According to The Sun, Poshmark has decided to eliminate a surcharge it had only recently implemented after receiving significant backlash from its users. The fee was intended to benefit all platform users, but many felt it was ineffective.
Overview of the Surcharge
Poshmark, an online social marketplace where users buy and sell a variety of secondhand items, introduced this surcharge for new sellers to help balance costs between buyers and sellers. According to Manish Chandra, Poshmark’s founder and CEO, the 5.99% fee was applied to the order total for sellers, alongside additional charges for smaller transactions:
- $1 for orders under $15
- $2 for orders between $15 and $50
- $3 for orders of $50 or more
The surcharge took effect on October 3 for sellers in the United States, with plans for implementation in Canada.
Response to Feedback
Chandra acknowledged that the surcharge had the opposite effect of its intention, leading to decreased spending by customers. In response to the negative feedback from sellers, Poshmark will remove the surcharge as of October 24. He expressed regret for the disruption caused, stating, “The outcome of the change did not meet our expectations, and I sincerely apologize for the disruption and impact this has had on you.” The fees will revert to a standard 20% of the order total for sales over $15, and $2.95 for orders under $15.
Additional Program Changes
This is the second recent initiative Poshmark has scrapped. The company is also discontinuing its “Posh Pass” pilot program, which aimed to benefit highly active sellers, known as Posh Ambassadors, by offering free shipping through the end of 2024. It’s uncertain whether Posh Ambassadors would have faced monthly membership fees for this benefit in 2025.
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Buyer Protection Update
In addition to the surcharge, Poshmark will be eliminating an updated buyer protection fee that had increased alongside item prices. The platform will revert to its previous “Posh Protect” policy, which offers a full refund in certain situations at no extra cost to buyers.
Chandra noted that both the surcharge and the updated buyer protection fee were removed as Poshmark continues to explore future programs that will better serve its community.
Industry-Wide Trends
Poshmark is not alone in rolling back recently implemented fees in response to customer feedback. Stop & Shop has announced that customers at its 25 Rhode Island locations will no longer need to pay a 10-cent fee for paper bags, effective immediately. The retailer emphasized that this change aims to make groceries more affordable for residents.
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