If you are reading this, chances are you’ve read a few stories about people making money from Poshmark and thought about doing the same thing. But, is selling on Poshmark worth it? This review might make you think twice.
What Is Poshmark?
When Poshmark was first established in 2012, it was meant to be a second-hand marketplace to trade women’s clothing in the US. Now, the platform has expanded to selling men’s, children’s clothing and home products from all types of brands. So the selection of items is no longer just limited to your closet.
This site is widely visited by female users and fashion shoppers who are tech-savvy consumers. To get started, you just need to download the app onto your phone and proceed to create a free account.
Every seller gets to have their own boutique, which is just another fancy name for a storefront. When listing an item, you simply upload the pictures from your phone, set the pricing and description and you’re pretty much ready to sell.
When someone places an order from your store, you get a free shipping label from Poshmark to put on your package. This label comes with a tracking system so should your package get lost during transit, you’ll be fully covered.
Buyers generally have 3 days to confirm the purchase before payment is made to you. As part of the payout agreement, Poshmark takes a $2.95 commission on all sales under $15 and a 20% commission on any sales above $15. So that’s something you need to know.
If you prefer to jump straight to the point, here’s a video review from a seller, explaining the pros and cons of selling on Poshmark
How Much Can You Make on Poshmark?
Well, it depends on how you utilize the app. A casual user may make a few extra dollars while the serious entrepreneurial ones could make up to a few thousand dollars. These numbers aren’t the majority, but they do exist and those are probably the stories that attracted you to the app in the first place.
But their success didn’t just happen overnight. If you read closely, you’ll find that they have been doing this for years, probably 2 to 3 years or more. These times are spent taking good photos, researching fashion trends, comparing prices, and even scouring the thrift stores for stocks and see what they can flip for higher selling prices.
They are also very active on the app, participate in virtual parties, and are quick to respond to customers’ problems. They literally work on it day and night, treating it as a full-time online business almost and keeping a close tab on all their activities.
That’s how they come to achieve those envious figures. It’s fair to say that if you follow their tips, there’s a good chance you could have the same kind of results.
The Challenges for Poshmark Sellers Ahead
But we all know that opportunities aren’t created equal and the reality of selling with Poshmark isn’t as simple as the app itself. Before you get too carried away, it’s important to be aware of these downsides.
1 – Crowded Marketplace – 8 years since its inception, the site currently has about 25 million items and 4 million sellers. And guess what? The number is growing by the day. Shoppers love varieties but those numbers are tough competition to break into.
The marketplace is basically a listing site and as new items come along, older items just get pushed down. There’s no specific feature to boost listings – even if they do, you’ll need to pay for it – unless you make some changes such as sharing the item or drop the price, which presumably could shake up your listing for a moment.
2 – Profit Sharing – Poshmark’s take can cut into your profit over a long time, whether you are selling below or above $15. Selling at higher prices generally makes more money, but let’s face it, giving away $20 when something sells for $100, for example, can be very painful to the pocket.
Some experienced sellers reckon that you are better off selling on eBay, ThredUp or maybe better, create an online store under your own brand name. This is something you should consider if you have a lot of stuff to sell and want to make the most out of them.
3 – Buyer Biased – There’re plenty of complaints that Poshmark often sides the buyers when something goes wrong with the sale. Some cases will force you to do a refund even when there’s nothing wrong with the item.
That really sucks because you know the buyers just want their money back but the company will not hear your case about it. Doesn’t seem like a fair treatment to me, especially if the sale has been made upon mutual understanding.
4 – Lowballers – You can find these people everywhere on marketplaces and it’s no different in Poshmark. They aren’t the nicest to deal with because they don’t bother reading through the offer and will haggle until you give them the price they want. You’d probably find them a waste of time too.
Is Selling on Poshmark Worth It?
Yes, it is if you’re into selling and flipping clothing. Just remember that it takes time and smart planning to make a significant amount of earning so you need to be very patient with the process. While it doesn’t cost you anything to get started, you shouldn’t depend on it 100% to pay your bills or rent.
However, selling on Poshmark may not be the best choice if you struggle to sell your stuff, get treated unfairly by the company or prefer to keep all the profit to yourself. In these cases, you should certainly look into other platforms or establish an independant brand for yourself.
Anyways, I hope this review has proven valuable in helping you decide whether Poshmark is worth your time or not. If you are interested in other ways of making money, check out how I use this platform to create an online business that pays me consistent income every month.