Poshmark New Fee Structure: Impact and Recommendations for Sellers

Poshmark has recently introduced significant changes to its fee structure, which will have a substantial impact on sellers' businesses. This article breaks down the key changes and offers recommendations to help sellers adapt and thrive under the new system.

Key Changes

1. New Fee Structure:
   • Flat fee on all sales:
     • $1 for sales under $15
     • $2 for sales between $15 and $50
     • $3 for sales $50 and above
   • 5.99% commission on the total order (including shipping and taxes)
2. Posh Pass:
   • Exclusive to Poshmark Ambassadors
   • Reduces shipping fee to $5.95 (paid by Poshmark)
   • Available through December 21, 2024

You can read more about the new fee structure here: New Poshmark Fee Structure: What it Means For You

Impact on Sellers

1. Higher-Priced Items Benefit: The new structure generally favors sellers of higher-priced items, as the percentage of fees decreases as the sale price increases.
2. Potential Squeeze on Lower-Priced Items: Sellers of lower-priced items may see a slight increase in fees, which could affect profit margins.
3. Shipping Advantage for Ambassadors: Poshmark Ambassadors with Posh Pass can offer more competitive shipping rates, potentially attracting more buyers.

Recommendations for Sellers

1. Optimize for Higher-Priced Sales:
   • Focus on selling higher-priced items to take advantage of lower relative fees.
   • Consider bundling products to increase the sale price per transaction.
2. Adjust Pricing Strategies:
   • Reassess your item prices to account for the new fee structure while remaining competitive.
   • Consider slight price decreases to offset the commission on shipping.
3. Leverage Posh Pass (for Ambassadors):
   • Highlight the $5.95 shipping offer in your listings to attract budget-conscious buyers.
   • Create special promotions or bundles that take advantage of the reduced shipping fee.
4. Incorporate Shipping into Item Price:
   • Offer "free shipping" by including shipping costs in the item price to attract more buyers.
5. Monitor and Review Performance:
   • Keep track of all fees to understand their impact on your profitability.
   • Use this information to make informed decisions about pricing and inventory.
6. Enhance Customer Communication:
   • Be transparent about any changes in pricing or shipping.
   • Provide excellent customer service to encourage repeat business and positive reviews.
7. Work Towards Ambassador Status:
   • If you're not yet an Ambassador, consider working towards this status to benefit from Posh Pass.

By implementing these strategies and staying flexible in your approach, you can adapt to Poshmark's new fee structure and continue to grow your business on the platform.

As a reminder, Reeva sellers do not need to worry about calculating or managing the new fee structure for their sales. Reeva takes care of this automatically when a sale is made so sellers don't worry about the complexity of fee calculations.

If you are looking to streamline your sales process and not worry about fee calculations when you make sales, check out Reeva.

Sources:

Understanding Poshmark Fees: A Complete Breakdown for Sellers

Posh Pass: Our New Discounted Shipping Program