Poshmark is a popular platform for buying and selling fashion, accessories, and even home goods. It offers a convenient way to turn your gently used or new items into cash, but understanding the fee structure is crucial for maximizing your profits. Whether you’re a seasoned seller or just getting started, this guide will walk you through the various Poshmark fees and how they impact your selling experience.

Unlike eBay, Poshmark is free to list items. Once an item sells, items that have a sales price under $15 there is a flat fee of $2.95. For Sales over $15, Poshmark takes a 20% commission.

Examples.

1. You list a shirt for $25 and receive an offer of $14. You except the Offer, your expected earnings on the sale will be $11.05.  ($14-$2.95=$11.05)

2. You list a handbag for $125 and receive an offer of $100. You except the Offer, your expected earnings on the sale will be $80.  ($100×80%= $80 (100%-20%=80%) 

Shipping Cost is paid by the buyer unless you provide a discount.

Learn To Ship on Poshmark

In 2019 Poshmark began to take sales tax on all sales on the platform except in the following states Florida, Georgia, Hawaii, Illinois, Kansas, Missouri, Tennessee, and Utah.

Items which are taxable on Poshmark

Used Items

Boutique Items

Wholesale Items

The Sales tax is based on the buyer’s delivery address.

• Type of item purchased

• Buyer’s delivery address

• Seller’s return address 

• Shipping costs

Technically, Yes.

If you were to become audited by the IRS and they saw frequent deposits to your bank account from Poshmark and the income was not reported on your yearly tax returns you will be held accountable for the taxes on those profits. Failure to report income can lead to many headaches. In the case of an audit, the IRS would charge interest on the taxes owed.

The taxes which are taken on each sale are strictly Sales Taxes only.

Businesses normally take care of the collection and reporting to their respective states. Poshmark is doing that part for you.

If you’re mainly selling clothing items that are from your closet or were donated to you, you’re at the hobby level. As you grow your closet and begin to purchase items to make a profit on and you have a track record on a personal banking account such as purchasing items from your local goodwill the IRS will consider this a business and expect profits reported. We recommend keeping a spreadsheet and all receipts of your purchases.   

Poshmark allows its users to track sales and taxes on their My Sales Report. The sales report can be downloaded by visiting the settings drop-down on the upper right of your account and selecting My Sales. Midway down on the left side you will see My Sales Report.

Despite the fees, there are several strategies you can use to ensure that you still make a healthy profit on your sales:

1. Price Your Items Wisely: When listing an item, factor in Poshmark’s fees to set a price that covers your costs and desired profit margin. For instance, if you want to make $30 from a sale, price the item at $37.50 to account for the 20% commission.

2. Utilize Poshmark’s Promotional Tools:

   • Offer to Likers: This feature allows you to offer discounts to people who have liked your items, increasing the chances of a sale.

   • Closet Clear-Out: Participate in this event to offer discounted prices and bundle deals to encourage quick sales.

3. Bundle Discounts: Offering discounts on bundle purchases can help increase your average order value and offset the impact of Poshmark’s fees.

4. Monitor Your Sales and Adjust: Regularly review your sales performance and adjust your pricing strategy as needed. Keep track of which items sell well and which do not, and tweak your approach accordingly.

Happy Selling!

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Welcome to our blog!

Hello! We are Meghan and Ryan; we have been resellers for over 25 years. Our tips guarantee you will learn from our experience as sellers. We share our knowledge of building a full-time business throughout our blog post.

In 2019, we started Closet Assistant, which offers a series of automated tools for Poshmark sellers and resellers. The main components of Closet Assistant are its auto-sharer Poshmark Bot and Cross lister. The Poshmark share bot will share your closet and other Poshmark users’ closets with a single click. With our Poshmark bot, you will no longer need to spend countless hours a day sharing your closet. Spend more time where it counts in your Poshmark business! Unlike other services, Closet Assistant is run by a husband and wife team who are actually resellers on Poshmark. Try our auto closet sharer today for a free 7-day trial!