If you’re a Poshmark seller or want to become one, you need to consider how much selling on the platform will cost. Then, you’ll be able to plan ahead and come up with a fair price for every item you list in your closet.
Whether you started selling recently or a long time ago, the fees can make a huge difference to your income potential, especially if you make it your full-time job.
To help make your Poshmark business a success, you need a good strategy. Part of that strategy includes setting the correct prices so you can invest back into your business and sell on Poshmark more.
Read on to learn more about selling on Poshmark.
Overview of Poshmark Selling Fees
When selling items on a platform like Poshmark, you need to consider how much it will cost you. Selling clothing and other products on Poshmark can be a great way to make money, and you can access a lot more potential customers than using your own site.
You don’t have to worry about promotion for your own listings or managing shipping, but you do need to pay a Poshmark fee for each transaction.
Consider the fee structure and how you can use that to increase your profits.
Flat Rate Commission
Whenever you sell items for less than $15, Poshmark takes a flat fee of $2.95. As the seller, it’s your responsibility to pay this fee, so consider that when setting the price for a sale.
Now, if you offer a discount on a more expensive item, the discount may bring it down to $15 or less, even if the listed price was higher. This lower cost can help you get more sales, but you will still need to factor in the cost of those platform fees before you sell on Poshmark.
Poshmark takes 20% off the orders that total more than $15, so consider that fee structure when setting prices. If you have higher-end items, most of your orders will qualify for this commission rate.
Your actual earnings will include the remaining 80% each time you sell something when the order is big enough. This policy applies to both individual items and Poshmark bundles.
Make sure to account for this before applying discounts for individuals or changing the listing itself. That way, you can make enough money from your business.
What Those Fees Cover
While the fees may seem like a disadvantage, they are worth it when selling on Poshmark. They offer a lot of benefits that other platforms don’t always provide. For one, the fees help cover the shipping rate for packages weighing up to five pounds.
You simply access the prepaid shipping label from your email or seller account. Whenever you make a sale, you can download and print the label for shipping without worrying about calculating the cost of shipping.
Fortunately, new sellers also don’t have to charge or pay sales tax, making it easier for them to start selling on Poshmark.
How to Set Your Prices
Whether you’re looking to sell your first item or hundredth item, the price is critical. Like other platforms, selling on Poshmark requires you to compete with sellers who have that same item in their closet.
Of course, you can stand out by offering free shipping, discounts, or sales. However, just like we mentioned with the fees above, you should consider how much to charge for an item to ensure you’re making a profit selling online.
Consider the Regular Price
First, you should think about how much the company who made the item charged for it when it’s new. The original price will probably be much higher than when selling on Poshmark. Whether you’re selling clothes or decor, you need to charge the right – and fair – amount.
Now, you can stand out and offer a cheaper price compared to different sellers. But you don’t want to price the item too low and devalue it, especially if it’s a genuine designer item. You need to make sure your listing can stand out from fake items.
Compare That to the Condition
Once you figure out how much the item costs when it’s new, you should examine its current condition. Consider if there are any apparent flaws, such as stains or tears. Use that information to come up with a fair listing price for the product.
Selling on Poshmark is excellent, but you can’t charge top prices for new items. Even if you get a product that’s new with tags (NWT), you should still offer some sort of discount. That way, you can move the item quickly out of your inventory and into the hands of its new owner.
Think About What You Spent
Whether you get items through liquidation, thrifting, or another method, you should consider your cost of goods. Even if selling on Poshmark is a hobby or a side hustle, making a profit is a priority.
So, let’s say you have an item that costs $40 new, but you got it at a thrift store for $10. Ideally, your price should be over $10 so you are making a profit, but less than $40 since it is not brand new. How close your selling cost is to the original price is up to you and the item’s current condition.
Research Other Poshmark Sellers
To get an idea of fair yet profitable prices, look for other sellers who offer the same items or popular brands as you. Go to their Poshmark closet and browse the prices. Be sure to consider if they’re selling knock-offs, and weigh the price accordingly.
Then, you can determine if you can make good money on an item. If you find a similar item to yours that has sold, you can figure out how much the seller actually earned with that product. With that information, you’ll be able to predict how much you’ll make after shipping it off to a buyer.
View the Likers
Whenever you come across an item in someone’s closet that you have, look at who liked that listed item. You can view the price and see how many potential customers you may have after listing the same thing.
