June 5, 2024

All About Poshmark Fees: A Complete Breakdown of Poshmark Selling Costs

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Selling online comes with associated selling costs, and that's true even for Poshmark, where most sellers sell secondhand and used items from their closet. After all, Poshmark provides sellers with a platform to list, advertise, and safely sell their items, and that inevitably comes at a cost. As a seller, knowing what to expect from Poshmark fees is the first step to creating a successful Poshmark business. Knowing how much are Poshmark fees before you begin selling is crucial to calculating your costs and understanding what your bottom line will look like, and will have implications for everything from your pricing strategy to your advertising budget. In this guide, we'll take a look at Poshmark fees for selling in 2024, help you better understand how Poshmark fees work, and examine ways to reduce your fees on Poshmark without violating any marketplace policies.

Poshmark fees

Poshmark Listing and Selling Fees

Unlike many marketplaces, Poshmark does not charge a fee to list items on its platform. In fact, you'll only ever pay Poshmark fees for selling, not for listing, making it easy and relatively low-risk to get started on Poshmark by selling your own secondhand goods. Poshmark's selling fee structure is simple: a flat fee of $2.95 for orders totaling less than $15, and a commission of 20% for orders totaling $15 or more. Below, we'll take a look at the possible Poshmark fees you may incur in various selling situations, including bundle sales, sales made via Posh Shows and Posh Parties, as well as fees associated with sales using Posh Authenticate.

Poshmark Selling Fees for Bundles

While bundles certainly have benefits for both sellers and buyers on Poshmark, discounted selling fees is not one of them. Sellers will pay the same selling fee on bundles as they would on individual items sold: $2.95 for sales under $15, or 20% for sales over $15. While the fees may technically be identical when selling multiple items via a bundle vs selling the same items individually, there are cases where opting for a bundle will actually be cheaper in terms of selling fees than selling the items individually. This is because for items under $15, the $2.95 fee can be much higher than 20%, which takes such a large chunk out of profits that it's often simply not worth the hassle for sellers.

In the table below, we compare the two selling scenarios: selling a pair of earrings, a necklace, a ring, a scarf, a bracelet, and a beach hat individually, or selling them as a bundle in one transaction.

Items / Price
Fee When Sold Individually
Fee When Sold as a Bundle
Earrings - $14.99
Necklace - $14.99
Ring - $20
Scarf - $12.99
Bracelet -$20
Beach hat - $5
Fee When Sold Individually
$2.95 (flat fee)
$2.95 (flat fee)
$4.00 (20% fee)
$2.95 (flat fee)
$4.00 (20% fee)
$2.95 (flat fee)
Fee When Sold as a Bundle
20% of $87.97
Total Sales Amount:
Total Selling Fees for Separate Transactions:
Total Selling Fees for Bundle Transaction:

As you can see, the Poshmark selling fees for the bundle sale are lower than the total Poshmark selling fees when the same items are sold individually.

Poshmark Selling Fees for Posh Shows

Posh Shows are live selling events where you'll be able to interact with buyers via live chat while showcasing your listed items. Items can be sold and bought either in fixed-price or auction format, and once they're sold, they're subject to the same Poshmark selling fee rate: $2.95 for sales under $15, and 20% for sales over $15.

Poshmark Selling Fees for Posh Party Live

Posh Parties are themed shopping events hosted by Poshmark, where you can enroll your Closet's listings. These help buyers find items centered around a theme – think Mother's Day gifts or summer BBQ outfits. Like with Posh Shows, items sold through Posh Parties are subject to the same Poshmark selling fee: 20% for sales over $15, and $2.95 for sales less than $15.

Poshmark Fees for Posh Authenticate

As opposed to other secondhand selling marketplaces like Mercari or eBay, Poshmark's authentication service is both required and free of charge, meaning that neither the seller nor the buyer is charged for Posh Authenticate. Whenever certain items are sold on Poshmark for $500 or more, Poshmark will send them for professional authentication to ensure that are not replicas or counterfeits, which are forbidden on the platform.

Poshmark Shipping Fee

For most orders, shipping on Poshmark costs $7.97, which is paid by the buyer. You'll simply receive a prepaid USPS Priority Mail shipping label from Poshmark once you've made a sale, and can use it to ship out the order. The only exceptions to this are orders containing certain electronics, and bundles or single-item orders that weigh 5lbs or more. In the case of electronics, you'll need to contact Poshmark to request a USPS Ground Advantage shipping label (as opposed to the standard USPS Priority Mail label that is automatically sent out to you when an item sells). Read more about shipping electronics and items with lithium batteries on Poshmark's guide to shipping electronics.

