Poshmark this week lowered seller fees, replacing its 20% take in the U.S. with a new structure based on price. The new policy does not apply to wholesalers, per a company blog post.
Sellers will now be charged 5.99% of the order total, plus $1 for orders under $15; $2 for orders between $15 and $50; and $3 for orders $50 and over, per a company blog post. The new system automatically began for sellers in the U.S. on Thursday and will launch in Canada in the future, according to an email to sellers from Poshmark founder and CEO Manish Chandra.
“When this new fee structure goes into effect [Thursday], you will immediately start earning a lot more from each sale, no matter if you are selling an item for three or three thousand dollars,” Chandra said.
The peer-to-peer marketplace is also testing a “Posh Pass” program available to Posh Ambassadors, who make a minimum number of sales, ship quickly and are highly engaged on the social-oriented platform. Under Posh Pass, free for qualified U.S. sellers now through Dec. 31, sellers can offer discounted shipping of $5.95, fully covered by Poshmark. A company spokesperson didn’t answer questions about whether there would be any monthly or annual fees for Posh Pass as of Jan. 1, but said the company will “collect and evaluate feedback over the coming months to ensure the program continues to best serve the needs of our vibrant community.”
Fees and related policies have been a source of frustration for marketplace sellers. Peer-to-peer resale site Mercari earlier this year cut seller fees entirely as part of what it called “an all-new business model.” At Amazon, various changes to seller fees in the past year or so — including referral fees and fulfillment charges — have mostly resulted in increases. Two years ago Etsy sellers went on strike over transaction fee increases, with some going on to form their own competing marketplace last year.
Poshmark is the leading digital platform in fashion resale, followed by The RealReal, according to a report last year from Earnest Analytics. South Korean internet giant Naver acquired Poshmark in early 2023 for $1.2 billion.
