Most of us are fairly cautious when purchasing clothing online; we carefully inspect pictures, carefully read the small print, and only use “legit” sites. Because of this, it might be challenging to believe in websites like Poshmark without having actually used them.
One of the most well-known reselling marketplaces is Poshmark. It enables users to declutter their closets or start a business by reselling clothing, accessories, home goods, and other items.
You might initially doubt if Poshmark is a legitimate business. Poshmark is a real fashion marketplace, but there are a few common scams you should watch out for.
We have put together a thorough guide on how to avoid scammers while shopping online on Poshmark after carefully reviewing the company regulations of Poshmark and searching the internet for user reviews and analysis of their business practices.
Online sales of cheap designer clothing are a significant industry for many reputable retailers, including numerous Poshmark sellers. The market for discounted used apparel is nevertheless susceptible to fake goods and unethical business methods.
Poshmark is a great website for finding great deals and a place to find old and high-end items at reasonable prices. Continue reading to discover more about how Poshmark operates.
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What is Poshmark?
Despite being a relative newcomer to the internet retail world, Poshmark is a well-established website for buying and selling old clothing. The website is comparable to Mercari and eBay, but it only permits postings for apparel, accessories, and cosmetics. Anyone can sign up to use the website as a buyer or seller.
It started out selling mostly used women’s clothing but has recently changed to include new merchandise as well. Poshmark has since expanded into categories for Men, Kids, Household, Electronics, Pet Items, and Beauty & Wellness making it a bit like Etsy, where you can sell a range of items, including Digital Downloads.
Poshmark has made a lot of effort to make using their platform for buying and selling as simple and secure as possible. They are among the top reselling sites in the market because of their simple purchasing and delivery alternatives.
Since its launch, the Poshmark app has continuously increased and today has 80 million users (buyers and sellers combined).
Users can purchase items and sell products at any price, new or gently used, and Poshmark receives a sizeable commission from each sale in exchange for their use of the service.
Lululemon, Nike, American Eagle, Free People, and Anthropologie are a few of the well-known brands that you can find on Poshmark, but every day, thousands of other brands are traded and cycled there as well.
Poshmark’s social networking component, which enables users to follow other users, share and like their listings, and post comments, is a standout feature. As a result, an experience that goes beyond simple buying and selling of goods is created.
The platform used by Poshmark charges a fee for each sale made via its website or mobile application. Poshmark charges a percentage of the sale price, which fluctuates depending on the selling price of the item, and the seller determines the item’s pricing.
Additionally, Poshmark provides a shipping label service that makes it simple for sellers to ship their goods to customers, and customers are covered by Poshmark’s buyer protection guarantee.
The boutique market for goods offered to clients directly from wholesale has expanded. Now, Poshmark operates in the US, Canada, Australia, and India.
Poshmark has disclosed that it plans to broaden its product selection and go even further abroad, so that one day someone in Italy will be able to purchase something from Canada and someone in Australia will be able to shop on Poshmark India.
If you’re looking for a unicorn item that you once found but haven’t been able to find since, Poshmark can also help. The site might be able to help you get access to a brand that you once discovered and adored but has since vanished or a trendy item you’d like to wear but not at full price.
Who is behind Poshmark?
Manish Chandra established the social shopping platform Kaboodle before Poshmark. Poshmark was started in 2011 by Chandra, Tracy Sun, Gautam Golwala, and Chetan Pungaliya in Manish’s garage after Chandra sold Kaboodle to Hearst in 2007.
Poshmark disclosed in November 2017 that it has secured $87.5 million in Series D capital from a venture-backed investor led by Temasek of Singapore, valued at close to $600 million. Together with them, Menlo Ventures, GGV Capital, Mayfield, and other investors contributed a total of $160 million.
Manish Chandra, the CEO and founder of Poshmark, revealed that since the website’s introduction, sellers on it have made $1 billion selling clothing and accessories in an interview with Reuters on May 22.
Much of these profits, according to Reuters, were “concentrated in a number of vendors making five, six, and even seven figures.”
Poshmark went public on January 14, 2021, with a valuation of over $3 billion, and it was listed on the Nasdaq Stock Exchange under the ticker POSH.
Poshmark announced its first acquisition in October 2021: Suede One, a website for determining the provenance of footwear.
