Find your pricing formula

Please note: the listing price is solely determined by Sellers and they are free to set their own price at whatever level they choose. This article contains guidance and tips on factors Sellers may want to consider when independently setting their prices.

What is product pricing?

A product pricing process is a tool that businesses - and Depop users - alike, can use to help set prices for their products. This is where the product pricing process comes in. It’s a popular method used that takes into account a variety of factors (both internal and external) that may impact its worth. The product pricing process is important because finding the right price which attracts buyers to your shop can help to sustain – and grow – your online shop. By setting prices that your products deserve, you could be making some extra cash to add to your savings or spend on new-to-you pieces on our platform. It’s worth mentioning here that you can always change the selling price of an item after the listing has gone live. You might decide to reduce the price over time as you see fit or offer discounts in line with Depop brand campaigns to encourage sales. It’s still important to consider what is an appropriate selling price though, so keep reading to learn more about how you can establish this.

Using a pricing model to price your products

As a Depop seller, you are always responsible for setting your own pricing – we’re just here to offer some friendly advice. Remember that coming up with pricing doesn’t have to be an overwhelming or complex task. You can learn and use the following (simple) formula to work out the right price for each of your items. Start by considering all of the outgoing costs you’ve incurred when preparing your product for sale on Depop. When you have this figure, add it to the amount of profit you’d like to make on the sale so you’re guaranteed to make some extra cash. The figure you’re left with after completing this calculation is a selling price you could use for that specific item. This pricing model is known as cost-plus pricing and it’s a quick and easy technique that you can utilize to price all of your secondhand products. Find out more about this model below…

The Cost Pricing Formula

There is a wide variety of pricing strategies that you can refer to when setting selling prices in your Depop shop. And each one might come in useful at different stages on your seller journey. The cost-pricing method is a popular formula for pricing products but there are a number of others you could also choose depending on your own individual needs. This product pricing formula is super easy to understand and follow, regardless of the different types of products you choose to sell in your store. Want a detailed breakdown of this cost and pricing formula so you can try it out for yourself? Then just follow these 3 easy steps as a starting point for calculating your product prices.

1. Calculate your costs: 

The first thing to do when using a cost plus pricing formula is to work out all of your initial costs. A good place to start is by calculating the cost price of your item – how much did you spend on it originally? If you’ve had it for a long time or if there are any noticeable defects that affect its overall quality, you might consider adjusting this amount to reflect the current condition of your product. This is also the point at which you should include any other variable costs you’ve faced when preparing your item for sale, such as packaging materials, or dry-cleaning fees. Double-check that you’ve not missed anything out here and remember to be accurate with the amounts you include. The total cost, along with other factors like seasonality and buyer expectations, are all factors that may have an impact on the final selling price.

2. Decide how much you want to make 

The next stage when calculating a resale price is to think about the amount of proceeds you want to make if and when the item sells. Before settling on a percentage here, remember that you’ve still got to include any fixed costs (the next and final stage of calculating your selling price) Do some market research and see how similar items to your products are priced (either on Depop or in the wider market). This will help when setting a realistic price for your product.

3. Take into account fixed costs: 

For the last part of the cost-pricing process, make sure you take into account any fixed costs you’ll have to pay for, such as Depop selling fees. Ideally, these should all be included in the costings before your product goes live to avoid any surprises later down the line. After calculating these fixed costs, it’s worth double-checking your intended price markup too. You can do this by using the following pricing formula – simply subtract the total cost from your selling price to work out how much cash you are likely to receive if you sell your item.

Pricing formula case studies

Here are a few Depop pricing case studies for you to check out. 

Please note: We asked real Depop sellers about their experiences of being a seller on Depop for the specific purpose of including their feedback in this blog. All quotes and testimonials included below were provided in response to that request and represent the seller’s own opinions.

These pricing case study examples include some useful advice about the product pricing process from experienced Depop sellers. So if you’re interested in learning more about real-life selling experiences on our platform, read through our pricing strategy case study examples below:

Case study 1: The seller who mixes thrift and handmade items

@premiumzoo is an Australian seller who stocks thrifted items as well as custom and handmade pieces. Her top advice when it comes to pricing items in her Depop shop is to determine a selling price that reflects the dedicated work put into each piece (not forgetting to take into account the price of materials too). 

Research the market

@premiumzoo

One-of-a-kind adds value

@premiumzoo

Case study 2: The wholesale thrifter

@kuratedvintage is a US seller who sources their items through wholesalers. They approach product pricing with a focus on keeping it competitive and attractive to potential buyers. Their selling prices factor in how rare an item is as well as the amount of effort they put in to source their unique pieces. 

Keep it Competitive

@kuratedvintage

Count the man-hours

@kuratedvintage

Case study 3: The vintage sportswear hunter

@vintagevin is a US seller that focuses on selling vintage sportswear and streetwear. When they’re thinking about determining an item’s selling price, they consider things like how unique, desirable or nostalgic a product is as this affects its worth. But most important does the final selling price make sense?

Assess the hype

@vintagevin

Price for worth

@vintagevin

Price Formula Recap

Whatever pricing formula you decide to use to determine your selling prices, it’s crucial that it works for you and the items in your Depop shop. Perhaps try a few different pricing models until you settle on a method  – and final amount – that you’re happy with.

There’s not one specific way to get this right, but we hope the guidance from the article above helps to figure out an appropriate selling price for your listings.