Poshmark Reverts to Original Fee Structure: What This Means for Sellers (And My Thoughts)

October 25, 2024

Clara Albornoz

Estimated reading time: 4 minutes

In a surprising yet welcome turn of events, Poshmark has decided to revert to its original fee structure, effective October 24, 2024. This comes only a few weeks after the company introduced a fee change that aimed to create a better balance between buyers and sellers. However, the outcome wasn’t quite what they—or the community—expected.

In a recent announcement, Poshmark’s CEO addressed the situation, explaining that the fee change didn’t go as planned. While it was designed to help sellers grow and earn more, it ended up doing the opposite. Buyers shifted their spending toward covering fees rather than making purchases, leaving sellers with less cash in hand despite the fee reduction. This understandably caused frustration within the seller community.

Here’s what the CEO shared in their official post:

“We’ve spoken with many of you and listened closely to your feedback. 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.”

It’s clear that Poshmark’s leadership heard the community’s concerns loud and clear. The fee structure change simply didn’t work as intended, and they’ve decided to return to the familiar and more straightforward original structure.

Here’s a breakdown of what’s changing:

Reverting to the Original Seller Fee Structure: Poshmark is returning to the 20% seller fee for sales over $15 and $2.95 for sales $15 and under. This is great news for sellers, as it simplifies the process and gives us more control over how much we’ll earn from each sale—no more unexpected surprises.
Removal of the Buyer Protection Fee: Buyers will continue to receive trusted protection through Posh Protect, but they won’t have to pay extra at checkout. This could encourage buyers to spend more on products and less on fees, benefiting sellers by increasing potential sales.
Ending Posh Pass Beta: This beta program was introduced to boost purchases with the new buyer fee structure, but with the return to the original fees, it’s being rolled back. While it may not have had a chance to fully take off, it’s good to know that Poshmark will continue to explore programs that benefit the entire community.
Offering a Rebate: Sellers who created or edited listings during the fee change period will receive a rebate for the difference in fees on items sold through Buy Now between October 24 and October 27, 2024. This gives us some time to adjust pricing strategies and make sure we’re ready for the shift back to the original fee structure.

My personal thoughts

If you’ve been following me, you might remember that I went live on YouTube right after the fee change was announced. I was pretty vocal about my concerns. While I understood the rationale behind the change—trying to balance the fee structure to help both sellers and buyers—it was clear from the beginning that this might not play out as expected. During that live, I reassured the community that Poshmark has a history of listening to feedback and making things right, especially when changes don’t benefit the resellers who rely on the platform. And here we are, seeing that exact process in action.

Poshmark’s decision to return to the original fee structure shows their dedication to the community and willingness to listen. This platform thrives because of us—the sellers—and it’s reassuring to know that when something doesn’t work, they’ll make adjustments to keep the marketplace fair and beneficial for all.

As a reseller, this change comes just in time for the busy fall season, which is perfect because trends like barn jackets are heating up (hello, fall fashion!). If you’ve got barn jackets in your inventory or can source them quickly, now’s the time to list them. With this return to a familiar fee structure and trending items like these, it’s the perfect moment to capitalize on what buyers are searching for.

I’m happy to see Poshmark take this step, and I hope it restores confidence for sellers like us. We’re all in this together, and when platforms listen to their users, we can continue to grow and thrive.

What are your thoughts on the fee rollback? Are you adjusting your listings or pricing strategies because of it?