The UK-based online thrifting platform Depop is a very well-known name amongst shoppers all over the world. This platform not only helps save money on used vintage fashion and accessories but also connects users to a wide range of audiences so that they can grow their small businesses.
On the other hand, Mercari is a Japanese e-commerce company where sellers come together to sell their used items at a cheap rate. Mercari is similar to eBay where items from every category are traded.
Even though both marketplaces focus on thrifting items, their business model and rules are different from each other. Here are the important differences that a seller need to consider before registering.
1. Registration
The registration process is very simple. Visit Mercari.com or Depop.com and sign up with the necessary information such as Name, email Id and profile picture to get started. Upon registering the first step is to list the items that you no longer need on the platform. Make sure the product is not damaged, click some nice photos, and upload them with detailed descriptions to start selling.
Even though the registration process is similar on both platforms, Depop is much stricter with the security and authenticity of the users. So, you need to first verify during signing up before using the platform.
2. Shipping
Depop provides mainly two shipping options for their users. Sellers may either choose to ship on their own using third-party delivery aids or use Depop’s shipping services to deliver their sold products. If you choose to ship on their own, the merchant will be fully responsible for creating a shipping label, packing, updating the customer, and dropping off the item, and if you want to ship with Depop then you can download the label from Depop, pack the item securely and hand them over to Depop’s shipping partner.
Whereas, Mercari provides three shipping services for their sellers. Like Depop they can either choose to ship on their own or use Mercari’s prepaid label to ship items. Sellers can also choose ‘Mercari Pack and Ship’ where a UPS Store Certified Packing Expert will come and do all the work from packing, shipping, and updating for busy sellers.
On both platforms, sellers can choose who pays for the shipping.
3. Fees and Payments
None of the platforms charges a listing fee to the sellers. Anyone can list their items at absolutely zero cost.
Depop charges a 10% fee on each sale which can only be paid if the seller links their PayPal account with Depop. Once a sale is made, Depop automatically subtracts the commission fee and shipping cost from Depop Balance and the seller can transfer the profit directly to their bank account within 10 business days. Read this article on how to transfer Depop Balance.
Mercari also charges a 10% commission fee on each product. Once a product is sold through the platform, the profit will be automatically paid to the seller after subtracting the commission. It also charges a payment processing fee of 2.9% plus a $0.50 shipping charge per sale. If the seller needs to withdraw instant cash, Mercari will charge $3 per cash out, and in the case of bank transfer, the seller needs to pay $2 for withdrawals under $10. Apart from that Mercari also charges a cancellation fee of 5% of the product price if the seller gets frequent cancellations. The seller needs to pay for special services such as Mercari Authenticate which can vary from $5 to $10. Sellers can withdraw money via direct deposit to a linked bank account which may take up to 5 business days to process or withdraw instant cash up to $600 per month via instant pay by adding an eligible Debit Card.
In Conclusion
It is difficult to state which e-commerce platform is better than the other as both Depop and Mercari are very similar marketplaces with similar business ideas and the same commission fee structure for sellers. However, the marketplaces deal with different target audiences and categories. Depop focuses more on the US and UK markets whereas, Mercari focuses on Japan. To choose the perfect platform for yourself you first need to identify your business structure and your target audience. Understand your and your business’s needs and choose what seems best for your growth.