Naver Corporation, a South Korean internet giant, and Poshmark reached a deal in October 2022 for a combined enterprise value of US$1.2 billion. The transaction was completed in January 2023.
In May 2019, Poshmark declared the launch of its first overseas operation in Canada. In Canada, there are more than 2.5 million Poshmark members who have listed goods valued almost $500 million as of May 2021.
As part of its plan to spur long-term growth through worldwide expansion, starting with English-speaking nations, Poshmark announced its entry to Australia in February 2021. Later, it grew to include India.
How Poshmark works
If you’ve used websites like eBay previously, you’ll quickly understand how Poshmark works because it functions similarly to many other secondhand peer-to-peer markets.
Customers peruse item listings that can be categorized. Buyers may make an offer on each item or make an explicit purchase decision for each item.
How to sell on Poshmark
If you want to sell clothes online via Poshmark, here’s how you go about it:
- Create a profile
You must register for a poshmark account before you can use Poshmark. You have the option of signing up using your email address, your Facebook account, or your Google account.
You must create a password and enter basic information about yourself, like your name, address, and phone number. To get payment for your first sale, you’ll then need to set up all of your payment details.
- List your stuff
You can begin selling your items for sale after creating an account. You must add images of the item, write a description, and establish a pricing.
Take images from various perspectives and of the object in use to get a sense of its size. As an added measure of transparency, take images of labels and flaws.
Each of your listings on Poshmark must have a thorough description in addition to your images. You have this opportunity to offer your goods, so put some thought into writing something compelling.
Add any pertinent keywords in your listings so that purchasers may locate them quickly. To prevent returns, it is also practical to include measurements and mention any flaws.
- Choose a price
Bear in mind that Poshmark charges a 20% fee on all transactions when setting your item’s price (more on that later). In light of this, try to set your prices so that they are both reasonable and profitable. To find the ideal pricing, use the “Edit Price” function to change your prices.
- Add style tags
Poshmark enables you to add style tags like “vintage” or “90s” to make your listings more visible to consumers who are looking for particular things.
- Post your listings online
Poshmark is a social platform, therefore posting your listings online is an essential step in the procedure. You can share your listings with your followers as well as at the numerous shopping get-togethers and events hosted by Poshmark.
- Make a sale
If a customer is interested in buying one of your things, they may either submit an offer or pay the indicated amount. When a sale occurs, you’ll be notified.
- Ship your item
When a transaction has been concluded, you’ll have to ship the product to the buyer’s address. You can print out a pre-paid shipping label from Poshmark and use it to send the item.
Poshmark has one of the most straightforward shipping options out of all the reselling platforms, which is why sellers adore it. Sellers can use free USPS shipping labels and ship up to 5 pounds for a fixed rate. This eliminates the need for sellers to specify the weight of each item when listing them and eliminates the need to select from a variety of shipping alternatives.
- Receiving payment
Poshmark will release the money to you, less their commission, once the buyer has received and accepted the item.
Poshmark allows you to simply transfer money from purchases to your bank account after the item has been verified delivered.
Upon the conclusion of a transaction, both the buyer and the seller are able to do so. This promotes community trust and guarantees a great user experience for all users.
Poshmark promotes itself as a platform for closet purging, but a limited number of sellers have seen the potential to turn reselling apparel and household goods into a steady stream of money.
Resellers that work full- or part-time will nevertheless buy product from the cheapest vendors to resale online for a profit. To save costs, you may accept donations, shop at consignment shops or outlet stores, or buy in bulk. The majority of sales on Poshmark come from “power sellers,” despite the fact that the majority of its members are casual shoppers and sellers.
If sellers use the site’s pre-paid, pre-addressed shipping labels, their goods are safeguarded.
How to buy on Poshmark
Making purchases is very straightforward, but there are a few things you can do to make the process much more enjoyable.
Poshmark’s user interface is really simple and straightforward to use, which makes purchasing a breeze.
- Although you can search broadly by item category, you’ll get more accurate results if you type in more precise phrases.
- You’ll have more success locating what you want if your searches are more focused. For instance, searching for “vintage shirt” instead of “vintage long sleeve Ralph Lauren polo shirt” will get less precise results.
- Also, you should use the various filters to focus your search. Filtering options include brand, category, size, color, and price.
