Poshmark swapped its 20% seller fee for buyer fees, then reversed within three weeks

On 3 October 2024 Poshmark replaced its flat 20% seller fee with a 5.99% seller fee, a 5.99% buyer 'protection fee', and an extra $1, $2 or $3 charged to both buyers and sellers depending on order size: $1 under $15, $2 from $15 to $50, and $3 above $50. Buyers still paid shipping.

Sellers complained on Reddit that sales had dropped sharply, possibly because customers abandoned purchases after seeing the new fee. One said they used to make 12–15 sales a week and were now making fewer than five. On 21 October, TechCrunch reported, CEO Manish Chandra emailed sellers an apology, saying the change meant shoppers spent less, 'leaving our sellers with less cash in their pockets—despite the seller fee reduction', and that the outcome 'did not meet our expectations'.

The original fee structure came back on 24 October. Poshmark also issued sellers a rebate for the difference in seller fees on listings created or edited between 3 and 23 October and sold from 24 to 27 October. TechCrunch noted that Mercari had run into a similar backlash in March, when it removed seller fees and charged buyers a service fee, and reversed part of the policy after two months.

The new structure added a percentage buyer fee plus a flat fee at checkout, so buyers saw a higher final price even though sellers paid less commission.

Shoppers spent less after the change, according to Chandra's own email, so sellers earned less despite the lower seller fee.

Sellers on Reddit said their weekly sales fell within days of the change.

Mercari's earlier reversal showed that moving fees from sellers to buyers on a resale marketplace could backfire.

Shifting a fee from seller to buyer doesn't make a marketplace cheaper if buyers abandon carts at checkout. Test fee changes before rolling them out to everyone.

The old 20% seller fee returned on 24 October 2024, and Poshmark offered rebates for the transition period. Chandra apologised to sellers for the disruption in an email TechCrunch viewed.