The Poshmark platform is a social media site that connects people who want to buy and sell clothing, shoes, handbags, accessories, and other items on trends. It is like an online marketplace for gently used goods with millions of users and thousands of sellers. Poshmark is a popular app that offers an alternative to buying new clothes. However, many people are unaware of the costs they incur while using this app. Poshmark fees can vary depending on what you sell and how often you use the service. The blog will discuss Poshmark fees in detail so readers know exactly what they're getting into before signing up for the service.
What is the Poshmark Fee?
Like other online selling marketplaces, Poshmark also imposes fees to cover certain things to keep the platform organized and running. Poshmark seller fees are very simple and straightforward, just like what they've stated on their website. Poshmark takes a commission fee with a flat rate of $2.95 for all orders under $15. If you sold an item with a price of more than $15, you keep 80% of your sale, and Poshmark's takes the 20% as the commission fee. For example, you sold a denim jacket for $25. You take the $20 as your earnings, then $5 goes to Poshmark.
But remember that other than Poshmark fees, you should also consider shipping and packaging fees to make the most money out of your item. Experienced Poshmark sellers add packaging and shipping costs to the item's final price before publishing it on Poshmark. You may also use this strategy then offer a discounted shipping cost or free shipping to your "likers." This is an excellent strategy to boost your sales further.
Why Poshmark Charge Fees
Poshmark charges a flat rate commission fee of $2.95 for sales under $15 and a 20% commission fee on sales over $15. Here's the breakdown behind Poshmark Fees
- Keep the Poshmark Up and Running
Poshmark fees are there to help sustain Poshmark as a marketplace that connects buyers to sellers. The fees are there to keep the app updated, provide new features for buyers and sellers, pay rentals and employees, and help Poshmark grow as a platform to get you more buyers.
- Transaction Fees
Poshmark handles all the financial transactions. This means that all the transaction fees, including credit card fees, prepaid, pre-addressed shipping labels, and sales tax, are already covered from the commission fee Poshmark takes on your sale.
- Buyer and Seller Protection
Poshmark offers protection both from the buyer and seller to avoid scams and fraud from happening. It also provides customer service to assist you with different concerns, such as returns and refunds. This is also the reason why many trusts the Poshmark platform is because of its legitimacy and transparency.
If you think that Poshmark's fees are high enough, let's try to compare it with other marketplaces such as Etsy and eBay. Their fees exclude the additional credit card processing and transaction fees, which are more than the 20% Poshmark charge. The same thing goes for its shipping cost. Poshmark is straightforward in explaining all its fees. They only charge a flat rate fee, and they will hand everything to you hassle-free. Simply print the shipping label, send the package and wait for your earnings to be credited to your Poshmark account.
Poshmark charges a shipping fee of $7.45 for all its expedited shipping orders. The shipping fee covers the prepaid, pre-addressed shipping label and is paid by the buyer. All orders made inside the Poshmark are shipped using United States Postal service 1-3 day Priority Mail. But due to some unforeseen events, shipments may be delayed for up to 2 weeks.
How to Offer Free Shipping
The shipping cost of Poshmark can be a bit high depending on which item you are buying. For example, you are only purchasing a pair of earrings, but you'll need to pay the flat fee of $7.11. On the other hand, if you buy a dress with two denim jeans weighing less than 5lbs, then the shipping cost of $7.11 is already a great deal!
The good news is, you can actually give discounts on your shipping on Poshmark and even offer free shipping but can still get a good amount of profit with Poshmark's "Make offer to likers" feature. You can put multiple items on a bundle and offer it to your likers. This way, they are saving a lot more on shipping than buying 1-2 items- make sure that the combined weight of the items will not exceed 5lbs, or else the seller will pay for the excess.
You can offer reduced or free shipping on Poshmark through the "Bundles" and "Offers to Likers" features. When you offer bundles on Poshmark, you can reduce the shipping to $4.99 instead of $7.11. If you plan to shoulder the shipping cost for your customers, simply input $0.00 on the shipping cost, and they will deduct the shipping amount from your earnings. Make sure to consider the quality, condition, and market price of the item you are selling before you publish its retail price. An experienced seller who offers discounted or free shipping already adds the shipping cost to their final price. This way, shoppers believe that they get the best deal possible while you still make a good amount of money.
Shipping Items over 5 pounds
Poshmark's flat rate shipping fee of $7.45 only covers parcels under 5lbs. The seller will shoulder the additional weight of the package above 5lbs and generate a new upgraded shipping label.
Poshmark's parcel weight limit is up to 10 lbs. only. However, the seller still has the discretion whether they want to cancel the order or use online postage services to shipped out the overweight parcel. Otherwise, the buyer will need to pay additional fees for items above 10lbs when they pick up the overweight item.
