Poshmark is ‘actively working on’ a new fee structure after seller outcry
Update: In a blog post published Monday, Poshmark announced that it is reverting back to its old fee structure. In it, the company said that it spoke with many sellers and “listened closely to [their] feedback.”
After adjusting its fee structure and prompting an outcry from sellers, Poshmark says it’s revisiting the policy.
In the past couple days, some Poshmark users opened the app to find a banner that said, “We’re actively working on our new fee structure to better meet your needs. Stay tuned for more details.” Poshmark did not provide additional information, including what the changes might be or when they would be rolled out. When reached for comment, a Poshmark spokesperson told Modern Retail that the company did not have further details to share at this time.
The reaction on social media, especially Reddit, has been swift. “I can’t believe they thought they’d get away with this,” one user wrote on Reddit. “I am hoping they hear us and put it back to the way it was,” another wrote.
Still, some sellers aren’t sure they’ll like the changes, with Reddit user writing, “I doubt they will reverse the buyer fee, but man does this suck. I used to average like 12-15 sales a week. Now I’m under five.” Another wrote that Poshmark is acting “too late.” “I deleted my closet and feel pretty great about it,” they added on Reddit.
The update comes a little more than two weeks after Poshmark rolled out a new policy that slashes fees for sellers but also increases fees for buyers. Under the previous Poshmark system, sellers paid a 20% fee per item sold. Now, sellers and buyers must each pay a 5.99% fee per item sold. What’s more, buyers and sellers must each pay an additional $1, $2 or $3 depending on if the item sold is under $15, between $15 and $50 or more than $50.
Sellers told Modern Retail that the new fee structure places a burden on buyers and worry that shoppers will abandon their carts when seeing the full total at checkout. Since the changes went into effect, dozens of sellers have taken to Reddit complaining that their sales are down. Others are vowing to leave Poshmark entirely for platforms like eBay or Whatnot.
A Poshmark spokesperson previously told Modern Retail that the platform worked on the new structure for more than a year. “We implemented this change in direct response to ongoing seller feedback, the evolving e-commerce landscape and our commitment to accelerating growth for our community,” they said. “The predominant feedback we received was a strong desire for lower selling and shipping fees.”
Poshmark’s decision to lower seller fees follows similar moves by resale platforms Mercari, Depop and eBay U.K., all of whom scrapped their previous plans in a bid to stay competitive. Not all of the decisions were welcomed, however. In March, Mercari sellers spoke out against the company’s decision to eliminate seller fees, introduce buyer fees and allow returns for any reason. Two months later, Mercari reversed part of the new policy and said buyers could initiate returns within three days of delivery, and only in limited instances.
Sellers told Modern Retail they’re tired of the whiplash and want changes that actually benefit sellers. With asked about Poshmark’s fees earlier this month, a seller named Riley said, “I’m assuming they’re trying to come up with ways to increase revenue… [but] instead of doing things that could increase sales, like improving the search algorithm, they came out with this confusing fee structure.”