For orders or bundles weighing more than 5lbs, you'll need to purchase a shipping label upgrade based on the weight of the package through Poshmark. See the table below for shipping upgrade rates on Poshmark for orders weighing more than 5lbs.

Poshmark shipping fees
Source: Poshmark

Poshmark Payment Processing Fee

Unlike most online marketplaces, Poshmark doesn't charge a separate payment processing fee for each transaction. Instead, the costs of processing each payment is included in the selling fee charged on each sale made on Poshmark. As mentioned above, this fee is $2.95 for orders under $15, and 20% for orders over $15.

While this may seem like a good deal, it's important to remember that without an outright fee for payment processing, Poshmark does err on the side of profit when it comes to charging selling fees. When compared to similar marketplaces like Depop or Mercari, Poshmark's fees for selling are usually much higher.

how much are Poshmark fees

Poshmark Earnings Withdrawal Fee

There are several ways to redeem your earnings on Poshmark, and not all of them come with an earnings withdrawal fee. While the fee-free versions take longer to deposit your earnings, they are by far the simplest way to cut back on Poshmark fees and keep as much of your earnings as possible. In our experience, the best approach is to redeem your earnings at regular, pre-scheduled intervals, so you can plan ahead and withdraw your earnings with the slower (yet free!) earnings withdrawal methods. Below, we've listed the five earning redemption methods you'll have available to you as a Poshmark seller. You can withdraw your earnings at any time, provided that you have sufficient funds to cover the fees for the redemption method you choose (if applicable).

  • Instant Transfer: Earnings withdrawal fee of $2, money in your account within 30 minutes.
  • PayPal: Earnings withdrawal fee of $0.35, money in your account within 30 minutes.
  • Venmo: Earnings withdrawal fee of $0.35, money in your account within 30 minutes.
  • Direct Deposit: No earnings withdrawal fee, money in your account within 2-3 business days.
  • Mailed Check from Poshmark: No earnings withdrawal fee. Check arrives in the mail within 2 weeks.

We recommend using the direct deposit option to withdraw earnings once or twice a month. It is the fastest free option, and ensures that you keep as much of your earnings as possible when redeeming your Poshmark earnings.

Sales Tax on Poshmark

When you sell on Poshmark, the responsibility of calculating, collecting, and submitting sales tax for each sale rests with Poshmark. As a seller, you're not responsible for collecting sales tax on your sales. Any time you make a sale, Poshmark will calculate the sales tax for each order based on order amount and buyer location, and charge the buyer for sales tax. The sales tax is paid for by the buyer in addition to the purchase price, not taken out of your earnings, and has no effect on your bottom line.

For your own tax purposes, you'll be able to download a report of sales tax collected per order from Poshmark directly. The report is known as a "My Sales Report," and can be generated by logging into your Poshmark account, clicking on your profile picture, selecting "Order Activity," then clicking on "My Sales Report." You'll then be able to input a date range for your desired report, and a link to download the generated report will be sent to the email address associated with your Poshmark account.

Poshmark fees for selling

Tips for Reducing Poshmark Fees

Poshmark fees for selling may be simple, but they're also quite steep in comparison to similar platforms. To some degree, they are an inevitable reality of selling on Poshmark, but in our experience there are several ways to reduce your fees. In this section, we'll take a look at several methods and strategies for reducing your Poshmark selling fees, so you can sell more on Poshmark and get more out of every sale.  

Bundle Items for Lower Selling Fees

Poshmark charges a selling fee for each transaction on the platform: $2.95 for transactions under $15, and 20% for transactions over $15. When you sell a bundle, the selling fee is calculated for all the items in the bundle, making it a great opportunity for selling lower-priced items for a lower overall selling fee. Creating a bundle of items that would individually sell for less than $15, or bundling such items with higher-priced items over $15, is a good way to save on selling fees and make those item sales more worthwhile. Plus, buyers will be far more likely to purchase these items in a bundle, too, since they only have to pay the $7.97 flat rate shipping fee once for the entire bundle rather than for each individual item. Lower selling fees for you, and lower shipping costs for your buyers – a win-win situation for sellers and buyers alike!

Leverage Discounted Shipping on Closet Clear Out Days

There's no shortage of sales and events on Poshmark, and one of the best ones for saving on Poshmark fees is Poshmark's twice-weekly Closet Clear Out event. Closet Clear Out (CCO) is held every Friday and Sunday, and is a special discount event for both buyers and sellers that's intended to boost sales.

