Depop. Mercari. eBay. Facebook Marketplace. Poshmark. Nowadays, there’s no shortage of platforms for people to buy and sell their used goods or new products. But that also means that scammers have no shortage of victims to target on these same platforms. In fact, in a recent survey of buyers of these types of platforms, 1 in 3 of them had reported being scammed on the site. In many cases, customers would receive the wrong item, a lower quality item, or no item at all, with nothing but an empty box to show for their purchase.

The Scam Unveiled

There are two sides of the coin to scams on platforms like Depop; either the seller or the consumer can be defrauded. Take the following situation. Emily, a girl looking for a new thrifted top matching the styles she’s seen on TikTok, comes across something on Depop she think’s is the perfect fit. She purchases it, inputs her address, credit card information and all other necessary details but it turns out the listing is a scam. The lister of the item sends Emily an empty box. For all intents and purposes, a package has been shipped so according to the Depop platform the seller has held up their end of the bargain. In reality, Emily, incredibly excited to try out her new top, goes to open the box only to find it completely empty.

Now, Emily can try going through the Depop platform to file a dispute but the process is lengthy and there’s no guarantee Depop will side with her. Until then, Emily has lost her money, has no new top, and a clear path of things ever being made right. Being scammed for a top is a best case scenario, at most, you lose a few dollars. But for many, these scams have cost them even bigger. Many people make second-hand-designer purchases off of Depop. With bags worth thousands of dollars and accessories or shoes worth hundreds of dollars, there is a lot on the line for both buyers and sellers.

Emily’s situation represents the dangers of being a buyer on second-hand-marketplaces, but there are major risks associated with being a seller as well. Take Michael, a reseller on Depop for shoes. With major drops coming up for big sneaker releases by Nike, Michael is super excited to make some sales. He puts up some listings for shoes that he owns and within minutes makes a sale. He is ecstatic and can’t wait to send them out to his new customer. The next day, Michael sends out the order and the shoes are on their way halfway across the country. When they arrive at the buyer’s location, the buyer opens up a dispute with Depop. Michael gets a notification and is extremely confused. After all, he did nothing wrong.

It turns out that the buyer took a picture of a fake version of Michael’s shoes to send as supposed “evidence” to Depop. The buyer lies, saying that Michael sent them a fraudulent pair of shoes and at this point there’s little that Michael can actually do to prove he didn’t. It becomes a “he said she said” situation and until then Michael no longer has his shoes and the receipt of his payment is also put on hold. This is just one of the many dangers associated with being a seller on these platforms, especially since such transactions are currently irreversible.

Depop’s Approach

The Depop platform acknowledges that this is an incredibly serious issue and is actively trying to mitigate it. The Buyer protection program makes an attempt to make the platform safer for buyers. According to the policy “if your item doesn’t arrive, arrives damaged, or is significantly not as described, you’ll get a full refund if you report the issue to us within 30 days of the date of purchase” and “you don’t need to take any additional action to be eligible.” But while the effort is appreciated, many consumers don’t actually see the policy playing out that way. Take one Reddit user who bought a pair of sneakers and received an empty envelope in the mail instead. When he sent the proof to Depop, the response was much less congenial than he expected. Even after agreeing to a refund, Depop never sent him his money back and was left short of over $140 dollars. In fact, in many cases, users of the platform have been banned from the entire platform for filing disputes and chargebacks from getting scammed by sellers.

The story is eerily similar for Depop’s seller protection program as well. According to Depop’s website “rare case that the item is lost or damaged in transit, your sale will be eligible for Depop Protection.” But this policy is only applicable to sales up to $300 and Depop makes it very clear that the protection program is not an “insurance policy, a warranty, nor a guarantee.” The impact of this policy was detrimental for one Reddit user who explained how they sent a sale over in November of 2021. The seller made it clear on their bio that they are not responsible for lost mail and urged buyers to double check their shipping address before submitting. The seller sent over the item but got a message a few hours later saying that the seller accidentally put the wrong shipping address. A dispute was filed and Depop explained to the buyer that the seller had seller protection but then the buyer opened up another dispute with Paypal which gave them a full refund, leaving the seller without product and without payment. The Depop protection policy’s have many workarounds and are not a truly secure way to protect business on the platform. Still, many people continue using the platform simply because there is no better alternative to send payments securely, at least that was until the introduction of MidPay.

Why MidPay is the Solution

MidPay is an escrow-based transaction service meant to simplify transactions and protect your funds. By using an escrow protocol, MidPay ensures that your funds are never actually sent until all conditions of the transaction are met. The app is also able to help prevent fraud in the first place since sellers know they won’t receive the funds until they fulfill their part of the deal, incentivizing honest transactions. Further, if any disputes occur MidPay’s resolution process ensures fair outcomes for everyone involved. Finally, transparency and trust are integral to any transaction and MidPay’s processes promote both things to make online transactions safer and more reliable. So the next time you buy second-hand or sell goods to someone you don’t know, you can rest more assured that both your funds and products are safe.

Download MidPay on the App Store today!