Depop Reports Significant Revenue Growth Amid Ongoing Losses
Published: October 7, 2025
In a recent financial disclosure, the peer-to-peer shopping platform Depop has revealed a remarkable surge in revenue for the year 2024, despite continuing to operate at a loss. The London-based company, which is a subsidiary of Etsy, reported a 42% increase in revenue, reaching £101.6 million. However, the operating loss has only slightly narrowed, from £49.1 million in 2023 to £42 million in the latest fiscal year. The net loss also decreased, falling from £48.6 million to £40.44 million.
User Growth and Engagement
Depop’s user base has seen substantial growth, with registered users climbing to 43.5 million by the end of 2024, up from 35 million the previous year. This increase is particularly notable in key markets such as the United States, the United Kingdom, and Australia. The platform’s engagement metrics are promising; approximately 57% of sellers who made a sale in 2024 also made at least one purchase, indicating a strong level of interaction within the community. Notably, nearly 94% of the gross merchandise sales (GMS) were attributed to the apparel category, underscoring Depop’s focus on fashion.
Market Trends and Future Potential
The secondhand clothing market is projected to grow significantly, with estimates suggesting it will expand at a rate three times faster than the overall clothing market through 2028, potentially reaching a value of $350 billion. This trend positions Depop favorably as it continues to carve out its niche in the burgeoning resale market. The company has emphasized that it is still in the early stages of its growth lifecycle, suggesting that there is ample opportunity for further expansion.
Strategic Changes and Innovations
One of the key highlights of 2024 was the evolution of Depop’s fee structure. The company eliminated seller fees in the UK and US, replacing them with a buyer marketplace fee. This strategic shift aims to make the platform more appealing to sellers, resulting in a “meaningful acceleration in listings” since its implementation. The company has also reported a strong year-on-year increase in GMS, driven by its expanding market share in the US and Australia, although it faced a decline in the UK market.
Depop has positioned itself as the fastest-growing online apparel marketplace in the US, and executives believe there is still “significant headroom for further growth.” Investments in marketing, platform enhancements, and seller engagement have all contributed to the overall improvement in performance.
Technological Advancements
In 2024, Depop made significant strides in technology, particularly with the introduction of AI-powered selling tools. These innovations allow users to auto-populate listing details simply by uploading a photo, streamlining the selling process. The company also reported its best year in paid marketing-driven GMS, fueled by growth in performance marketing channels and improved return on investment (ROI). The successful scaling of mid-funnel channels has broadened the platform’s reach, enhancing its visibility in a competitive market.
Additionally, Depop has prioritized user safety by enhancing its trust and safety measures. The launch of AI-driven detection and security features aims to create a more secure environment for both buyers and sellers, addressing concerns that often accompany online marketplaces.
Conclusion
While Depop continues to navigate the challenges of operating at a loss, its impressive revenue growth and expanding user base signal a positive trajectory for the company. With strategic changes in its fee structure, technological advancements, and a focus on user engagement, Depop is well-positioned to capitalize on the growing secondhand clothing market. As the company continues to innovate and adapt, it remains to be seen how it will leverage its current momentum to achieve profitability in the coming years.