- Entering a search word first, then using any desired filters, is a wonderful method of searching.
- Remember that Poshmark’s findings aren’t always accurate. For instance, vendors frequently offer items with inaccurate sizes.
- Also, the search algorithm isn’t particularly good, so you might notice some entries with tangential relationships.
- When you see something you want, you have three options: buy it, make an offer, or add it to your favourites.
- You might make an outright purchase if the product you’re considering is in high demand or if you just think the pricing is reasonable.
- You can make an offer on the item if you’re looking for a better deal. Many vendors will agree to fair offers, and others will counteroffer in an attempt to reach an agreement.
- If you “like” the item, the seller may send you a personal offer known as a “Offer to Liker.” The seller will determine how this changes.
- If you “like” the item, the seller may send you a personal offer known as a “Offer to Liker.” Depending on the vendor, this will change, as will the offers you receive. Typically, a large discount (between 10% and 15%) and free shipping are included.
- When you’re ready to make a purchase, you can pay with PayPal, Apple Pay, Google Pay, Venmo, or Affirm.
- Poshmark will email you a shipping label that you may use whenever an item of yours is purchased. The platform has a set cost of $7.67 that is paid by the buyer.
- Once an item is delivered, buyers can either keep it or return it.
What products to Sell on Poshmark to Make Money
Although selling clothing on Poshmark is popular, there are many other things you may sell to make money. Here are some suggestions for items to sell on Poshmark to generate income.
- Clothing. Poshmark frequently features the sale of clothing for men, women, and kids. Everything must be brand-new or little used. Used clothing must be clean and accurately stated in the listing’s description section. Used underwear and other products that don’t fit into the defined categories available on the website are prohibited from sale.
- Jewelry. Jewelry and other accessories may be sold on Poshmark if they are either brand new or in excellent condition. It is forbidden to purchase anything made from a threatened or extinct species. Another alternative marketplace is Etsy.
- Makeup. Cosmetics and other personal care products that have never been used or opened are permitted. Things must be devoid of alcohol and aerosols and never have been swatched. Also, they must all be in their original packing. Replicas and “inspired by” items are not permitted.
- Certain Home Products. The sale of home furnishings featuring tigers, sharks, turtle shells, whales, etc. is prohibited on the website. Visit the Poshmark website to see a complete list of things for the house that are forbidden. When listing, items that do not fit into the categories for household products cannot be sold.
- Choose Pet Products. When making the listing, pet-related things must be properly categorized in order to comply with rules. The item you are selling online cannot be sold on the website if it is not available for purchase.
How does Poshmark make money?
Depending on the total value of the sale, Poshmark will charge a varying amount for fees.
Poshmark charges a normal $2.95 for an item at this pricing if you sell it for less than USD 15.00. Knowing this is crucial since, given fair price of the cut, posting any things costing less than $10 would be all but useless.
Poshmark deducts a small fee from the total order price once your item has sold. The cost is a set flat charge of $2.95 for purchases under $15. The price is 20% and you retain 80% of sales over $15.
20% of the sales are taken as commission by Poshmark for items that cost more than USD 15.00. It’s a hard pill to take, especially if you’re trying to recoup your initial investment and your item is expensive, brand-new, and still has the tags on it.
Even while the 20% fee is rather high, it can still be very profitable, especially if you’re selling more expensive goods.
Poshmark has an estimated 50 million members, so it would seem that having access to such a large buying community justifies such a huge commission share.
Pros of Poshmark
Simple to use
Poshmark’s ease of use is one of its greatest features. Even if you’re not experienced with apps, the interface is easy to use. It only takes a few minutes to list an item, and there are lots of tutorials available if you need assistance getting started.
No listing charges
Poshmark business charges a a flat fee of $2.95 fee on all purchases under $15 and a 20% commission on purchases over $15. The marketplace is comparable to others, however there is no listing cost, so you can list for nothing.
For instance, on Etsy, if you have more than one item in stock, you must pay a renewal fee every time the item sells in addition to the $0.20 listing fee. Moreover, Poshmark does not charge any additional costs.
Keeping Your Cash Safe
Your payment information is completely secure on the website because sellers never see it. Poshmark handles the processing of your payments. Once you’ve confirmed that you’ve received your goods and are pleased, Poshmark will direct deposit to your seller immediately.
