Discover everything you need to know before selling on Poshmark, such as Poshmark's fees, why Poshmark charges what it does, and how to take advantage of all of its perks!
What is Poshmark, and why use it?
Founded in 2011 by Manish Chandra, Poshmark is an extremely popular and reputable marketplace that lets you buy and sell clothing, accessories, handbags, shoes, dresses, and even makeup online. Of all of the reselling platforms, Poshmark is considered one of the easiest to use, with an extremely user-friendly interface and ultra simplified selling.
You can use Poshmark from their mobile app or website, where you can post, manage your listings, make sales, and network with the Poshmark Community of nearly 80 million users!
Sounds pretty great, right?
It is! That said, it is crucial to also consider the costs of selling on Poshmark as well. Marketplace fees can make a significant difference to your profit potential, especially if your resale business is a full-time endeavor. By staying informed about various fees, you can better plan out your business, and create appropriate prices for each item that you list. To ensure your sales are successful on Poshmark, you will need a simple strategy.
You may also be interested in: The Poshmark Bible: How to Get Started Selling on Poshmark
What fees are associated with Poshmark?
It's always free to list an item for sale on Poshmark, and for the most part, their fees are pretty straightforward!
For all sales under $15, Poshmark takes a flat commission of $2.95. You keep the rest. For sales of $15 or more, you keep 80% of your sale and Poshmark's commission is 20%. If you have higher-end items, most of your orders will qualify for this commission rate, and this policy applies to both individual items and Poshmark bundles.
In order to help gauge what kind of profit margin you will be making with these commissions, there are many Poshmark fee and profit calculators that can quickly find the sale price for your desired profit target, such as the Omni Profit Poshmark Fee Calculator.
Even though extra fees are never fun, these costs do allow for a lot of perks that other platforms may not offer. For example, Poshmark fees help cover the shipping rate for packages weighing up to five pounds! This makes it super easy to navigate and download a prepaid shipping label, without having to worry about figuring out the cost of shipping yourself. New sellers also don’t have to charge or pay sales tax, making it easier for them to start selling on Poshmark.
Poshmark will sometimes offer closet clear-out days where you can lower the price on a particular item, and users can choose to accept the offer and buy the item immediately within a six hour window. These special promotions are beneficial for sellers because Poshmark covers any shipping discount that you choose to offer… meaning you can attract a lot more offers and increase your sales.
Is there any seller protection?
Absolutely! When one of your items sells, Poshmark sends a prepaid and addressed USPS Priority Mail shipping label for your package. If you use the provided label and your package is scanned into the USPS tracking system, you will be completely covered by Poshmark should the package get lost in transit. All orders over $400 do require a signature upon delivery in order to provide further protection. When the package is first scanned into the USPS mail stream, Poshmark sends both the seller and buyer an email with the tracking information. Once USPS confirms that the item has been delivered, Poshmark informs the buyer and requests that they promptly review and accept the order.
If a buyer reports a problem with their order, they are required to upload details and photos to support a return request. The Poshmark team then carefully reviews the request and offers a fair resolution. Resellers really tend to love the Poshmark Return Policy; Poshmark does not allow returns in general, unless the item is not as described (wrong item sent, undisclosed damage, not authentic, etc).
When are earnings from a sale received?
Once your sale has been delivered and received by your buyer, the earnings from your sale are yours. That is to say, once the buyer accepts your item, your earnings will be automatically deposited into your Poshmark account balance, or via direct deposit to your bank account or by a check on request. Buyers have up to three days to accept the item and after that, the funds are automatically released to the seller.
You may also be interested in: 10 Great Marketplaces Every Reseller Should Consider
So, what’s the verdict?
While Poshark is a slightly more expensive platform to use by comparison to others, their commission structure means they don't have extra charges like PayPal fees, a cash-out payment,, or listing fees. Poshmark also provides the easiest listing process, most simple shipping options, the best seller protection, and the most advanced search engine optimization (SEO) on major search engines!
It is understandable that many resellers are torn on which platform to choose after weighing all of the various factors, but thanks to Vendoo, you don’t have to choose! Vendoo helps resellers easily crosspost their items onto multiple marketplaces in a fraction of the time that it takes to do so manually. Your sales are not limited to one marketplace such as Poshmark, so your options for profit are plentiful!
Do you sell on Poshmark? If so, do you think the fees are worth all the perks? Leave us your feedback in the comments below!