How many likes someone else’s item receives can be a massive help to you. If an item has very few likes, selling something similar may be more difficult.
On the other hand, if an item has a lot of likes but still isn’t selling, there may be a problem with that listing. Perhaps the price is too high, or the quality is not good. However, you know that people like that product, so selling something similar at a slightly lower price may be a good option.
Decide How Fast You Want to Sell
If you want to get something out of your Poshmark closet, that can affect your pricing strategy. You might decide to lower the shipping rate for the customer, or you might decrease the cost overall.
Of course, you should also consistently share your items. Then, they will show up at the top of the Poshmark search. That will help you get more eyes on the listing, and someone may purchase it sooner. In this case, you don’t have to lower the price too much or offer free shipping to sell it quickly.
On the other hand, charge more if you don’t mind keeping the item for a while. Eventually, you may find someone willing to spend that much.
Consider the Season
Another thing to consider is the current season and the items in your closet. For example, if you sell clothes, you may want to list those items during or before the proper season. For example, you may be able to list shorts in the fall, but they may not sell quickly.
However, you could get a leg up on other sellers by listing things a bit earlier. Maybe you decide to post a pair of shorts in January. You can charge a decent amount since your fellow sellers may not have the same item during the winter.
Account for Listing Price Discounts
Another excellent thing to consider when pricing on Poshmark is discounting. Potential buyers love to see a discount – so much so that you may need to include a discount for things to sell. Keep in mind that you may not always get the listing price as your final retail price due to potential discounts.
As such, consider future discounts when you set the initial cost. Allow for some wiggle room, ensuring you still make a profit even with a discount.
Consider a few of the following ways to offer discounts.
Offers to Likers
When people like your items, you can send an offer to each person. This trick is fantastic for you as a Poshmark seller because you can send offers more quickly. Offers to Likers requires you to drop the cost by at least 10% and give discount shipping.
Whether you’re selling used clothing or other items, you can use this feature to make sales. If an item sells from that offer, you’ll get to ship it out. Plus, if you listed the original price high enough, you’ll still make a profit even with the discount.
You can also offer discounts to potential buyers through Poshmark bundles. If someone likes your item, you can add it to their bundle and send them a specific discount. You can also choose to offer free shipping along with a discounted price.
Bundles are great when people like multiple items in your closet. The feature lets you customize the discount to that person, so you can start selling even without a ton of likes on an item.
Closet Clearout Sales
Poshmark will occasionally offer closet clearout days when you can drop the price on an item, and the deal will last for six hours. People can then choose to accept the offer and buy the item immediately.
These sales are also nice for many sellers because Poshmark will cover any shipping discount you offer. So you can attract a lot more offers and increase your sales. However, you should make sure someone is interested before you drop the price because you can’t raise it back up.
Don’t Forget the Shipping Cost
Along with the list price, a seller can offer a shipping discount. Selling discounted shipping to prospective customers may help you increase sales. Especially with other sites that offer free shipping, you want to compete and stand out.
Be sure to consider the shipping cost on your end before setting a price. Then, you’ll have room to offer discounted shipping with something like Offers to Likers. Plus, you won’t have to worry about that shipping rate eating into your profits.
Offer Cheap Shipping
Another way to attract potential buyers when you sell on Poshmark is to offer cheap shipping. You can charge customers for the shipping, but there are different prices you can set. And you can even provide free shipping if you have trouble getting offers.
If your fellow sellers have the same item but charge for shipping, you can stand out. So even if the final sale price isn’t that different from what it would be if someone else sold it, some buyers may want to shop from you due to the lower shipping costs.
Rates and Supplies
After someone buys something from your closet, Poshmark will send you a shipping label. However, you need to think about the other costs associated with that. Make sure you have a good printer that works and that you have plenty of ink and paper.
While the post office has them for free, you may also need to pay for shipping supplies like poly mailers, boxes, and packing tape. If you sell breakable items, like decor, you’ll also want a way to package those safely.
Be sure to consider how much all of those supplies cost. Add up the total and divide it by the number of items you expect they will work for. Then, you can figure out how much you’ll need to charge to make up that cost.
Selling Online Done Right
Selling online on a platform like Poshmark can be a great way to make all of your money as long as you account for Poshmark fees. But whether you’re a new seller or have experience, be sure to consider hiring a Poshmark virtual assistant to help with pricing and other tasks so you can focus on selling and making a profit.