While though Poshmark’s online store is private, secure, and safe, there is always some danger when purchasing something. Some vendors may misrepresent poor quality of a product or downplay its problems. If this occurs to you, take pictures of the item right away, and as soon as you can, open a dispute with new seller on the website. In the event that the item you receive is not “as described,” Poshmark will safeguard you.
Keeping Your Identity and Privacy Safe
You have the option to choose a username when creating your account that is unrelated to your real name and cannot be used to identify you.
You can fill out your profile page with as much or as much money as little information as you choose. But, after you purchase an item from a seller, they will require your mailing address in order to send it to you.
Sellers are provided with buyers’ addresses on eBay and Mercari as well, thus this is not specific to Poshmark. If you truly don’t want to give anyone your home address, you can think about getting a P.O. box at the post office down the street or having products delivered to your place of employment.
You will be aware of the amount of money you will get before a buyer purchases something thanks to the site’s transparent seller fees. As soon as the buyer accepts the item, you have access to the money from the sale. After four days, the money is immediately released to you if the buyer doesn’t pick up the item.
Poshmark has millions of users (8 and counting), so there is a significant probability that someone looking for your things will notice them.
Control over your pricing
In contrast to other online marketplaces, Poshmark does not specify the price at which you should list your goods. This allows you the freedom to set prices however you see fit.
Because they know low-cost things sell, companies like Facebook Marketplace can flag listings as being priced more than other items and throttle traffic.They do this because they are aware that low-cost things sell more quickly.
Not limited to used goods
Poshmark allows sellers to sell both new and used goods in a variety of categories, unlike some marketplaces that exclusively let the sale of used goods.
There is no cap on earnings
The amount of money you may make on Poshmark is unlimited; it just depends on how much time and effort you are prepared to invest in it and what you are selling.
Free labels for shipping
There is no need to visit the post office or figure out shipping costs because Poshmark gives you a free USPS Priority Mail shipping label with every item you sell.
Cons of Poshmark
Sometimes the Poshmark seller is just not trustworthy. Verify someone’s account and transaction history with Poshmark before transacting with them.
Never purchase something from poshmark sellers without first reading the reviews. Check to see if the seller has been using Poshmark for a decent amount of time and has a lot of positive feedback from other poshmark users.
You should usually steer clear of a vendor if there are many bad Poshmark reviews about them. You will be taking a chance by even buying clothes from a seller if they are brand new seller on to the selling site and have no customer ratings.
Some of the items on Poshmark are fakes, just like on any other site where you can buy cheap fashion. Poshmark has an official zero-tolerance policy for any counterfeit items and goods, and anyone who offers such goods is gravely in breach of the rules and conditions.
Despite the corporate policy, fraudsters will continue to make online scams and try to use the e-commerce platform to offer fake items. Buyer Beware.
Getting a damaged shipment
One of the most frequent complaints on Poshmark involves getting damaged goods, which may be problematic for both customers and sellers.
From the viewpoint of the buyer’s remorse, it is possible to acquire a specific item and subsequently receive something that is either badly damaged or entirely different from what was represented.
In this situation, you must contact Poshmark’s customer service and upload proof of your purchase. After processing the claim, the business will decide whether or not to accept your return request.
Fake claims of goods being damaged
Some con artists may purchase a product and then make up claims that they were sent the wrong or broken item. From the buyer’s protection and the standpoint of the seller, this kind of con might cause major problems.
Shady customer support
The most common complaint is unsatisfactory customer service from poshmark support, which easily takes the top spot. Both Poshmark buyers and sellers complain about needing to send messages more than once before receiving a response—if they’re fortunate enough to receive one at all.
The Poshmark customer care team is overworked as a result of the app’s unprecedented growth in recent years. Perhaps they can increase the size of their support team to raise customer service standards to a respectable level.
The 20% commission fee is a close second and, depending on the sale price, it may reduce your profits. A 20% charge is rather hefty if you sell an item for $16, for example. Yet, if you sell for $1,000, the 20% seems more reasonable and unobtrusive because you would have made a tidy $800.
Several vendors have complained that their payments are occasionally withheld until after the customer has marked the item as received. But, this is in place to safeguard customers from dishonest merchants or anyone attempting to obtain a refund for defective items, for instance.
