How to Price Your Poshmark Listings in 2023

How to Price Your Poshmark Listings

If you’re an active Poshmark seller looking to maximize your profits or a starter eager to make it big in online reselling, pricing your listings right is crucial. In a thriving online marketplace like Poshmark with an ever-growing user base, setting the right price means the difference between a quick sale and stagnant inventory. So in this comprehensive guide, we’ll talk about how to price your Poshmark listings. Moreover, we will discuss proven strategies and insider tips to help you as a Poshmark seller understand the art of pricing on Poshmark. So let’s start:

How to Price Your Poshmark Listings?

1- Research Market Pricing:

When pricing your Poshmark listings, conducting research on market pricing is quite crucial. One important aspect to consider is the retail price of the item you are selling, particularly if it is available for purchase online or in physical stores. Considering the original price can provide you with a reference point and help you gauge the perceived value of your item.

However, since you are selling a gently-used item, it is generally advisable not to price it too close to its original retail price. Buyers on platforms like Poshmark often expect a lower price for pre-owned items.

Pricing Compare Poshmark vs eBay

To arrive at a fair pricing range, you can also explore similar items listed on other online reselling marketplaces like eBay and Mercari. This allows you to assess how other resellers are pricing the same items, providing you with insights into the prevailing market rates. By comparing prices and considering the unique attributes of your item, you can strike a balance between attracting buyers and ensuring a fair return on your sale.

2- Evaluate Your Item’s Condition:

The condition of the item you are selling plays a significant role in determining the price of it, therefore, it’s important to carefully evaluate the condition of your item. If your item has stains, damages, or any sign of wear and tear then it can impact the pricing.

Evaluate Item Condition

To ensure transparency and avoid issues with buyers, it’s important to clearly mention any flaws or damages in the product description. By providing an honest and detailed description of the item’s condition, you can build trust with your buyers and better cater to their expectations.

Undisclosed flaws or damages in items can lead to buyer dissatisfaction and potential returns. Honesty is key in maintaining a positive reputation as a seller on Poshmark. Assess the severity of any imperfections and consider how they might affect the overall value and desirability of the item. Adjust your pricing accordingly to reflect the condition accurately.

3- Consider Brand or Item Demand:

The demand for a certain product or brand is also a factor to consider when setting a price for your Poshmark listing. As a seller, you should know that there can be brands or items that may have a higher demand on Poshmark, which eventually have an impact on their value and the price you can set.

Brand Value Poshmark

So when setting an item, always take into account the popularity of the brand or item among Poshmark buyers, as well as its current trendiness. Research the selling history of similar items on Poshmark to get an idea of their market value.

You can also look for comparable listings that have recently sold and note their final sale prices. This information will help you gauge the demand for the brand or item that you are selling and determine a competitive price.

4- Consider Poshmark Commission Fee:

Poshmark Comission

No matter what online marketing you are selling on, almost all of them charge a commission fee that sellers need to pay for either listing a product or making a sale. Being a seller on Poshmark, you are also required to pay a commission fee for each item you sell. The commission fee structure is quite simple. Here’s the breakdown of the selling commission fees on Poshmark:

  • For a sale that is under $15, there is a flat commission fee of $2.95
  • For a sale that is over $15, the commission fee is 20% of the sold item price

It’s important to know that the commission fee that Poshmark charges also includes the credit card processing fee, Posh Protection fee, and even sales tax. So when determining the price of your listing, you should factor in all this.

For items priced under $15, it’s advisable to consider the flat fee and set a price that covers the fee while remaining competitive. For higher-priced items, you need to calculate the 20% commission fee accordingly. By incorporating these fees into your pricing strategy, you can accurately price your Poshmark listings and maximize your profitability on the social commerce platform.

5- Understand Poshmark Shipping Fee Structure:

Poshmark shipping fee is one of the confusing things for sellers. That’s why it’s important to rightly understand how shipping works on Poshmark and how much shipping fee Poshmark charges.

As of 2023, Poshmark charges a flat rate of $7.45 for expedited shipping through USPS priority mail. This fee is all paid by the buyer and covers the shipping label and priority mailboxes for items weighing less than 5 pounds.

Poshmark Shipping Fee Structure

For shipping a package weighing over 5 pounds, there will be a label upgrade fee, which will be deducted from the seller’s earnings. Once the buyer pays for the item, Poshmark sends the shipping label to the seller that the seller needs to print and attach to the package.

It’s the choice of the seller to either drop it off at the nearest post office or get it picked up from his home without paying any extra charges.

One thing that Poshmark sellers can do to attract those buyers who are looking to purchase multiple items is to offer them a bundle discount or free shipping. This way they can encourage multiple purchases while providing added value to their buyers.

