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UPDATE: Poshmark Walks Back Fee Structure Overhaul

Social commerce and resale company Poshmark has rolled out a new fee structure designed to help sellers maximize their earnings.
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[Update as of 10/22/24]: Less than a month after Poshmark unveiled a new fee structure to improve customer transparency and boost seller revenue, the company has decided to revert back to its old model. Poshmark Founder and CEO Manish Chandra wrote in an email statement that the decision was made based on feedback from its seller community.

“We made the recent fee change with the goal of helping you, our sellers, grow and earn more by balancing fees between sellers and shoppers,” wrote Chandra. “However, over the past few weeks we have seen that shoppers spent less on purchases as they shifted their spending from orders to fees, leaving our sellers with less cash in their pockets — despite the seller fee reduction. The outcome of the change did not meet our expectations and I sincerely apologize for the disruption and impact that this has had on you.”

Effective immediately, Poshmark is adopting its old seller fee structure, removing the Buyer Protection Fee and offering a rebate for the difference in seller fees on listings created or editing during the fee change prior and sold through Oct. 24, 2024. The goal is to give sellers “time to adapt your listings and pricing strategies.” The company also is ending Posh Pass Beta, which was designed to lower shipping fees for a few key Poshmark seller ambassadors.

Original story from Oct. 3, 2023 begins

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Social commerce and resale company Poshmark has rolled out a new fee structure designed to help sellers maximize their earnings. The initial 20% seller fee will be replaced with a 5.99% fee, along with an additional $1, $2 or $3 fixed fee, depending on the total order amount. The fixed fee pricing tiers for buyers and sellers include:

  • Orders under $15: $1 fee;
  • Orders between $15 and $50: $2 fee; and
  • Orders $50 and above: $3 fee.

The new fee structure, which aims to provide both shoppers and sellers with clear, upfront price transparency, also will cover Posh Protect, Posh Authenticate (when applicable), 24/7 customer support and continuous improvements to the platform. Poshmark has invested heavily in new programs and experiences to support its entire community; the company recently launched Posh Party Live, livestream events curated to specific fashion themes. And last year, the company unveiled Posh Lens, an AI-powered visual search solution designed to help shoppers find pre-loved goods faster.

A Poshmark representative noted that the “positive changes” to the fee structure will “empower sellers to earn more,” while also giving consumers access to the same secure and protected shopping experience.

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