POSHMARK has axed an added surcharge after introducing it only weeks ago.
The fee was intended to benefit all who used the platform, but some didn’t feel that was happening.
Poshmark has eliminated a surcharge it introduced earlier this month[/caption]
Sellers and buyers will see the return of the old fees (stock image)[/caption]
Poshmark is an online social marketplace where users can buy and sell a range of secondhand homeware, electronics, and fashion.
It recently implemented the surcharge for new sellers, intending to balance costs on the site “between buyers and sellers,” per a letter from Manish Chandra, Poshmark founder and CEO.
On October 3, United States sellers were affected, and it was set for implementation in Canada.
A 5.99% fee was charged for an order total to sellers, plus an additional one dollar for orders under $15, two dollars for orders between $15 and $50, and three dollars for orders $50 or more.
Chandra explained that the company had received negative feedback from sellers and found that customers spent less on purchases due to the surcharge.
With the decision having the opposite effect of what was intended, it will be removed as of October 24, according to the CEO.
“The outcome of the change did not meet our expectations, and I sincerely apologize for the disruption and impact this has had on you,” he wrote.
The fees will revert to 20% of an order total charge for sales over $15 and only $2.95 for those less than $15.
PASS PULLED
It’s the second initiative Poshmark has scrapped recently.
The company is also eliminating the “Posh Pass” pilot program, designed for sellers who are highly active on the site, ship quickly, and make a minimum number of sales — otherwise known as Posh Ambassadors.
Poshmark typically covers $5.95 worth of shipping costs for sellers, but Posh Pass made it free for qualified candidates through the end of 2024.
It’s unclear if Posh Ambassadors would’ve had to pay monthly membership costs for the benefit in 2025 after the free period ended.
Posh Pass came in tandem with the surcharge.
BUYER BENEFIT
Additionally, an updated buyer protection fee that increased alongside the price of items is also being taken out.
The outcome of the change did not meet our expectations, and I sincerely apologize for the disruption and impact this has had on you.
Manish Chandra
Poshmark will instead be going back to its “Posh Protect” policy, which offers a full refund in certain situations but with no extra cost to them.
Both are being taken out as a result while Poshmark “continue[s] to explore similar programs that will benefit our community in the future,” per Chandra.
TAKE IT AWAY
Poshmark isn’t the only company eliminating surcharges recently after customer feedback.
Stop & Shop confirmed it would no longer have customers at its 25 stores in Rhode Island pay a 10-cent fee for paper bags, per a press release earlier this month.
The bags will again be free moving forward for residents.
The retailer emphasized that the move was made to help “make groceries more affordable.”
