How do we define a successful business venture? Fame, growth, and sales? Yes, and many more! It is not a secret that many factors need to play a part in reaching your goals, leading to success. And to do that, your part as an online seller is to know your target market and continuously seek different strategies to make sales and grow your business. By doing so, it opens a window of unlimited opportunities.
We all know that online selling has been skyrocketing at present, and more and more people are selling on different platforms, may it be a side hustle or a full-time job. Not only can you sell new items but also used items as thrifting has become an online trend. Many sellers are making money out of their collections. They sell clothes, accessories, and luxury items like bags and shoes.
It is undeniable that many buyers are leaning toward online shopping as it offers a diversity of items that often comes at competitive retail price. Furthermore, buying in the comforts of your home is also a plus as it does not require people to go out and spend their valuable time in traffic or falling in line.
Every online marketplace like Poshmark, Mercari, Amazon, eBay, and more, is built uniquely. But what they all have in common is that they all have tools and features for retailers to help them increase their sales and deal with their potential buyers. On Poshmark, they offer different tools and features to help you grow your sales. One of these is the Make an Offer feature that is an influential factor that most sellers take advantage of.
What is Make an Offer?
Make an Offer lets buyers and Poshmark sellers negotiate privately on Poshmark about the price of a listing. While sellers can initiate an offer through Bundles or Offers to Likers where a shipping fee discount is required, Poshmark buyers can also start a negotiation. The Make an Offer feature is a great way to attract Poshmark users and potential buyers as it offers them the freedom to propose a lower price for your listing that they are eyeing.
Through this, a fair and streamlined negotiation takes place, giving both parties a fair chance to discuss their offers. With Make an Offer, offers are binding, which means they cannot be canceled and cannot be counted as an accidental purchase. By using the Make an Offer feature, all sales are guaranteed once the offer is accepted in a fast and easy way which can take just a few clicks.
However, because this feature gives old and new Poshers a chance to offer you the price they want for the item in your Poshmark closet, not all buyers' approaches are pleasant and agreeable. You will encounter people who will try to get your items at the lowest price possible or lowball offers, which you may find offensive. But! Don't worry, as there are some approaches to appropriately respond to these low ballers.
How It Works For Sellers Like You
Offers are binding, meaning buyers are committed once they make an offer as they need to provide payment details and their address. This assures you that Poshmark will immediately process the payments once you accept the offer from a buyer.
When buyers click the Make an Offer button instead of the Buy now button, you will receive an email, a push notification, and a notification in your Poshmark "News" tab.
Make an Offer is a private negotiation between you and a specific potential buyer. You don't need to worry about the public listing price as it will remain firm until the item is sold.
Receiving more than one buyer making an offer for an item at the same time should not be a problem. All remaining offers will be canceled once you accept an offer.
All offers that are not responded to expire automatically in 24 hours. So, if you choose not to respond to an offer, you don't have to take action.
However, there are two kinds of responses that you can make when you receive an offer:
- Accept - By accepting the offer, the buyer's payment will be processed right away, and you will receive a shipping label from Poshmark.
- Decline or Counteroffer: When you counter an offer, you will have to indicate the asking price you are willing to sell your listing. Poshmark will then immediately notify the buyer so they can respond.
What To Do During Negotiation
Typically, you feel a strong psychological pull whenever a potential buyer makes an offer to your listing. This can be an exciting time as this ultimately means that someone is interested in buying your item. However, not all offers are the same.
It is natural for buyers to want to get the best deals there are. This is why, when given a chance, some may offer a very low ball price, even lower than a bargain price, but this doesn't mean you have to accept right away. One crucial factor that you should avoid is the seller's remorse or the feeling of regret after accepting a low price for an item that you know does not deserve to be sold at a very low price. Remember that you don't have to accept any offer if you feel like the price offered is not right.
Here are some tips on how you can negotiate on Poshmark:
- Be fast in countering or accepting offers as they only last 24 hours. This will not only give you the chance to connect to the buyer expressing interest in your item, but it also gives you an easier way to make a sale. Remember that each offer only lasts for 24 hours, and if you did not do anything about it, it would be canceled automatically.
- Expect your buyers to haggle. It's common for buyers to negotiate as most are always on the lookout to steal a good deal. Know that this is okay, and as a seller, you shouldn't take this personally and be offended. If you are open to give some discount on the price of an item, you can negotiate until you both reach an agreement.
- Offer a discount but still within a healthy profit margin. This will give your potential buyer the satisfaction of getting the item at a lower price. Most buyers feel triumphant when they get an item at their desired or discounted price. Not only does this will make your buyers happy, but it will also help you facilitate a sale.
- Set your upper bound. Have a price that is a little lower than your sale price. This can act as your second-best option in the event that a potential buyer tries to offer you a lower price than what you have listed. Think of this as the start of your wiggle room. This will give you the chance to negotiate some more if the buyer counteroffers with another price.
- Set your lower bound and be firm about it. This will serve as your floor price and guide, but this should not be your bottom line. You have to be firm about this if you still want to earn a little profit. However, be sure to factor in all the commissions and fees Poshmark takes after your sales. Your decision to accept an offer near your lower bound can depend on your personal and financial needs.
- Counteroffer with a price closer to the buyer's offer. Send counteroffers that are a bit higher than their offer without jeopardizing your lower bound. Make sure that any counteroffer that you indicate is still profitable to you. Sending a counteroffer will also let you gauge your buyer's interest in your item.
- Getting low ball offers is always a possibility. But it is essential to remain calm and not let your emotions cloud your judgment. It is also important to avoid sending any offensive words towards your potential buyer. Always practice professionalism when dealing with unfair offers. Remember, if you do not like an offer, you can do nothing as it will eventually expire after 24 hours, or you can always counteroffer and let them know that you are firm with your listed price or offer.
- Communicate well with your buyer. You must educate your potential buyer as most of them are unaware of how platforms like Poshmark work. You can sympathize with the buyer as they are also paying tax and shipping fees, but you can also politely remind them about the little commission you will get after all Poshmark fees.
What To Do When Negotiations Aren't Successful
As with any business, not all transactions are successful, and there will come a time when you and the buyer will not arrive at an agreed price. Things like this are inevitable due to the different demands and personalities of your customers. We understand that this can be a frustrating moment that can make you regret and you might find yourself wishing that you just accepted the buyer's offer instead of waiting for another buyer to come along.
But remember that you don't have to accept any offer if it doesn't feel right, and you don't need to sacrifice your profits for the sake of making a sale. Always remember that there is someone out there who is the right buyer for your item, and you do not need to set a lower price beyond what is profitable and accept unreasonable lowball offers.
Do not lose hope, as there are strategies that you can do to boost your sales and attract more Poshers to your closet. One of these strategies is relisting your item if your offers are going nowhere. This way, your listing can get a fresh start, and new likers may offer you higher prices than previous low offers.
If you have a large closet, using a Poshmark bot can benefit you, saving you time and effort in managing your closet. OneShop can help you relist, send offers, share, follow, cross-list across many platforms, and more! All these without you having to spend long periods in front of your device.
OneShop offers a no-risk, seven-day free trial with a responsive support team ready to answer all your questions and help you with your closet's needs. If you are ready to experience an intelligent software built to help you grow your business, all you have to do is sign-up here.