6- Pre-Calculate Your Profit Margin:

As a seller, always pre-calculate your profit margin so that you won’t incur losses. To calculate your profit margin start by determining your sourcing price, which includes the cost of acquiring the item.

Next, factor in the selling commission fee charged by Poshmark, as this will impact your overall profit. Then, consider the shipping fee, which varies depending on the weight and dimensions of the package.

Poshmark Profit Margin

When an item is in high demand and competition is fierce, you may choose to price it lower to attract more buyers and generate a higher volume of sales. Although your profit margin may be lower per item, the increased sales can compensate for it, resulting in overall profitability.

Similarly, if you are selling a rare item that is difficult to find elsewhere, you have the opportunity to price it a little higher and earn a higher profit margin. Buyers who are looking to buy exclusive or hard-to-find items are always willing to pay a premium that you can leverage to increase your profitability on each sale.

Remember, balancing your pricing strategy with market demand and the rarity of your items is key to setting the right prices for your Poshmark listings.

3 Pricing Tips to Attract Buyers on Poshmark

1- Lower Pricing Often Gets Counter Productive:

While lowering prices on Poshmark may seem like a surefire way to attract buyers, it can actually have negative consequences. When you consistently offer an item at an extremely low price, it can create a perception that the item is of low quality or not quite in demand.

Lower Pricing Often Gets Counter Productive

Buyers on Poshmark may become skeptical or assume that there’s something wrong with the item, leading them to pass it up for higher-priced alternatives. Moreover, an excessively low price can undercut the perceived value of the item, diminishing its appeal to potential buyers.

Find the right balance between competitive pricing and maintaining the perceived value of the item and instead of solely relying on lower pricing, focus on creating value. There are many ways to create value in your listing such as writing accurate item descriptions and capturing appealing product photos.

2- Don’t Sell An Item in Loss If It’s Not Selling:

If there is an item in your Poshmark closet that isn’t selling for a while then it may be tempting to lower the price drastically in the hope of getting sales. However, don’t sell that item at a loss out of desperation. Instead, consider utilizing alternative strategies to promote the item and increase its visibility to potential buyers.

Posh Sidekick’s listing promotion service is one great Poshmark promotion service that you can try to boost the visibility of your listings and increase their chances of being noticed by poshers. With the Promoted Listing Pack by Posh Sidekick, you can make your listings reach millions of poshers without compromising on the value of your item.

PoshSidekick Promoted Listing Pack

Remember, selling an item at a loss may lead to short-term gain on Poshmark, but it could impact your profitability in the long run. By using a promotional service like Posh Sidekick, you can effectively attract buyers without sacrificing your bottom line.

3- Bundle Pricing Discounts:

When it comes to attracting buyers on Poshmark, bundle pricing discounts can be an effective strategy. Offering discounts for purchasing multiple items together encourages shoppers to add more items to their carts, resulting in bigger sales. By bundling items, sellers can create a sense of value and provide an incentive for buyers to make a value for money purchase.

One way to create a bundle is to offer a percentage discount based on the number of items included in the bundle. For instance, you can offer a 10% discount for purchasing two items, a 15% discount for three items, and so on.

This tiered approach will encourage buyers to add more items to their bundle to maximize their savings. You can even highlight the bundle offer prominently in their product descriptions or even create separate listings specifically for bundled items to attract attention.

Bundle Pricing Discounts Poshmark

Another approach is to create themed bundles or curated sets. This can be especially effective for sellers who have a niche market or specialize in a specific category of items. By grouping related items together, such as a complete outfit or a collection of accessories, sellers can offer a convenient shopping experience for buyers.

Frequently Asked Questions (FAQs)

What should I do if my item isn’t selling at the initial price I set on Poshmark?

If your item isn’t selling, you may need to reassess the pricing. Consider lowering the price to attract more buyers. Analyze other Poshmark listings and be open to adjusting your pricing strategy based on feedback and demand.

Should I price items higher on Poshmark to leave room for negotiation?

It depends on your selling strategy. Pricing higher than your desired selling price does give you room for negotiation, but it may also discourage potential buyers who prefer not to negotiate. So consider your item’s desirability and the current market when deciding whether to leave room for negotiation or price competitively.

What to do as a seller if I can’t find similar listings on Poshmark to compare prices with?

If you’re unable to find listings on Poshmark to compare your listing with then try searching for similar items on other marketplaces like eBay or Depop. Moreover, you can consider reaching out to online communities, forums, or social media groups dedicated to Poshmark to gather insights.

Can I increase the price of my item if it’s in high demand on Poshmark?

If your item is in high demand on Poshmark, you may consider raising the price, especially if it’s a rare or sought-after item. However, be cautious not to overprice it to the point where it becomes unreasonably expensive.

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