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Re:

Poshmark Reversed Its 2024 Fee Cut After Sellers Reported Lower Sales

Poshmark restored its previous U.S. seller-fee structure on October 24, 2024, after sellers reported weaker sales and the company said shoppers were spending less.
From TheFinanceBase Team3 min to read
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Poshmark restored its previous U.S. selling-fee structure on October 24, 2024, after a short-lived fee overhaul added charges for buyers as well as sellers. Sellers had reported weaker sales, and Poshmark said shoppers were spending less under the new arrangement. Those reports do not establish a platform-wide sales decline or prove the fee change caused any individual seller’s results.

What changed, and when?

Poshmark’s U.S. fee overhaul took effect on October 3, 2024. On October 21, founder and CEO Manish Chandra announced the company would reverse it, with the previous fee structure returning on October 24.

Date U.S. policy or event
October 3, 2024 The temporary fee structure took effect.
October 21, 2024 Poshmark announced the reversal.
October 24, 2024 The previous seller fees returned and the Buyer Protection Fee was removed.

TechCrunch reported that the temporary arrangement charged sellers a 5.99% fee and buyers a 5.99% Buyer Protection Fee, plus a flat fee of $1, $2, or $3, depending on the order amount, to each side. The lower percentage charged to sellers therefore did not mean buyers faced lower checkout costs. TechCrunch’s October 2024 report described the change and the reversal.

Why did Poshmark reverse the change?

Poshmark’s explanation, as reported by TechCrunch from an email by Chandra, was that shoppers spent less under the new structure, leaving sellers with less cash despite the lower seller fee. Chandra wrote: “The outcome of the change did not meet our expectations, and I sincerely apologize for the disruption and impact that this has had on you.”

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That is the company’s stated explanation, not an independently established causal finding. TechCrunch also quoted sellers describing weaker results; one seller said weekly sales had fallen from 12–15 to fewer than five. Such accounts convey individual experiences, but the reviewed sources do not provide platform-wide sales data or a controlled comparison showing how much, if at all, the fee change drove sales down.

What are Poshmark’s U.S. seller fees now?

Poshmark’s Legal Center currently states that listing is free. For a U.S. sale under $15, the fee is $2.95; for a sale of $15 and above, it is 20% of the sale price. At the 20% tier, the seller retains 80% before other applicable adjustments. The Buyer Protection Fee was removed when the prior structure returned on October 24, 2024. Poshmark’s Legal Center says estimated earnings are shown during listing creation and actual earnings can vary with the final order price, seller discounts, fees, taxes, and other adjustments.

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These terms are for the U.S. marketplace. Sellers in Canada or other markets should check their local terms rather than assume the same fees apply.

Was there a rebate for sellers?

Poshmark offered a limited rebate covering the seller-fee difference on qualifying listings created or edited during the temporary change period and sold through Buy Now from October 24 through October 27, 2024, according to TechCrunch. It was a time-limited offer tied to those conditions, not a continuing fee policy.

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What sellers can take from the reversal

The episode illustrates why comparing marketplace fees by the seller percentage alone can be misleading. A fee schedule also changes what buyers pay at checkout, which may affect how much they are willing to spend. For a practical comparison across platforms, look at both the buyer’s total checkout cost and the seller’s net proceeds at realistic sale prices, along with shipping charges and the applicable protection or return terms.

For sellers reviewing a particular Poshmark order, use the earnings estimate shown while creating a listing, then check the actual order details: final price, discounts, fees, taxes, and other adjustments can change the net amount.

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