To become eligible for CCO and enroll a listing, your listing must already have at least one liker and you'll have to drop your listing price by 10% below its historical low price during the CCO event (i.e. the lowest price for that listing for the lifetime of that listing, but no lower than $10). After you've dropped your listing price, Poshmark will send out a notification to the buyers who've liked your listing with the new discounted price, and will also give them a shipping discount on top of this special discounted price. This offer will be available to buyers for 6 hours – or until a buyer snaps it up – making it the type of act-fast flash sale that encourages buyers to make a purchase quickly.

The obvious downside to this is that if a buyer doesn't make a purchase through the CCO sale, you're stuck with a new historical low price, meaning that next time you want to enroll the listing in CCO, you'll have to drop the price by 10% from the previously discounted price. The only way to get around this is by delisting and relisting the item, so that the new listing doesn't have an already discounted historical low price. This can be very tedious if you're managing more than a handful of items, but when you manage your Poshmark Closet with ExportYourStore, you'll be able to delist and relist items in bulk with just a few clicks!

Take Advantage of Poshmark's Free Shipping

By default, Poshmark charges buyers a flat shipping rate of $7.97 on each order, whether it's a multi-item bundle order or a single item. This shipping rate is valid for any item or bundle weighing 5lbs or less, so planning ahead if you're selling heavier items is a good way to get ahead of the necessary shipping upgrades with your item price.

The best way to do this is to weigh your items ahead of time, and add the weight of packing and shipping materials to their total weight. If an item goes over the 5lbs mark, add the necessary shipping upgrade cost to the price of the item to recoup the higher shipping fees.

Poshmark refund policy

Understanding Poshmark's Refund Policy

Poshmark is primarily a secondhand selling platform, which means that its approach to returns and refunds is different from more traditional online retail marketplaces like Amazon or eBay. In general, buyers on Poshmark are not able to request returns for their items, except in very specific circumstances. Below, we'll discuss when a buyer can request a return for a refund, how returns and refunds affect your Poshmark selling fees, and how to handle returns and refunds on Poshmark if you ever do find yourself having to accept an item back for a refund.  

When Can a Buyer Request a Refund?

On Poshmark, whenever a buyer purchases an item from your closet, you'll have 7 days to send the item out using the prepaid shipping label provided by Poshmark. Once the buyer receives the order, they have three days to either request to return the order for a refund or accept the order and mark it as complete. After three days, if the buyer has taken no action, the order is marked as complete automatically, which means that the buyer has accepted the order and the transaction is complete. Whether the order is completed by the buyer or automatically, once it's complete Poshmark will release the funds from the transaction to you, minus the Poshmark fees for selling. Since the buyer can only request a return for a refund before accepting the order, you yourself will never actually have to issue a refund to the buyer – the transaction will simply be reversed, the item returned, and the funds will never be transferred to you.

Buyers can request refunds for a limited number of specific reasons, and they must provide proof of their claims to Poshmark in order to get their return request approved. Buyers can request a refund in cases where the item they received is not as described in the listing (e.g. certain flaws were not disclosed or the item sent is different than the one listed), but not for fit issues, buyer's remorse, or due to delivery delays. If Poshmark approves the buyer's return, the sale is essentially cancelled, and your earnings for that sale are never transferred to you because the sale was never completed.

For unshipped orders, buyers have 3 hours to request a cancellation and refund.

How Refunds Affect Poshmark Fees

Since transactions that are refunded are never completed, making them essentially reversed transactions, you won't receive your earnings and you won't be liable for any selling fees. This means that the selling fee that Poshmark typically charges (20% for sales of $15 or more, or $2.95 for sales under $15) is also reversed, and is not charged because the sale was never completed. Put simply, you will not incur any fees for a transaction once the return is completed and the refund is processed by Poshmark.

How to Handle Refunds on Poshmark

As a seller on Poshmark, you will not need to handle refunds on Poshmark yourself. The entire returns process – from return approval to issuing a refund – is handled by Poshmark. The buyer's return request is either accepted or denied by Poshmark at their discretion, with Poshmark providing the buyer with a prepaid shipping label, tracking the progress of the return shipment, and issuing a refund to the buyer once the return has been sent out. In certain cases, they may even choose to complete the transaction despite the buyer's return for a refund, and issue both a refund to the buyer and release the earnings from the transaction to you. Ultimately, unless you'd like to contest an approved return request, there is nothing you need to do on Poshmark in terms of handling returns – everything is managed, monitored, and handled by Poshmark themselves.

Last updated on:
June 13, 2024
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