Transactions made inside the Poshmark app give both the seller and buyer protection against scams and frauds. If the seller did not ship, disclose any flaws and damages, or send an item that did not match the listing description, the buyer can file a dispute and ask for a full refund. The same goes for the seller; in case the buyer wants to cancel due to a change of mind and the item is in final sale, you can send a dispute to Poshmark. The policies and systems are called Posh Protect.
How the Refund Policy Works
Poshmark refund policy is made to protect both the seller and the buyer transacting inside the app. It works like this; when a buyer purchases on Poshmark, they do not immediately release the payment to the seller. They'll give the buyer three days after delivery to check the items first, then report any misrepresented, incorrect or missing items with supporting documents and photos.
After Poshmark verified the incident and the seller failed to deliver the right item or send out items that did not match what was written on its listing description, Poshmark will send you a label to return the item to the seller and refund your payment. All returns must be shipped back to the seller within five days of approval before you can claim your refund.
Posh protect is made to provide protection both for the buyer and seller transaction in Poshmark. For buyers, in case you receive any of the following, please report it immediately to the Poshmark app or website to be eligible for refunds:
- Undisclosed damage, stains, or any signs of wear and tear.
- Missing or Incorrect item
- Item not similar with its listing description
- Counterfeit item
If the buyer did not make any claim within three days after receiving the item, Poshmark would automatically release the payment to the seller. Meaning, all sales are finals, and no returns/refunds will be provided.
The Posh Protect also provides protection for sellers against people buying an item and returning it due to unjust reasons such as a change of mind or the item does not fit. Please be reminded that all items are final sales, consider unless there are misinterpretations on the listing description or any undisclosed damages. All transactions made outside the Poshmark app are not covered by the Poshmark as well.
Any trades or transactions that are not made inside the Poshmark platform cant give you a guarantee or protection, and you need to bear all risks associated with offline transactions (including shipping and incorrect items).
How to Redeem Poshmark Earnings
There are two ways to get your Poshmark earnings after the item you sold has been delivered and received by your buyer. Your earnings are automatically transferred after three days of delivering the item if no claim has been made. You can spend your earnings within the app as Poshmark credit or withdraw your money as cash.
In the App
- Go to your Account Tab
- Click "My Balance."
- Click "Redeemable"
- Select the "Bank Deposit" button to receive a verification code
- Enter the verification code to proceed
- Enter your bank information, such as your account number and routing number (9 digits)
On the Web
- Click your profile picture at the top-right of the page.
- From the drop-down menu, click "Order Activity."
- Select "My Balance"
- Select "Redeem your balance here."
- Click "Bank Direct Deposit" to receive a notification code.
- Enter the verification code to proceed.
- Enter your bank information for direct deposit
- Direct deposit - Your earnings will be credited to your bank account within 2-3 business days (excluding weekends and holidays) through direct deposit.
- Poshmark Credit - You can use your earnings and spend them on Poshmark
- Request a Check - In case you don't want to direct deposit or spend your earnings on Poshmark, simply select "Check Request" when redeeming your earnings. Your check will be delivered to your chosen addresses and may take up to two weeks to arrive via USPS First class mail.
- You can only redeem your earnings when they become available as a redeemable balance.
- Refrain from using a credit card/debit card unless it's a prepaid card that accepts ACH deposits.
- If you enter other people's information from a check (family member, friend, etc.), the funds will be deposited to the person who issued the check. Remember to double-check the account number before submitting to prevent errors.
- You can request up to 10 redemptions a day (24 hours)
How Power Seller Make Money
After breaking down and identifying the cost of putting your listing on Poshmark and other selling fees to boost your sales, have you ever wondered why others leave their full-time jobs to be full-time sellers on Poshmark? For some, this platform may be their side hustle, but with great strategies, you can actually get a decent amount of profit from Poshmark alone.
The simple trick on how these power sellers make money out of resale platforms such as Poshmark, eBay, Depop, and more is by uploading quality photos, sharing your closet on your social media accounts such as Instagram, Pinterest, and Twitter, using the right keywords on your title, descriptions box, and hashtags, and the use of marketing automation tool that makes everything fast, and efficient.
Not every retailer knows how important it is to use marketing automation tools to help you schedule and share your closet hassle-free, delist and re-list items, and monitor your business insights in real-time. You can do all these and more by using OneShop, an all-in-one app made to help marketplace sellers sell faster and effectively on different marketplaces such as Poshmark, Depop, Mercari, and more.
Now, you no longer have to worry about making drafts, delisting and re-listing, and constantly sharing your closet from time to time. OneShop acts as your own sales marketing expert that helps you turn your views into sales, connect you with more potential buyers, and assist you in optimizing your listings to stay on top of the search rankings.
OneShop knows how the algorithm works and provides features to help you stay on top against your top competitors. The good news is, you can try it free for 7-days with no credit card required! Simply sign-up to get full access to all our features and see the difference it makes on your listings.