Teens are making up to $300,000 selling secondhand clothes on this Instagram-like shopping app, which is now planning a huge US expansion. Here's how it works.

Courtesy of DepopDepop is a social shopping app targeted at Gen Z shoppers.
  • Depop is a social shopping app that has been described as a mix of eBay and Instagram. It is largely targeted at Gen Z shoppers.
  • The company announced Friday that it has raised $US62 million in a round of funding led by New York-based venture capital firm, General Atlantic. It plans to use the funding to expand in the US and triple its user base there.
  • Since being founded in Milan in 2011, Depop has grown to have 13 million users in 147 countries around the world, according to the company. Some users are making a decent amount of money flipping their clothes and other belongings.
  • Here’s how to sell on the app.
  • Visit Business Insider’s home page for more stories.

Instead of spending weekends or school holidays washing dishes and waiting tables, entrepreneurially minded teens are launching mini businesses to earn money online.

This is largely thanks to new apps that have cropped up in recent years and enabled young shoppers to set up shop easily and buy or sell secondhand clothing and accessories.

Depop, which launched in Milan in 2011 and has quickly gained a cult following around the world, is one of them. This social shopping app counts companies such as Poshmark and ThredUp as its competitors and has been described as a mix between eBay and Instagram.

On Friday, the company announced that it has raised $US62 million in a round of funding led by New York-based venture capital firm General Atlantic. It plans to use this capital to expand in the US and triple its user base there.

Read more:
Teens are getting rich off this social shopping app as their shopping habits change the fashion industry

According to Rachel Swidenbank, vice president of marketplace at Depop, selling on the app can become a very lucrative hobby. Some sellers are pulling in as much as $US300,000 a year, she said.

While this isn’t pure profit – Depop takes a 10% cut of each sale, and there’s the cost to acquire inventory and ship it to customers – the overhead of running a business on the app are low. Plus, it’s accessible to any that has a smartphone.

Here’s how to set up shop on Depop:

The ease at which you can shop and sell items on Depop has been a major contributor to its success.

DepopYou need a smartphone and a phone number to register with Depop.

First, you need to download the app.


Depop will then ask you to create a username, link the account to your email address, and add a photo that represents your brand.


You’ll also need to describe the style of your brand and what you’re planning to sell. This description will appear just under your username on your personal page. You can also link to your Instagram page to promote yourself more.


Next, you set up your billing address details and link your account to your PayPal. This is where all payments are handled.


You also have the option to register as a business and add in the relevant tax details.

It’s as simple as that.


Once you have a profile, you can start listing new items for sale.


Depop advises sellers to post at least four photos and a video to give the item its best chance of selling.


You’re asked to select the category that the item falls under. These are umbrella categories, such as menswear, womenswear, or sports equipment, for example. You can add a more detailed description of the item in another box, however.


At this point, you’re also asked to set the shipping costs and decide whether you are prepared to ship the item internationally, which is usually more expensive.


The seller is responsible for handling the shipping and covering the cost.

As the cost of shipping is not determined until the item is sold (the seller will not know where they are shipping it to until that point), Depop advises you to make a guesstimate that should also cover the cost of packaging. There is a list of suggested prices in the help sidebar, and you’re required to set one price for national and then international shipping. These can’t vary by country.

Sellers should keep the buyer informed on the shipping details, mark the item as “shipped,” and keep a proof of postage.

If buyers ask to change the address, sellers should refund the order and ask the buyer to reorder and list the correct address.

Lastly, add the price of the item you’re listing. There are no set guidelines for pricing, but sellers are advised to benchmark their prices against other products listed on the app.


Customers can like, comment on, or save an item to their profile, much like you can on Instagram.

Courtesy of Depop

They can also leave reviews and rate the seller. This feedback appears on the sellers’ profile page.

Depop has amassed more than 13 million customers in 147 countries since launching in 2011, according to the company.

Courtesy of Depop

And it has its sights firmly set on young shoppers, who make up 90% of its users.

The company’s mission is to empower these shoppers to disrupt the fashion industry and give them the chance to become entrepreneurs.

“This company is for the next generation,” Swidenbank said.

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