Poshmark just announced major changes to its fee policy that are going to benefit both new and existing sellers.
The latest selling fee update by Poshmark aims to boost seller profits and help them make more money from their sales.
Here’s everything you need to know about the latest Poshmark fees update and how it will benefit you as a seller.
Poshmark Fees Update (October 2024)
Poshmark on October 3, 2024, announced that It’s lowering the selling fees with immediate effect.
Earlier, Poshmark used to charge a 20% selling fee in the US, but it’s now replaced by a 1-2-3 fee structure, which is actually in favor of the platform sellers.
Moreover, Poshmark has made changes to the shipping fee as well. They’ve now introduced Posh Pass which is a shipping discount program to help sellers make more profits from their sales.
Not only that, Poshmark also introduced a buyer protection fee that will be applied to all orders placed on Poshmark.
Also Read: Depop Removes Selling Fees in the US
What’s the New 1-2-3 Fee Structure?
Poshmark has replaced their previous 20% selling fee with a new tiered structure that has two components:
- A fixed fee based on the order price.
- A percentage fee of 5.99% on the total order value.
Fixed Fee
| Order Price | Fixed Fee |
|---|---|
| Under $15 | $1 |
| $15 to under $50 | $2 |
| $50 and over | $3 |
The fixed fee is straightforward and follows three tiers. For items priced under $15, sellers pay just $1. If the item price falls between $15 and $50, the fee increases to $2. For any items $50 and above, sellers pay a $3 fixed fee. This tiered system will ensure that lower-priced items aren’t disproportionately affected by fees.
Percentage Fee
In addition to the fixed fee, Poshmark will now charge a 5.99% fee on the total order value.
It’s important to note that this fee applies not just to the item price, but to the entire order total, which includes the order price, shipping cost, and any applicable taxes.
Also, there will be no payment processing fees or any other fees associated with selling on Poshmark.
What’s Posh Pass Shipping Discount Program?
Posh Pass Beta is the new shipping discount program by Poshmark that will significantly reduce the shipping fee for Posh sellers. Moreover, it will also help in attracting more buyers to the marketplace.
With Posh Pass Beta, all sellers will get discounted shipping of $5.95 which will be completely covered by Poshmark.
This strategic move aims to make purchases more attractive to buyers while ensuring sellers don’t incur additional expenses.
Right now, the Posh Pass Beta is only available to Posh Ambassadors and is free for them until December 31, 2024. That means Poshmark will pay the difference in shipping costs while sellers or buyers won’t have to pay it.
If you are a Posh Ambassador, you will automatically get enrolled in the Posh Pass Beta program and can benefit from it till December 31st, 2024.
What’s the Buyer Protection Fee?
The latest Poshmark fees update will not only impact sellers but also buyers as well. Poshmark also announced a buyer protection fee in its latest fees update that will be applied to all orders placed on Poshmark.
Poshmark will be charging the buyer protection fee on every order to ensure a safe shopping experience for its buyers.
The buyer protection fee has two parts: first, a simple fixed amount based on what you’re buying.
If your item costs less than $15, you pay $1. For items between $15 and $50, the fee is $2. Anything $50 or more has a $3 fee.
Second, there’s an additional 5.99% charged on the entire order, including the item price, shipping, and any taxes.
What do buyers get for this fee?
Well, every order will now include Posh Protect, which helps ensure the buyer gets what he paid for. If he is buying expensive items, he will also get Posh Authenticate, which verifies that high-value items are genuine.
In addition, he will get access to customer support whenever he needs it, and his fee will help Poshmark keep improving its service for everyone.
The goal of this Poshmark fees update is to make shopping on Poshmark secure and reliable, with the fee adjusted based on how much you’re spending. It’s like having insurance for your purchase, plus extra services to help if you need them.
