Online selling platforms have made it easier than ever to turn old clothes and other unwanted items into cash. But with so many options to choose from, it can be hard to know where to start. In this blog post, we'll compare two of the most popular choices: Poshmark and eBay. Both platforms have a lot to offer, but which one is the best fit for you? We'll break down the pros and cons of each platform to help you make the best choice.
Selling on Poshmark
Founded in 2011, Poshmark is a social commerce marketplace known for buying and selling secondhand fashion. Poshmark has recently expanded its categories to home goods and electronics. One of the best things about Poshmark is that it is very user-friendly. The app walks you through each step of listing your items, and they also offer a helpful blog with tips on taking great photos and writing good descriptions. Here are some pros and cons as a seller on Poshmark.
Pros of Selling on Poshmark
Poshmark is a great place to bundle items because you can create collections of items that complement each other. Not only does this make it easy for buyers to find everything they're looking for in one place, but it also gives you the opportunity to upsell. For example, if a potential customer "likes" multiple items from your store, you can seamlessly bundle their items in one cart and help them save money on shipping.
If you're looking for the best shipping option in the market, look no further than Poshmark. For just $8, you can ship up to 5 pounds of goodies via USPS Priority. This encourages potential customers to buy more items from you (bundling) so they can save money on shipping. Hands down, Poshmark is the best platform to sell bulky items that weigh more than a pound because of the shipping price. All you have to do is print out the label and drop off the package at your nearest Post Office. Easy peasy!
eBay may have been the OG of online marketplaces, but when it comes to customer service, they could learn a thing or two from Poshmark. Although Poshmark doesn't offer phone or chat support, they are quick to respond to queries submitted through their online form. And if your package is lost or damaged, you're covered - Poshmark will issue a refund for both seller and buyer.
Have you ever had a buyer request a return after you've already shipped the item? It's the worst. You have to go through the hassle of dealing with the return yourself, and on top of that, you have to pay for return shipping. But when you sell on Poshmark, returns are a breeze. Poshmark handles all returns for you, and even pays for return shipping. So if a buyer requests a return, just sit back and relax. Poshmark will take care of it for you.
Cons of Selling on Poshmark
When compared to all other reselling online platforms, Poshmark has the highest selling fee which is a 20% commission on items that sell for over $15. If your item sells for under $15, then Poshmark only charges a $2.95 flat fee. However, Poshmark does offer some discounts and promotions that help offset those fees. For example, they occasionally offer waived shipping fees (for buyers) and the potential to win Poshmark credits when they run a contest.
Poshmark is a great platform for selling clothes, but the shipping costs can be a real pain for sellers who are trying to move smaller items. The $8 shipping fee is definitely a con when it comes to selling small items that weigh less than a pound, and it can really eat into your profits. As a seller, you can offer your customers discounted shipping or free shipping, but for sellers who are trying to move smaller items, the $8 shipping fee can be a real deterrent.
Poshmark is a social platform, which means that most sellers have to be at least somewhat active on the platform to see more sales. You can do more than just share your listings and respond to questions – you can also share other people’s listings, attend Poshmark virtual parties, and list and relist items frequently. The more you engage with the Poshmark community, the more likely you are to see success as a seller.
You have to wait to get paid. Once the buyer receives your package and has accepted the item, your earnings will be automatically deposited into your Poshmark account. Buyers have up to three days to accept the item and after that, the funds are automatically released to you, the seller. To deposit your Poshmark earnings to your bank account typically takes 1-2 business days.
Selling on eBay
eBay is one of the oldest and most well-known online selling platforms. eBay has been around since 1995 and today, it is estimated that there are over 138 million active users on the platform worldwide. It is available in 180 countries and eBay's top user bases are the USA, UK and Germany. On eBay, you can sell just about anything you can think of, including clothes, electronics, furniture, home goods, beauty products, commercial/industrial products, and more. Unlike Poshmark, eBay allows sellers to reach a global audience of potential buyers. As a result, eBay is well-suited for both casual sellers and professional sellers. Here are the pros and cons of selling on eBay.
