At the beginning of October, we saw the introduction of Poshmark buyer fees that mirrored the seller fee structure of a $1, $2, or $3 fixed fee plus 5.99% fee based on the order total. The reaction from buyers and sellers alike wasn’t very receptive and the marketplace has now rolled back the change and on the 24th of October reverted to their original fee structure.
The comments when the news broke on ChannelX pretty much summed up the reaction across the entire marketplace – universal dislike and the result was that shoppers spent less on purchases as they shifted their spending from orders to fees, leaving Poshmark sellers with less cash in their pockets.
One of our core values is Together we Grow, and every decision we make is guided by our deep commitment to you, our community. In this spirit, we have decided to revert to our original fee structure effective October 24, 2024.
– Manish Chandra, Founder & CEO, Poshmark
Steps to remove Poshmark buyer fees include:
- Reverting to the original seller fee structure: Effective October 24, 2024, Poshmark returned to the original fee structure of 20% seller fee for sales over $15 and $2.95 for sales $15 and under.
- Removing the Buyer Protection Fee: Shoppers will still receive the same trusted protection through Posh Protect without any extra cost at checkout.
- Ending Posh Pass Beta: Poshmark introduced this program to help boost purchases with the new buyer fee structure. With the return to the original fee structure, this program will also be rolled back. Poshmark will continue to explore similar programs that will benefit their community in the future.
- A rebate: To give you time to adapt your listings and pricing strategies, Poshmark are issuing a rebate for the difference in seller fees on listings created or edited during the fee change period and sold via Buy Now, from October 24, 2024, through the weekend until October 27, 2024.
While the Poshmark buyer fees shenanigans might have passed by many UK sellers (Poshmark is only available in the US), it’s interesting as eBay have announced that they will be introducing eBay buyer fees in the UK in early 2025.
We are also planning to introduce a buyer-facing fee in the UK in early 2025 alongside a set of buyer enhancements that provide additional value.
– Jamie Iannone
Quite what the reaction will be when eBay introduce buyer fees is hard to measure, but it may depend on how they are implemented. If the fee is an add on at checkout, it will likely create a ton of friction. Unlike in the US where buyers are accustomed to additional charges online and in physical retail (Sales Tax), in the UK the price you see is the price you pay with no taxes added when you come to pay. The only common exception is physical auction houses which usually have a buyer fee.
Our preference, which admittedly will be harder to implement, would be for eBay to display selling prices to include any eBay Buyer fee with an * saying ‘Including buyer fee’. That way when shopping buyers would still see the price they’ll pay at checkout.
