How Much Does Poshmark Take? Complete 2024 Fee Guide
Poshmark is a vibrant online marketplace where people gather to buy and sell everything from trendy styles to gently-loved fashion, home decor and even beauty products. It is a platform for both buyers and sellers where a buyer can buy items outright or can make offers to negotiate the price, and a seller can sell it’s items by listing them along with their pictures, description, and prices.
Understanding the Poshmark’s fee is essential for sellers so that they can price their items wisely, by covering their cost. Poshmark takes a commission (flat $2.95 for sales less than $15 and 20% for sales over $15). It is an easy to use platform which offers easy prepared delivery for sellers and for buyers typically it covers the shipping costs. This article is the answer of “How much does Poshmark take?”
Poshmark’s Commission Structure
Here is the overview of Poshmark’s fee breakdown:
For sales under 15$
Poshmark takes a fixed fee of 2.95$ on orders less than 15$. It is a fixed fee, so Poshmark automatically cut it from their order’s payment.
For sales above 15$
If the order exceeds $ 15$, Poshmark takes a percentage of the commission fee, which is 20%. No matter how big an order you sell, you can have 80% of the order’s amount, and Poshmark will take out the rest of 20% as a commission fee.
How Much Does Poshmark Take for Each Sale?
As we have discussed the Poshmark’s commission structure above, now here is the explained version as a picture:
I hope you can understand the Poshmark’s fee much better through this picture. This fee is automatically deducted from the earnings as a sale is completed. However, you can reduce this fee by selling items as bundles. Here is the picture through which you can understand that selling items as bundles can save you more.
You can easily understand the selling fees through these pictures.
Other Costs to Consider When Selling on Poshmark
There are no additional service charges beyond the selling fees, but if the seller offers a delivery discount, it would be deducted from the seller’s earnings. There are no hidden charges, but sellers may have to cover shipping costs if an order is returned or refunded. Buyers usually have to pay $7.97 as delivery charges, but if the seller provides a shipping discount, then the seller must pay the amount.
The buyers need to buy shipping label upgrades for orders above 5 lbs of weight according to the order’s weight. You can see the table to understand the shipping upgrade rates for orders above 5 lbs.
| Package Weight | Label upgrade fee for Sellers |
|---|---|
| Up to 5 pounds | Free |
| 6 pounds | $4.50 |
| 7 pounds | $9.00 |
| 8 pounds | $13.50 |
| 9 pounds | $18.00 |
| 10 pounds | $22.50 |
There are withdrawal fees if you are willing to withdraw your money instantly. This fee is different for different ways of transfers.
- PayPal: Your money will be in your account within 30 minutes, but there is a withdrawal fee of $0.35.
- Instant Transfer: There is also a withdrawal fee of $2, but you will get your money in your account within 30 minutes.
- Venmo: It also takes a $0.35 fee to transfer money within 30 minutes.
But if you are unwilling to pay these fees, you can use free methods, which take longer.
- Direct Deposit: There are no withdrawal fees, but it will take 2-3 business days to receive your amount.
- Mailed Check From Poshmark: You can receive a check in the mail without any fee, but it will also take 1-2 weeks.
How to Maximize Your Earnings on Poshmark:
You can use different ways to maximize your earnings on Poshmark. Here are some tips through which you can maximize your earnings:
Tips on pricing your items
You can use these tips at the time of pricing to cover fees:
- Account for Fees: For sales under $15, add at least $2.95 to your price. For items over $15, factor in Poshmark’s 20% fee.
- Include Shipping Discounts: If you are giving shipping discounts, you must raise the item rate slightly to cover the expense.
- Compare Prices: Compare your prices with similar listings to price competitively while covering fees and making a profit.
- Leave Room for Offers: You can price a bit higher to give room for negotiation while ensuring you meet your target earnings after paying fees.
Bundling items to reduce shipping costs
Bundling items on Poshmark allows buyers to purchase multiple items from the same seller in one order, reducing overall shipping costs. Since Poshmark’s shipping label covers packages up to 5 lbs, combining items into a single shipment helps buyers save on shipping fees. As a seller, offering bundle discounts can encourage larger sales while keeping shipping costs manageable for your customers.
Is Selling on Poshmark Worth It?
Poshmark is a popular platform with a 20% fee for sales over $15 and a $2.95 fee for sales under $15. It provides prepaid USPS shipping labels for up to 5 lbs, and buyers usually cover shipping costs. In comparison, eBay charges 10-12% fees plus listing fees, offers flexible shipping options, and caters to a broad range of items. Mercari has a 10% fee and allows various shipping methods, targeting a diverse product range. Depop, with a 10% fee, focuses on trendy and vintage fashion items, offering a social media-style interface. Facebook Marketplace stands out with no selling fees for most categories and allows for local pickups or nationwide shipping, integrated with Facebook for easy sharing. Each platform has unique features, so choose one based on your needs, such as fees, shipping options, and target audience.
If you want to make extra money or start a small business, selling on this platform can be a good way. The platform is easy to use, has many buyers, and provides prepaid shipping labels, making the process simple. However, remember that Poshmark takes 20% of sales over $15, and there may be other costs like shipping discounts or packaging. It depends on how well you price your items, offer good customer service, and manage your listings. If you want to learn how Poshmark works, read the article “How does Poshmark work?“
Conclusion
To get the most out of selling on Poshmark, it’s essential to understand their fee structure. By factoring in these fees and using smart selling strategies, you can boost your profits. Optimize your listings, set competitive prices, and consider offering bundle discounts to cover costs and maximize earnings. Start making these adjustments today and watch your sales grow while managing Poshmark’s fees effectively.
