Selling on Poshmark is similar to selling on other online platforms like eBay and Mercari, except for these 5 things:
1) Poshmark seller fees are higher than the other platforms. If you are wondering how much Poshmark takes, they take 20% of every sale - unless your item is priced under $15, then they only take $2.95. This Poshmark commission, although high, does not seem to be a deterrent to the sellers who have stated multiple times on the Poshmark Reddit thread that make more sales on Poshmark than the other platforms.
2) Poshmark shipping costs are largely controlled by Poshmark. Generally, the buyer pays a flat shipping rate of $6.79 as part of their order. This shipping fee accommodates items that fit into all USPS Priority Mail packaging, as long as it weighs less than 5 pounds. As a seller, you have the option to offer discounted shipping to your buyer – the buyer pays $4.99 and you will pay $1.80. The $1.80 is automatically deducted from your profits for the sale by Poshmark. You also have the option to offer free shipping to your buyer – the buyer pays $0 and you will pay $6.79. Again, the $6.79 is automatically deducted from your profits for the sale by Poshmark.
• A quick note about Poshmark shipping time: like other online selling platforms the speed is determined by the seller and USPS combined, the difference with Poshmark is that once a seller gets the shipping label, they have 7 days to ship the item before the buyer can cancel the sale. Poshmark can also cancel the sale if the item has not shipped after 21 days, even if the buyer does not cancel the order. (For more about Poshmark shipping, go here: “How to Ship on Poshmark”)
3) Poshmark reviews are different from other platforms in that the buyer is giving one rating choice of 1-5 stars and one comment, which apply to the seller, not the product. Reviews are private, only you as the seller can see all of your ratings, buyers cannot (except for the ratings they leave). Although ratings are private, they can positively or negatively affect how often your products are seen and by who. For example, a series of returns or bad reviews will result in the Poshmark algorithm choking your listings from showing up in the feeds or at the top of search results, so your items for sale are not seen as often or by as many people - even if you are making the same marketing efforts as you were before the returns/bad reviews. (For more about marketing efforts, go here: “Tips for Selling on Poshmark”)
4) Poshmark returns are unique in that the decision rests entirely in a third party’s hands; Poshmark headquarters. Because of this, returns can be frustrating for both buyer and seller. The best way to protect yourself from returns is to include as much information and as many pictures as you can about the item for sale within the limited 500 characters and 8 photos that Poshmark allows in a listing. When a buyer files an IND (Item Not as Described), try to stick to the facts of the complaint and the evidence you can provide to support your position. Think about the transaction from the perspective of someone who has never seen the item or met either buyer or seller before. The more precise information and proof you can provide, the better for you. (For more about returns, go here: "How to Handle Poshmark Returns”)
5) Poshmark authentication is a non-optional service Poshmark provides for $39, in which any time a listing with an item worth more than $500 is purchased, the seller receives a shipping label to send the item to Poshmark headquarters where they have a team of luxury experts who carefully inspect the item's authenticity by checking logos, tags, materials, hardware, quality, and more. Once they confirm the authenticity if the item, Poshmark repackages it and ships it to the buyer. If the item cannot be verified as authentic, the buyer is refunded, and the item is sent back to the seller. Posh Authentication is currently free until after 7/31/2019, then the seller will be charged for the service as well as extra shipping costs.
Other Good Information
How to package on Poshmark is up to the seller (as long as the item, with packaging, can fit in a USPS Priority Mailing box). Some sellers toss the item in a box or envelope with little thought about the buyer perception or experience and some sellers buy themed boxes, tape and bubble wrap plus gift wrap their items, ribbon included, and add a thank you note and free gift. There does not seem to be a consensus (at least in the Poshmark Reddit community) that one method has been proven more successful than another, so choose what works best for you. (For more information go to: "How to Make Money on Poshmark")
Poshmark sales tax collection can be confusing, but every online platform will need to collect sales tax on behalf of their sellers in certain states as of 7/1/2019. The sales taxes that are collected are paid to the respective state. Keep in mind that you should find out if you need a business license where you live in order to sell online, even on Poshmark. It could get messy if Poshmark reports sales on your behalf and your State requires a business license for that activity and you do not have one!