Hey there! This week I’m going to expand on my Poshmark experience after showcasing my cash transfers in my First Steps of my Journey post! I provided some quick & easy ways to get started but now I want to really dive in deep with this review of exactly how realistic the cash transfers are! So is Poshmark a scam? Can you make some real money off this app?
You can scroll down to grab my final verdict too!
Price: It’s 100% free to set up an account. Poshmark takes 20% of all sales. Sellers can also offer discounts on shipping to buyers which can eat into profits.
Owner & CEO: Manish Chandra
Headquarters: Redwood City, CA
Overall rank: 9 OUT OF 10
Are one of those people that usually keeps a bag of donation clothes in your trunk for a weeks before actually getting rid of them? Have a ton of purses, shoes, necklaces or sweaters that you’ve never worn? Want to empty out under your bed but it’s too scary to get rid of stuff?
Poshmark makes it easier by providing the opportunity to sell your new, gently used or all together just used, products! This wonderful app is a buying & selling platform for everything fashion, from high ticket Dolce & Gabbana boots to Target tee shirts. The site is like Ebay & Craigslist in that it connects buyers & sellers for a fee but Poshmark emphasis the marketplaces it will allow sellers to work in.
You can usually find ENORMOUS discounts on the site & negotiate prices even lower! Want a Michael Kors bag? Poshmark may be your best bet.
Wana shop my closet? Check it out here: https://poshmark.com/closet/lizbit77
The Good, the Bad, the Ugly
- Easy to list products
- Shipping is handled by Poshmark
- Large community for support
- Negotiating is made easy
- High fee of up to 20% – that is a big chunk!
- Buyers can leave negative reviews
- A lot of competition
- You have to put in work by Sharing & Following
- Too Easy to Buy – When you sell items, the money you accrue is put into your balance. The trick is NOT TO SHOP! Poshmark makes it very easy (a little too easy) to buy once you have a balance on your account as they simple deduct the sale. You don’t even see the money leaving because it was never put into your checking account! I highly recommend that after each sale, you redeem your balance by transferring it to your checking account. Don’t let yourself be tempted here!
Check out the purchases I made just because I could! And because those heels were aaaaamazing on our honeymoon!
You wana make that money honey, not spend it!
- Small Sales Stink – There are also small ticket items which you can sell but won’t feel much in your bank account. I try to never get below $8.00 when lowering the price since it isn’t enough to pay for my time on the particular item once fees are taken out. Now I do have small sized items including unopened makeup & trinket dishes which are almost effortless to ship but I still try to stay above my threshold. Check out the Travel Wallet sale below. After lowering to $8.00 AND providing a discount on shipping, I only walked away with $3.25. Not a huge sale but at least it was 1 more thing out of my house!
A small sale but at least it’s something!
- Posh Parties – These are presented everyday by Poshmark & enable sellers to list products in a “Party” which meets their products. These include Sephora Makeup, Nike Apparel, Plus-Size, Petite, Designer-footwear, and the list goes on. Although these are a great way to be exposed to new buyers, if you get caught browsing than all of a sudden its an hour later & you have 5 things in your cart! Parties are a great way to get your listings in front of new eyes but don’t be tricked into shopping them! Once you set up your account, you’ll receives invites to these Posh Parties in your News feed just like below.
Daily Posh Party invitations!
- My Likes – As you browse through Poshmarks different Marketplaces & departments, you may find an item that attract your eye & decide to Like it. This is great for being social & letting other buyers know that a product on their closet could be popular! But you’ve also just opened a Pandora’s Box of offers! When you click on the tiny heart on a product, it will be added to your Likes section & the seller will be notified. The seller will then send you offers & try to get you to buy the item. Now you don’t neeeeed to make the purchase but it does become slightly irritating to be constantly receiving notifications of offers. So my rule of thumb has become: Don’t Like it unless I’m ready to buy it!
As a seller, you can use this to your advantage! When someone likes your product, you can offer discounts on the price + on shipping. You can also do something called a Bundle & offer them a group of your products for an additional discount. This is helpful when someone likes several of your items!
If you Like it, better be ready to buy it!
Who is it for?
If your a minimalist, this most likely isn’t the site for you. As I stated above, this is for anyone who has items they would like to sell. If you have bags of clothes to donate or just want to refresh your closet, Poshmark makes it simple to list & get rid of! The app is very user friendly and there is a desktop web-based sign-in as well. Anyone can set up an account and start listing very quickly!
Tools & Training
Poshmark provides somewhat limited training but the site is easy to navigate & listings are created in a linear fashion, step by step. There is also a Support Center that is searchable for articles, a Blog and a very active community. Although there is no means of asking questios to this community, you can comment on listing to make any inquires. You can also email customer support at Hello@poshmark.com. At this time, they don’t offer a chat bot for asking questions immediately nor, very stealthily, a phone number.
Money Honey! What’s the price?
Technically to sign up for an account is absolutely free! If it’s for free, it’s for me! Unfortunately Poshmark does take a large chunk out of your sales. If the sale in under $15.00, than there is a flat fee of $2.95. Anything larger than $15.00 means a 20% fee. Ouch!
You will also be required to pay sales tax which are determined by the state in which the item is sold. Poshmark automatically calculates, collects & submits these taxes for you as well. That’s a nice plus!
Shipping costs are always paid by the buyer. Now as a seller, you can offer either a discount or free shipping but keep in mind these costs will be deducted from your earnings. The flat fee for shipping is $6.79 for 1-3 day USPS. If you have a product that is heavier than 5lbs, you’ll need to upgrade your shipping label & will incur an extra fee. Its simple to do through the app & Poshmark still emails you the label. Super easy!
↓ Below are two examples of my sales ↓
I listed a ring & earring set for $20.00. Someone liked it so I sent them an offer of $15.00 which they happily accepted. Yay! Once the offer is accepted, Poshmark emails me a shipping label to send the product off. Once the buyer receives & reviews the item, Poshmark put the earnings into my balance! It’s honestly that easy.
Here’s another sale I made on a slightly more expensive item. It had originally listed this Betsey Johnson necklace at $40 but negotiated $30 + a shipping discount with the buyer. Poshmark subtracted the fee and the shipping discount from the price. It’s nice to not have to do the math or work any of the shipping out. It’s all done through the app!
This sale included a discount on shipping to the buyer. Worth it!
Price: It’s 100% free to set up an account. Poshmark charges $2.95 for sales under $15.00 & 20% for anything over that.
Overall rank: 9 out of 10 due to high Poshmark fee but I’ve gotten rid of a lot of stuff that was just taking up room!
Verdict: Worth signing up for if you’d like to declutter & make some cash. Below are my transfer so far in only 5 months!