When a listing receives a lot of likes but no takes, several users have complained that Poshmark reduces their listing traffic, forcing sellers to use the price reduction feature.
Poshmark notifies all “likers” that the item is on sale after the 10% price reduction feature has been used, which significantly increases traffic.
Yet, sellers feel that this tactic reduces their revenues given the 20% commission cost.
Products not selling
The average time it can take to sell an item on Poshmark is another complaint some sellers have about the website. These criticisms, however, are only true for particular categories, such as skirts, which take a lot longer to sell.
Poshmark now has a customer satisfaction rating of 1.55 stars out of 2,492 reviews, which suggests that most consumers are often unsatisfied with their purchases.
Many consumers value the sustainability of buying and selling used goods.
Several customers have had problems with shipping and delivery, including shipments that were lost or delayed.
Some users have complained about getting things that weren’t as described or were damaged.
Several people view Poshmark’s 20% commission on sales to be excessive.
Customers have complained about Poshmark’s customer support being tough, with staff responding slowly and being unhelpful.
Since sizes might differ between brands and vendors, some users have encountered trouble with item sizing.
Customer service, phone number, and credit card issues are the most often mentioned complaints about Poshmark in reviews. Among Consignment websites, Poshmark is ranked 32nd.
What is Poshmark’s bundling process?
Poshmark makes bundling quick and simple. Let’s define bundling first, though.
When buying multiple things from a seller, you can ask to have them packaged together and save money by purchasing a bundle discounts a greater number of items. Simply add the items to your cart and choose “bundle” from the payment prompt menu to accomplish this.
Shops frequently have a selling option with a bundle discount in place. If the store you’re purchasing from doesn’t, you can propose a price for your bundle of clothes by sending an email.
This is a great chance for thrifty consumers, especially on things that haven’t been worn all that much.
How to Recognize Fakes and Duplicates on Poshmark?
Look for clear images with brand logos as well as tags and boxes, if available, to avoid being duped by a very fake item.
Ensure the seller you are purchasing from is reliable. By looking at a seller’s “about” page, you might learn more about their past. You can view their sales history and any feedback received from customers. It is unlikely that the things a seller has posted are fake if they have a high rating and a large number of sales.
How Can I Host an Event on Poshmark?
Poshmark “Posh Parties” require you to be a community member in good standing with a significant following, to frequently buy and sell items in online marketplace, to complete the application procedure, and to meet other requirements.
Hence, regrettably, you cannot participate in the program if you have not yet made your first purchase or are only now advertising your stuff from a closet cleanup. After evaluation, Poshmark will decide whether to accept your application, at which point you can start holding Poshmark events.
Having a party gives you visibility with potential customers. On Poshmark, your item views significantly rise when you host a party.
Make sure you understand the Poshmark seller fees that apply to your products and factor flat rate shipping charges into your sales price.
How Purchasers May Protect Themselves From Poshmark Scams?
Customers should choose a strong password to secure their Poshmark accounts and be aware that Poshmark will never contact them and request their password. Never attempt to do business or communicate outside of the Poshmark platform because you will forfeit the company’s transaction protection.
You should also be wary of generic emails you receive from firms, such as Poshmark, because scammers frequently employ a variety of techniques to win your trust and personal data. Double-check the “from” address area to be sure the email is authentic before proceeding if it requests that you click on links, supply extra information, or informs you that you have won anything. Wait before responding to that email if you are unsure. Instead, make a new one.
Is Selling on Poshmark Worth It?
Because Poshmark isn’t for everyone, each person’s response will be unique. Both benefits and drawbacks of selling on the platform exist. Hence, you must decide whether it is worthwhile for you personally.
Consider your real motivation for adopting this platform for apparel sales. Having your own website or choosing a platform with reduced selling costs is more profitable, I’ve discovered in my research for this Poshmark review. Poshmark might be worthwhile if you only want to sell sometimes.
How Can I Sell Poshmark Wholesale Items?
Poshmark has introduced a new tool called the Poshmark Wholesale gateway that enables users to purchase modest quantities of stock to resell inside their stores.
Individuals must finish certification in order to qualify and utilize the wholesale site. They can start making purchases from a list of sold brands on the wholesale portal after accreditation is complete. The gateway can be the best choice to boost your inventory if you are a vendor whose fame depends on your wide variety of a particular item or brand.
