021.
20. ^ Paton, Elizabeth (2 June 2021). "Etsy is buying the fashion resale app Depop for $1.6 billion". The New York Times. ISSN 0362-4331. Retrieved 2 June 2021.
21. ^ a b "Etsy snaps up Gen-Z focussed shopping app Depop for $1.6bn". 2 June 2021. Retrieved 13 November 2024.
22. ^ a b "Etsy courts Gen-Z with $1.6 bln deal for fashion reseller Depop". Reuters. 2 June 2021.
23. ^ Shoaib, Maliha (15 June 2022). "Depop CEO Maria Raga steps down, replaced by Etsy's chief product officer". Vogue Business. Retrieved 13 November 2024.
24. ^ a b Calaza, Miriam García; Varela Casal, Cristina; Valencia, Juan Manuel Corbacho (2 January 2023). "Second-hand selling apps and the notion of luxury: trend networking and circular economy". International Journal of Fashion Design, Technology and Education. 16 (1): 70–78\. doi:10.1080/17543266.2022.2118376. ISSN 1754-3266.
25. ^ Vincent, James (2 June 2021). "Etsy targets Gen Z shoppers with $1.6 billion Depop acquisition". The Verge. Retrieved 13 November 2024.
26. ^ "9 Celebrities With Depop Shops To Start Frequenting Immidiately". Bustle. 13 July 2016. Retrieved 13 November 2024.
27. ^ Depop (13 November 2024). "Depop Seller Guide".
28. ^ Depop (4 November 2024). "Depop Payments".
29. ^ Safaya, Shemona (18 July 2024). "In data: Depop removes US seller fees in bid to grow secondhand market". yahoo!finance. Retrieved 13 November 2024.
30. ^ Depop, Depop (13 November 2024). "Marketplace fee for buyers". Retrieved 13 November 2024.
31. ^ a b Depop (13 November 2024). "Will I have to pay for tax or customs on my order?". Retrieved 13 November 2024.
32. ^ "The trendy second-hand clothing market is huge and still growing – yet nobody is turning a profit". www.bbc.com. 4 March 2024. Retrieved 13 November 2024.
33. ^ Lieber, Chavie (12 November 2019). "The Dark Side of Depop". Business of Fashion. Retrieved 21 April 2020.
34. ^ a b c d Syed, Armani (7 July 2024). "Depop's CEO on the Future of Fashion and the Path to Profitability". Time. Retrieved 13 November 2024.
35. ^ a b c "Depop reveals the environmental impact of seasonal secondhand switches". news.depop.com. Retrieved 13 November 2024.

## External links

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* Homepage
* Google Play link