Poshmark Fees Explained: How Much Does Poshmark Really Take?

If you're a reseller, one question constantly looms over your business strategy: how much do the platforms I sell on actually take? For years, Poshmark's fee structure was straightforward but often a point of contention for sellers looking to maximize their profits.

That's all about to change. Poshmark has announced a significant update to its fee policy, aiming to put more money back into the pockets of its sellers. This change is a game-changer for anyone selling on the platform, from casual closet cleaners to full-time resale entrepreneurs.

This guide breaks down everything you need to know about Poshmark's new fees. We'll cover exactly how much it costs to sell on Poshmark, what percentage the platform now takes, and how you can leverage these changes to grow your business. We'll also show you how pairing these lower fees with a powerful resale tool can dramatically scale your success.

Poshmark's New Fee Structure: A Major Shift for Sellers

The single biggest piece of news is that Poshmark is getting rid of its long-standing 20% fee for sellers in the United States. This is a massive shift aimed directly at making the platform more competitive and rewarding for its community.

This update is part of Poshmark's stated goal to offer lower selling fees. The change officially goes into effect starting October 3, 2024.

In place of the old model, Poshmark is introducing a new "1-2-3 low fee structure" for the US market. This new policy is designed to be more flexible and ultimately help sellers keep a larger portion of their earnings on every sale.

Best of all, sellers do not need to take any action. From October 3, 2024, all of your listings—both new and existing—will automatically transition to this new, more favorable fee structure.

How Much Does Poshmark Take? A Detailed Breakdown of the New Fee

So, with the 20% commission gone, how much does Poshmark take from a sale now? The new fee is calculated using a two-part formula that combines a small fixed fee with a lower variable percentage.

Understanding this breakdown is key to accurately calculating your potential earnings and pricing your items effectively.

The Two-Part Fee: Fixed + Variable

Starting October 3, 2024, the Poshmark seller fee consists of two components:

1. A Fixed Fee: This is a flat charge of either $1, $2, or $3. The specific amount is determined by the final order price of the item or bundle sold.
2. A Variable Fee: This is a charge of 5.99% of the order total.

This hybrid model replaces the single, high-percentage fee, offering a more nuanced approach that can be more beneficial, especially for higher-priced items.

What is the "Order Total"?

It's crucial to understand the difference between "order price" and "order total" in this new structure. The fixed fee is based on the order price, but the 5.99% variable fee is calculated on the order total.

The order total includes:

• The final price of the item(s) sold (the order price).
• The shipping cost paid by the buyer.
• Any applicable sales tax.

This means the 5.99% is applied to a larger number than just your item's price, a key detail to remember when forecasting your net earnings.

How the Poshmark Fee Works for Bundles

The new fee structure works the same way for bundled sales. The calculation is straightforward:

• The fixed fee ($1, $2, or $3) is determined by the total order price of all items in the bundle.
• The variable fee (5.99%) is calculated on the bundle's total order total, which includes the bundle price, shipping, and any taxes.

Estimating Your Earnings

To help you navigate these new fees, Poshmark provides an estimate of your potential earnings directly within the platform. You will see this estimate when you first create a listing and also when you are making or receiving an offer.

While this is a helpful guide, remember that the final earnings and fees are calculated and shown only after a sale is fully completed.

For sellers using wholesale, it's important to note that at this time, the new fee structure applies to all regular listings, but not currently to wholesale. For details on wholesale fees, you should reach out to Poshmark's support team.

What Percentage Does Poshmark Take Under the New Rules?

A common question for resellers is, "What percentage does Poshmark take?" The answer is no longer a simple number like 20%.

With the new structure, Poshmark is officially getting rid of its 20% fee in the US. The new seller fee includes a variable component of 5.99% of the order total, plus the small fixed fee ($1, $2, or $3).

Because of the fixed fee component, the *effective percentage* you pay will vary with every sale. On a low-priced item, the fixed fee will represent a higher percentage of the sale price. Conversely, on a high-priced item, the fixed fee becomes almost negligible, and your effective rate will be much closer to the base 5.99%.

The key takeaway is that for most items, and especially for items priced above a certain threshold, this new structure is designed to be significantly lower than the previous 20% fee, allowing you to keep more of your hard-earned money.

Understanding the Full Cost of Selling on Poshmark

When evaluating how much it costs to sell on Poshmark, it's important to look beyond just the primary seller fee. The platform includes several services within that fee, which represents significant value and savings compared to other platforms.

Poshmark continues to offer ZERO payment processing fees for sellers. On many other e-commerce sites or payment gateways, you would typically pay a separate fee of around 3% just for processing the customer's credit card transaction. This is included with Poshmark.

Furthermore, Poshmark charges no other fees for its suite of seller services. This means there are no listing fees, no monthly store subscription fees (for regular sellers), and no extra charges for the tools they provide.

Your total cost of selling on Poshmark is the single, transparent fee: $1, $2, or $3 based on the order price, plus 5.99% of the order total. That's it.

This comprehensive approach simplifies accounting and makes Poshmark an even more attractive platform, especially with the new lower fee structure that will be live for the US market on October 3, 2024.

Maximize Your Earnings and Minimize Your Effort with Reeva

With Poshmark's fees going down, the opportunity to increase your net profit has never been greater. The key to capitalizing on this is to increase your sales volume without increasing your workload. This is where we come in.

Our platform is an all-in-one tool designed specifically to help resale businesses simplify their operations, automate tedious tasks, and scale with ease. We help you run and grow your business so you can get back time to focus on what matters most: sourcing great inventory and making more sales.