Just remember to adhere to Poshmark’s customer service standards and keep promoting your products on social media. This will be the most effective technique to make sure you’re making enough money off of those who are buying online.
How Do I Increase My Poshmark Followers?
Similar to the advice from expanding your sales and selling your merchandise quickly, you’ll want to give your customers outstanding customer service.
You should also promote additional products that are for sale in stores you trust and that have a good Poshmark reputation. Associating with other excellent vendors may enable you to quickly grow your following.
How does shipping work on Poshmark?
Poshmark provides a shipping label for sellers to use, and buyers pay for shipping as part of the purchase price. Once the item is shipped, Poshmark provides tracking information.
How do refunds work on Poshmark?
To protect customers, Poshmark has a return policy in place. A buyer can start a complaint with Poshmark to ask for a refund if they receive an item that is misrepresented or in bad shape.
What is the rating system for Poshmark?
After a transaction is finished, buyers and sellers on Poshmark can rate one another using a rating system. Users are now able to find trustworthy buyers and sellers on the platform, helping to increase platform confidence.
How are expensive things authenticated by Poshmark?
A luxury authentication service is available on Poshmark for things that cost more than $500. Prior to shipping an item to the buyer once it has been sold on Poshmark, the item is sent to a team of specialists for authentication.
Why is Poshmark’s fee so high?
Poshmark’s fees ($2.95 for sold items under $15 and 20% for items $15 and over) are high because they provide so many things to help you make sales: the marketplace website and app, customer service, marketing to bring in more buyers, etc. The fees are middle-of-the-road compared to many marketplaces and cheaper than others such as Tradesy and The RealReal.
Tips for Selling on Poshmark
Finding clothing and listing them on Poshmark are only one of the formula for selling items successfully. Have a look at these suggestions for effective Poshmark selling.
- Locate Well-known Brands. Popular brand name products are frequently searched for on the marketplace. On popular items, many purchasers are searching for a discount. The best approach to earn money quickly is to sell name-brand goods that will draw clients.
- List comparable items in groups. Whenever a buyer buys several items from different brand from a seller’s Poshmark closet at once, Poshmark enables sellers to give discounts to buyers. This allows the vendor to expedite packaging. Publish the items on a website and share them there as well. To increase traffic and sales to your closet, use Pinterest.
- Sell Trends. Keep an eye on the latest trends and market goods that are in high demand. Trends change over time. It’s critical to pay attention to any changes.
Tips for Buying on Poshmark
Here are some pointers to remember so that your Poshmark shopping experience is successful.
- Save your searches. The ability to store searches has now been made available on Poshmark, making it quicker and simpler to find what you’re looking for. After modifying the filters to “just in” and for price, size, etc. or your preset sizes, you can save your search. You might need to exercise patience and check back regularly if you’re seeking for a certain item in a specific size.
- like your preferred items. like to be informed when a product’s retail price is is reduced by the vendor. You can often get even more of a discount by purchasing along with cheap shipping. To receive updates immediately, make sure that your text or email notifications are turned on.
- Bundle up your preferred things. To benefit from bundle savings, the chance to negotiate prices informally, and single delivery costs for several goods, add your favorite things to bundles. When you purchase multiple items from a vendor, the majority of them are prepared to negotiate a discount for you.
Being a smart and cautious customer is crucial because online purchasing can be challenging.
In general, Poshmark bases its business strategy on collecting a cut of all sales made through its website, which encourages them to offer a successful and user-friendly platform for vendors to generate income.
Paying close attention to details and maintaining professionalism are two pieces of advice I personally have for safe purchasing and selling on Poshmark. In Poshmark, communication is the key to success.
Although ratings alone may not provide a complete picture, it seems that Poshmark could use some work.
Poshmark may rank among the top websites to have people sell their unwanted items if it takes a more aggressive approach to buyer and seller help. It is a powerful platform for sellers because there are various advertising possibilities, it is user-friendly and straightforward to use, and you can (re)sell products quite rapidly.
Before you leave
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David Fortune has been the editor NoBSIMReviews.com since 2019. He is an expert at writing content on stock advisory services, side hustles, reviewing online business opportunities and many more topics. You can learn more about David on our about us page.