In recent months, I've reported that marketplaces including eBay U.K., Mercari, Poshmark, Depop, and Delcampe have shifted fees from sellers to buyers.
And last week I reported (story #5) that some of those companies are beginning to realize the error of their ways, including Mercari which is currently testing adding buyer fees back into the item price.
I also noted last week that Poshmark was rethinking its new fee structure as well, but it wasn't clear at the time whether it would revert back to its old structure or make a revision to its new buyer fees instead.
Flash forward one week…
Poshmark officially reverted back to its original fee structure, effective Oct 24, 2024.
The company wrote in its press release, “We made the recent fee change with the goal of helping you, our sellers, grow and earn more by balancing fees between sellers and shoppers. However, over the past few weeks we have seen that shoppers spent less on purchases as they shifted their spending from orders to fees, leaving our sellers with less cash in their pockets—despite the seller fee reduction.”
Kudos to Poshmark for its decisive action! Granted, it never should have made the switch in the first place, but at least they didn't double down on the mistake.
The company also wrote in its press release, “We’ve spoken with many of you and listened closely to your feedback. The outcome of the change did not meet our expectations and I sincerely apologize for the disruption and impact that this has had on you.”
I'm just wondering where that listening was prior to the change? Let this be a lesson to all marketplaces moving forward: Your sellers are willing to provide you feedback ahead of changes. You've just got to ask!
Poshmark will be returning to its original fee structure of 20% seller fee on sales over $15 and $2.95 for sales $15 and under.