Poshmark drops seller fees to 5.99%, tests new seller program

Poshmark, an American second-hand clothing platform, recently announced that it would reduce seller fees, replacing the original 20% commission with a new price-based structure. This new policy will be automatically implemented for US sellers from October 3, and is planned to be launched in Canada in the future, but it will not apply to wholesalers.

Under the new fee schedule, sellers will be charged 5.99% of the total order amount. In addition, additional fees are set for orders in different price ranges: $1 for orders below $15; $2 for orders between $15 and $50; and only $3 for orders of $50 and above. This change means that sellers can make more profit from each transaction, whether the product is sold for $3 or $3,000.

Poshmark is also testing a new seller program called "Posh Pass." The program requires sellers to complete a minimum sales volume, ship quickly, and actively participate in social platform interactions. Eligible US sellers can use Posh Pass for free before December 31 and enjoy a discounted shipping fee of $5.95, which will be fully borne by Poshmark. Although Poshmark did not disclose whether Posh Pass will be charged starting January 1 next year, it said it will ensure that the program meets user needs based on feedback in the next few months.

In recent years, seller fees and related policies have been a source of distress for sellers. Earlier this year, Mercari cut seller fees across the board, while Amazon has made several adjustments to seller fees over the past year, leading to a general increase in fees. Two years ago, Etsy sellers went on strike over rising transaction fees, and some sellers set up their own independent sites or platforms.

According to a report by Earnest Analytics, Poshmark is considered the leading e-commerce platform in the second-hand clothing market, followed by The RealReal. It is worth mentioning that South Korean Internet giant Naver acquired Poshmark for US$1.2 billion in early 2023.

Author✎ Summer/
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