Poshmark is an online marketplace where people can buy and sell new or used clothing, shoes, accessories, and home goods. It has grown in popularity over the past few years as a way for people to make extra money by cleaning out their closets and selling items they no longer wear. However, as with any online selling platform, there are some downsides to be aware of when using Poshmark.
It can be time consuming
Listing and managing items for sale on Poshmark does require a time investment. Sellers need to photograph and measure each item, write descriptions, set prices, package and ship orders, and respond to customer questions and concerns. This can quickly add up, especially for those with a lot of inventory. It may not be worth the effort for occasional sellers or those with limited free time on their hands.
There are seller fees
Poshmark charges seller fees in order for sellers to use their platform and access their large base of buyers. The fee structure is $2.95 for items priced under $15, 20% of the listing price for items priced over $15 up to $500, and 2.9% + $0.30 for items over $500. On top of the Poshmark fee, sellers also need to consider the PayPal transaction fee of 2.9% + $0.30 and the cost of packaging materials and postage. While the fees allow access to Poshmark’s services, they do cut into profits.
No returns can mean dissatisfied buyers
Poshmark does not allow returns on items, except in cases of damage during shipping or if the item received does not match the listing description. This no returns policy aims to protect sellers from frivolous returns. However, it also means dissatisfied buyers have no recourse if an item doesn’t fit, match their style, or live up to expectations. Bad reviews over unreturnable purchases can damage a seller’s reputation.
Inventory storage can be problematic
Storing inventory while waiting for it to sell takes up space. For those selling out of their homes, keeping large quantities of inventory packed up in closets and rooms long term can become an issue. There are logistical considerations around storing so much excess stuff. Paying for offsite storage can eat into profits as well.
Probability of returns from scammers
While Poshmark aims to protect sellers from returns, there is still a chance of receiving fraudulent returns from dishonest buyers claiming items are damaged or not as described. Scammers know retailers often accept returns without much investigation to maintain positive customer relations. Sellers have to be willing to accept some losses from scammers abusing policies.
Shipping issues
As the seller, you are responsible for properly packaging and shipping items sold through Poshmark. This means you bear the costs when items become damaged or lost in transit due to inadequate packaging. Items that arrive late or get lost also tend to result in negative reviews. Finding the right packaging materials and mastering how to properly pack fragile and odd-shaped items takes some trial and error.
Handling customer service issues
Poshmark sellers are expected to provide good customer service to buyers. This includes answering pre-sale questions about sizing, fit, fabric content, measurements, availability, shipping time, packaging, refunds, returns, and more. Handling issues that come up with orders in a timely manner is also the seller’s responsibility. For some, continually communicating with customers and resolving issues can become a hassle.
Easy to underprice items
When sellers are new to Poshmark, they often underprice items without realizing it. If you price items too low, you miss out on profits. Underpricing can also leave money on the table when items sell very quickly. Researching proper pricing for the brands and styles you sell is important. Listing items efficiently while still maximizing profits takes some finesse. Monitoring what similar items sell for can help sellers adjust pricing appropriately.
Lots of competition
Poshmark has become very popular, which means lots of competition among sellers. There are typically many other sellers listing very similar items. It can be hard for your listings to stand out from the crowd. Having good photos, detailed descriptions, and enticing prices and shipping discounts helps attract buyers over the competition. But it does take extra effort and strategy to get sales when competing against so many other listings.
Maintaining inventory can be challenging
Poshmark makes it simple to list items, but that can lead to having too many listings. Keeping on top of what has sold, when new items need to be listed, removing stale inventory, and deleting sold listings takes organization. Forgetting to remove sold or expired listings reflects poorly on a seller’s store. Keeping inventory fresh, updated, and accurate takes diligence and a system for staying organized.
Risk of scammers and banned accounts
Scammers do operate on Poshmark, as they do on many online platforms. There is a risk of receiving fraudulent payments, hacked accounts, phishing attempts, and other cyber threats when selling online. Sellers also have to follow Poshmark’s rules closely or risk account suspension for infractions. Having your account banned for any reason can be disastrous. Protecting yourself and following all Poshmark’s terms takes vigilance.
Getting paid not always smooth
Poshmark aims to make payments between buyers and sellers smooth. However, delays and issues can happen. Sometimes payments remain pending longer than expected or need to be manually released by Poshmark. Payments to sellers can be delayed during disputes or after returns. There can also be payment processing problems or delays by PayPal or the seller’s bank. Having funds tied up or late payments creates headaches.
Need to self-fund shipping discounts
Most buyers expect discounted or free shipping when shopping online. Poshmark encourages sellers to offer shipping discounts to attract buyers. Providing $4.99 flat rate shipping or free shipping over $100 for example. To do this, sellers have to absorb shipping costs that exceed what buyers pay. The cost of shipping discounts comes directly out of profits.
Poshmark changes algorithms frequently
Poshmark frequently tweaks its search algorithms that decide what listings appear at the top of searches. These changes can impact search placement and sales for sellers. Listings that once ranked well and drove sales may suddenly drop with no warning. Trying to keep listings visible with shifting algorithms takes additional optimization efforts.
Hard to build independent brand
The Poshmark platform makes it difficult for sellers to build their own independent brand and loyal following. Buyers shop by item, not by seller. Seller names are not even displayed prominently in listings. Poshmark also discourages taking transactions off their platform. Building distinctive branding and driving targeted traffic to a separate website is restricted.
Returns and cases decided by Poshmark
Poshmark acts as the arbitrator for all return requests and cases opened between buyers and sellers. Even sellers who follow all the rules and provide great customer service can end up on the losing end of a case. Poshmark will side with the buyer in nearly all situations. Having no control over the dispute and resolution process is frustrating for sellers.
Getting paid not always smooth
Poshmark aims to make payments between buyers and sellers smooth. However, delays and issues can happen. Sometimes payments remain pending longer than expected or need to be manually released by Poshmark. Payments to sellers can be delayed during disputes or after returns. There can also be payment processing problems or delays by PayPal or the seller’s bank. Having funds tied up or late payments creates headaches.
Conclusion
Selling on Poshmark comes with several key downsides to know before diving in. The time investment, fees, shipping responsibilities, inventory considerations, competition, and customer service duties make it more involved than many realize. However, the large buyer base and possibility to earn extra income on closet cleanouts and unwanted purchases make it worthwhile for some. Being well informed on the cons of Poshmark selling allows sellers to go in with realistic expectations.