Trusted by top resale businesses like Nuzzydeals, Vintage Vault WV, and TuffNY, our platform is built to accelerate your growth on Poshmark and beyond.

Sell Smarter and Faster, Not Harder

The most time-consuming part of reselling is often the listing process. We have fundamentally changed that. With our AI-powered tools, you can turn photos into complete listings almost instantly.

Simply upload your photos, and we will create optimized listings with compelling titles, detailed descriptions, and suggested prices. As FabFam, a reseller from Washington, puts it, "Reeva has cut my listing time by more than half. I can take photos, voice-to-text my details, and let Reeva handle the rest."

Even better, you can list everywhere with one click. Our platform allows you to publish your items to Poshmark, eBay, Mercari, and Depop simultaneously, maximizing your reach without multiplying your effort.

Ready to reclaim your time and supercharge your listing process? Our tools are designed to save you time and help you make more money. Start your free trial of Reeva today and see the difference.

Save Time with Powerful Automation

Consistency is crucial on Poshmark, but it's also demanding. Our automation features handle the repetitive tasks that drive visibility and sales, so you don't have to.

You can automatically share your Poshmark closet to keep your items at the top of search results, send personalized offers to interested buyers without lifting a finger, and automatically relist stale products to give them a fresh chance to sell.

One of our most critical features for multi-platform sellers is instant delisting. When an item sells on one marketplace, we automatically remove it from all others, preventing overselling and protecting your seller reputation. AlistairBP from Georgia says, "The feature I use 100% the most—and couldn't live without—is the AUTO-DELIST feature."

Grow Your Business with Professional Tools

As your business grows, so does the complexity. We provide the management tools you need to scale efficiently.

You can update and manage hundreds of listings in bulk, track sales and profits with powerful business analytics, and even give team members access with multi-user account options. We also offer full-service accounting tools that connect to your bank accounts, categorize transactions, and generate profit and loss reports to simplify tax time.

As TUFFNY from New York shared, "Since using Reeva, I've cut down my admin time by at least 30%, giving me more time to source new products and expand my business."

Stop guessing and start growing. See how our business analytics and management tools can transform your strategy. Explore Reeva's features and start your free trial now.

The Reeva Advantage: Real Success Stories

The results speak for themselves. Sellers who use our platform see tangible growth in their businesses.

• Vintage Vault WV saw a +372% increase in items sold in just three weeks and can now create 10x the number of listings per hour.
• Nuzzydeals experienced a 7x increase in sales and a 60% increase in listing speed.
• AlistairBP went from selling 3-5 items a week to 10-15 items per day, growing his selling amount by 4x.

This is the kind of growth that's possible when you combine your hard work with the right tools. With Poshmark's lower fees, the potential for profit is even higher.

Pro Tips to Thrive with Poshmark's New Fee Structure

Lower fees are a great start, but true success comes from combining them with smart selling strategies. Here are some pro tips, drawn from Poshmark's own advice, to help you thrive in this new era.

Master Your Listing Strategy

A great listing is the foundation of every sale. Poshmark data shows that brand new listings are twice as likely to sell compared to copied or relisted items. However, using the "Reposh" feature is also powerful, as Reposhed listings sell 30% faster than fresh ones.

To increase visibility, always use high-quality photos with a simple or white background. Optimize your titles and descriptions with relevant keywords, including style terms, trends, patterns, and materials that shoppers are searching for.

Don't forget to add up to three applicable Style Tags. This gives your listing a chance to be featured in Poshmark's own marketing and social media campaigns.

The Art of Pricing and Offers

Offers are the lifeblood of Poshmark, with a staggering 67% of all sales happening through an offer. Price your items competitively, but always leave some wiggle room to send out Offer to Likers or participate in Closet Clear Out events.

Don't be afraid of lowball offers. Poshmark's data reveals that 30% of all lowball offers (those 50% or more below the list price) result in a sale when the seller counters. Always respond to every offer.

Timing matters, too. Try to send offers to likers within an hour of them showing interest to capture them when they are most engaged.

Consistency is Key

Platform algorithms reward activity. In any given week, 94% of Poshmark sales go to sellers who have listed something new that week. Consistent listing is vital.

Sharing is equally important. Since shopper searches default to "Just Shared," sharing your listings bumps them to the top of your followers' feeds and in search results. Aim to share your closet at least three times a day.

This is where automation becomes a game-changer. Manually sharing a large closet multiple times a day is a monumental task. Instead of spending hours on your phone, our platform can handle the sharing for you, ensuring your listings get consistent visibility without the constant effort. See how our Poshmark automation can free up your day.

Your Poshmark Future: Lower Fees and Smarter Selling

The landscape of selling on Poshmark is undergoing a positive and significant transformation. The move away from a flat 20% commission to the new, lower fee structure ($1, $2, or $3 plus 5.99% of the order total) is a clear signal that Poshmark is investing in the success of its sellers in the US.

This change directly addresses how much it costs to sell on Poshmark, making it a more profitable venture and allowing you to keep more of your revenue from every single sale.

Now is the perfect time to scale your resale business. With lower fees reducing your overhead, your primary focus should be on increasing sales volume efficiently. This is precisely what Reeva was built for.

Our platform gives you the tools to list faster with AI, sell more by cross-listing to multiple marketplaces, and manage everything seamlessly with powerful automation and analytics. Don't just adapt to the change—capitalize on it.

Start your free 7-day trial of Reeva today and discover how we can help you build a more profitable and scalable resale business.