The following is our honest Poshmark review. Debt Free Dawn has not been compensated for our review.
Updated: October 11, 2016
- Huge marketplace (recently including men and kids!)
- Listing, selling, and shipping are extremely simple
- Sharing feature and social community allow sellers to invest more time to have their items seen by more people
- Flat 20% commission (or $2.95, whichever is higher) is among the highest you’ll find
- Only offers $5.95 priority shipping through USPS on all orders (plus add-ons for heavier items)
- Between shipping, buyers completing transactions, and payment withdrawal time, it can take over a week to receive payment
Poshmark Review: Summary
I love Poshmark. Honestly, it’s my favorite resale site except for that one big blemish: the commission. At 20% or $2.95 (whichever’s higher) plus mandatory $5.95 shipping, the least you’ll give up out of the buyer’s payment is $8.90. This means you need to use Poshmark judiciously: for bags, shoes, and jeans. Do your research and see what items are selling for on Poshmark, Mercari, eBay, Tradesy, or another site and calculate where you think you’ll make the most money.
In terms of sheer quality, though, it’s hard to beat the community Poshmark is fostering. Their sharing functionality is unique within the resale community, and it means you can work harder (sharing more things) to make more money.
Marketplace & Potential Buyers
Poshmark specializes in women’s clothing. The site’s first published sales report lists the following as the top 5 most popular brands:
- Louis Vuitton
- Michael Kors
- Tori Burch
From that same article, “handbags, shoes, jewelry and dresses are the most popular items,” and “the five fastest selling brands from listing to sale are: Louis Vuitton, Lululemon, Brandy Melville, Frye, and Longchamp.”
According to an April 2015 article, Poshmark users share up to 1 million items per day and the site boasts over 700,000 sellers, and those numbers are certainly higher now. According to an April 2016 article, Poshmark has recently received a $25 million investment to grow the business and has attracted “1.5 million sellers since its launch.”
On Android over 5 million people have downloaded the app.
7/22/16 Poshmark Review Update: Poshmark has expanded their marketplace to include men’s and kid’s clothing!
I’ve often heard Poshmark referred to as the Instagram of the online resale business. The site’s homepage is a feed of the most recently listed or shared items, and you can use the website to shop and edit your profile. What you can’t do on the website is sell items, which needs to be done on their mobile app.
I find their website is most useful when sharing items. Unlike most marketplaces out there, you can actually improve your odds of having your items viewed, shared, liked, and sold by spending more time engaging other members in the community. Poshmark is a social community. Sharing someone else’s items makes it more likely your items will be shared, and that pushes them to the top of the homepage feed. It’s much easier (in my opinion) to sit at the computer and share items for 10 minutes, 30 minutes, or even longer. I make sure to carve time out frequently to do this.
If you want to sell items, you have to do it on the app. The first step is uploading a cover shot, and the image has to be a square. A great feature is the ability to put a filter on the covershot for an added bit of style, though it does take more time to process than, say, the same feature on your smartphone.
The downside is you’re only allowed to upload up to 4 images, and the process to upload them one by one is tedious. Other apps and selling interfaces allow you to select or load multiple images at once, which saves some time. Poshmark doesn’t. If you want to go back and alter the order of the images, you need to manually delete and re-upload them, which is more tedious than the drag-and-drop features of other marketplaces.
You’re allowed up to 50 characters in the title, which rates better than other marketplaces but isn’t the best, and their category, size, and color options are fairly comprehensive.
The app allows you to customize the notifications you receive when people follow you, when people like, share, or comment on your items, when you receive offers, and when you’re invited to Posh Parties.
With purchases, the buyer has to accept the item and rate the seller to complete the transaction. Poshmark only publishes positive comments or ratings for the buying community to see, and they’re posted on each seller’s “About” page under the “Love Notes” section. As a seller it’s nice when you mess up or a buyer wrongly rates you poorly (which can happen) and your future buyers can’t see it. As a buyer it would be helpful to see all of the feedback about the person from whom you might be buying a Louis Vuitton.
Overall the app functions as expected with good speed and an intuitive interface.
Shipping on Poshmark is $5.95 for USPS priority shipping of up to 5 pounds per order, and you can only ship within the United States and U.S. territories.
For items over 5 pounds, Poshmark offers label upgrades on top of the initial $5.95, all of which are charged at the seller’s expense (so factor them into your listing price). The label upgrades are as follows:
- 6 pounds: $3.99
- 7 pounds: $7.98
- 8 pounds: $11.97
- 9 pounds: $15.96
- 10 pounds: $19.95
The above shipping options are all Poshmark offers, and it makes selling low-cost items very difficult.
Poshmark will notify you via both email and the app, and you can log into the app to create and print the shipping label. You’re allowed up to 7 days to ship an item. You can track the item through the app.
Commission & Fees
Poshmark takes a flat 20% commission on every order or $2.95, whichever is higher. It’s among the highest commissions you’ll encounter. If you buy clothing at thrift stores or wholesale for the purpose of reselling online, the high commission really eats into your profit margin. For example, if you buy a $5.00 shirt that you want to resell for $12.00 (a 140% markup), Poshmark will take $2.95 (which is actually 24.6% commission because 20% would only have been $2.40) and leave you with $9.05 revenue. Factoring in the flat $5.95 shipping, the buyer is paying $17.95 for the item, 49.6% of which is going to shipping and site commission.
Because of shipping and site fees, it’s harder to turn a profit selling t-shirts, yoga pants and leggings, or other run-of-the-mill items on Poshmark. This doesn’t mean you shouldn’t list those items on Poshmark, but you may be better off listing those items on eBay, Mercari, or some other platform with lower fees and some degree of shipping customization.
Poshmark offers a commission-free Poshmark Concierge service for authentication of items that sell for $500 or more, and it only takes 1-2 day. Better yet, they’ll ship the item for no additional charge to the buyer. It’s a great verification tool and reinforces Poshmark as one of the better marketplaces for higher-cost, higher-end items.
Buyer Disputes & Returns
When a buyer receives an item, they have up to 3 days either to accept the item and complete the transaction or to initiate a case review. If the buyer initiates a review, Poshmark will make a determination and have final say as to whether the product can be returned to the seller, but this generally takes around 2 days. According to Poshmark’s FAQ all sales are final, however, “a buyer may open a case with us if they don’t receive their item or the item they receive is not as described within the listing.” If Poshmark approves a return, they will cover the cost to the buyer.
Poshmark will take their commission out at the time of purchase, and the money will show up “Pending” in your account. The money is released to you once the item has been delivered to the buyer and the buyer accepts the item on the Poshmark app. The buyer is allowed up to 3 days to complete this process, but if they never complete the process, Poshmark will release your money on the 4th day. Withdrawal requests are processed by one of 3 methods:
- Transfer to bank account
With PayPal there’s an additional 2.9% + $0.30 taken out on the amount being transferred.