You might also like: 10 Great Marketplaces Every Reseller Should Consider
Pros of Selling on eBay
As an eBay seller, you have access to a range of selling tools that can help you increase sales and boost your business. For example, you can send fixed or percentage-based coupons to potential customers or existing ones, run a sale or even send a weekly or monthly newsletter to your existing customer base. The best part is having access to eBay's Terapeak Product Research and Terapeak Sourcing Insights. These tools allow you to research what your competitors are doing, how they're doing it, and how you can improve your own listings. Use data from millions of eBay transactions to optimize your business performance and make informed decisions about listings, and merchandising for higher conversion rates! So if you're looking for ways to grow your eBay business, make sure you take advantage of all the selling tools at your disposal.
eBay is the go-to marketplace for buying and selling just about anything (minus restricted or illegal items, of course). No matter what your niche, there's an audience on eBay waiting for you. Books, antiques, taxidermy, handmade items, auto parts… the list goes on and on. eBay also allows you to do local pick-up where the buyer purchases the item on eBay, prints a QR code, and shows the QR code to you during arrival. You can find just about anything on eBay, which is why it's such a popular marketplace. With over 138 million active users, there's sure to be a buyer for whatever you're selling.
eBay first became famous for its auctions and has remained the top auction marketplace on the web ever since. This gives you much more flexibility as a seller- you can put items up for auction to get a higher price. The option to set a reserve price ensures that you won't sell something for a fraction of what it's worth. This auction feature is most popular with antique sellers or rare items that do not have a "market price". For everything that doesn't auction well (such as the majority of in-production items), you can use Ebay's Buy It Now listings.
If you're looking to expand your eBay selling beyond the bounds of the United States, then eBay's Global Shipping Program is a must. With eBay's Global Shipping Program, you can reach buyers in over 180 countries and territories, and eBay will take care of all the shipping details for you. All you have to do is ship the item to eBay's global shipping hub in Kentucky and they'll take care of customs forms, international shipping, and any possible issues that may arise. If for any reason the package arrived damaged or did not arrive at all to its destination, eBay will refund you and the buyer. And best of all, eBay's Global Shipping Program is totally free for sellers.
Cons of Selling on eBay
The eBay fee scale varies depending on the type of item you list, the selling price, and whether or not you have an eBay store. So calculating your net profit for an item can be challenging especially for new sellers. Sellers pay both an insertion fee (cost to list an item) and a final value fee. eBay also offers upgrades to listings, such as a bold listing, a larger gallery for photos, and subtitles. Also, promoting your listing cost money. These fees add up over time, taking away from the profit. With that in mind, if your profit is minimal, you'll either need to increase the volume of items you are selling or find products with better profit.
Complex Listing Details
If you're used to the streamlined simplicity of Poshmark, listing on eBay can feel a bit overwhelming. You have to provide quite a bit of information about your item, including multiple photos from different angles. And then there's the whole issue of shipping. On Poshmark, you just select whether you want to offer a discount on shipping to your buyer or not. The only shipping carrier option you have on Poshmark is USPS Priority or USPS ground (for electronics only). On eBay, you have a whole range of shipping options to choose from: USPS, UPS or Fedex and it can be tough to figure out which one is best for your particular item. Overall, listing on eBay requires you to really know how shipping works in order to save money.
When you're selling on eBay, you're always at the mercy of your customers. If they leave you negative feedback or file for an "item not as described" claim, it will have an effect on your sales. Your items won't be shown to as many customers and with too much negative feedback, eBay will charge you more selling fees. Of course, this is set in place to protect customers on eBay. However, this policy is also being abused by the customers who are not happy with the seller's solution. For instance, if a customer wishes to return an item and does not want to pay for return shipping, the customer would file an "item not as described" claim to push the return and not pay for shipping. Of course, this scenario does not always happen but if you are a seller and want to keep your metrics positive, you are essentially forced to accept returns and/or accept free returns where you pay for the return shipping. Also, keep note, eBay's return policy is that customers have up to 30 days to return an item. Yikes!
Buyers Can Backout
When you list an item on eBay, you hope that someone will make an offer and you'll be able to sell it for a good price. But what happens when someone makes an offer and you accept it? The buyer has up to three days to make a payment, and if they don't, you can cancel the transaction without it being counted as a strike against your seller profile. That means that, as the seller, you're essentially waiting on pins and needles for the payment to come through. And if it doesn't, you lost an opportunity for that item to sell while it was pending.
There's no denying that both Poshmark and eBay are great platforms for reselling new or secondhand items. But which one is right for you? If you're looking for simplicity and a streamlined selling experience, Poshmark is the way to go. But if you're willing to put in a little extra work for the chance to reach a global audience and scale your reselling business, eBay is the better choice. Of course, there's no wrong answer here. It all depends on your personal preferences and goals. If you are looking into selling on both platforms, we recommend giving our cross-listing software a try!