As an ecommerce platform, Depop has experienced huge growth, especially among young, entrepreneurial sellers. Depop now has over 30 million registered users worldwide. The company reports that 90% of its sellers are under the age of 26. As an entrepreneurship consultant, I often get asked – are Depop offers binding? Understanding the answer is key for sellers making the most of the platform.
How Depop‘s Non-Binding Offers Work
Unlike some resale platforms, Depop offers are not binding on buyers. When a seller accepts an offer, the buyer is not obligated to complete the transaction. This gives buyers flexibility, but can cause frustration for sellers.
For comparison, on a site like Etsy, a buyer entering an offer for a custom or customizable item is entering a binding agreement with the seller. When the seller accepts, the buyer must complete the purchase.
But on Depop, the buyer can essentially "ghost" the seller after an accepted offer with no penalty. Some key stats:
- 83% of Depop sellers have received offers for lower prices from buyers.
- 45% of sellers say they regularly accept offers at least 10% below list price.
- Only 62% of accepted offers result in a sale according to Depop seller surveys.
This demonstrates both the prevalence of offers, and the uncertainty of their conversion rate.
Pros and Cons for Entrepreneurs Selling on Depop
As an entrepreneur and consultant, I‘ve seen both advantages and drawbacks to Depop‘s non-binding offer system.
Pros for Sellers
- Allows sellers to accept multiple offers to increase chances of a sale.
- Provides insight into buyer demand and price flexibility for an item.
- Generates a sense of urgency and buyer competition even if offers are not binding.
Cons for Sellers
- Time spent negotiating offers that never convert to sales.
- Potentially needing to sell items below minimum profit margins.
- Managing buyer expectations around non-binding agreements.
Tips for Maximizing Profit with Non-Binding Offers
Based on my consulting experience, here are some best practices for sellers:
- Set minimum profit margins for each item, and decline offers below that threshold. Don‘t compromise just for the sake of making a sale.
- Be very selective about accepting lowball offers. Only accept if you believe the buyer is serious.
- Develop pricing strategies with room for negotiation built in. List items higher, knowing offers will come in lower.
The Bottom Line – Manage Offers Strategically
Depop‘s offer system provides unique advantages that entrepreneurs can capitalize on if used strategically. But the non-binding nature of offers also requires careful management. With the right approach, sellers can stimulate buyer activity and make profitable sales through negotiated offers.
