Shortly after social marketplace Poshmark announced it was lowering selling fees and increasing fees for buyers, the company decided to revert to its original pricing structure following anger from sellers.
In an email sent to merchants on Monday and seen by TechCrunch, founder and CEO Manish Chandra apologized for the fee change, saying it would result in shoppers spending less on purchases and “sellers' There's less cash left in their pockets — despite that.” Reduced sales commissions. ”
Chandra added: “The results of the changes did not meet our expectations. We sincerely apologize for the confusion and impact this has caused.”
Earlier this month, Poshmark introduced a new fee structure to replace its original 20% seller fee. The new system included a “protection fee” of 5.99% for sellers and 5.99% for buyers. In addition, both buyers and sellers had to pay an additional $1, $2, or $3 based on the order total. For example, orders under $15 will be charged a $1 fee, orders between $15 and $50 will be charged a $2 fee, and orders over $50 will be charged a $3 fee. Buyer remains responsible for shipping charges.
Many sellers took to Reddit to express their disappointment with the new system, saying they saw a significant drop in sales, likely because customers saw the new fees and abandoned purchases. One Redditor said he used to make “12 to 15 sales” a week, but now it's less than five.
Poshmark isn't the first reselling platform to face this kind of backlash. In March, Mercari completely eliminated seller fees and began charging buyers a service fee for “hassle-free returns.” Naturally, people were unhappy, and Mercari rescinded some of its policies just two months later.
Poshmark's unique pricing structure goes into effect this Thursday, October 24th. Merchants will also receive a rebate on the difference in seller fees for products created or edited during the rate change period (October 3 to October 23) and sold from October 24 to October 27. will be issued. .