Poshmark - statistics & facts
Going public with a valuation of over three billion U.S. dollars in 2021, Poshmark is popular social marketplace owned by Naver Corporation that hosts fashion listings worth billions of dollars from its users in the United States and Canada. With consumer-to-consumer (C2C) e-commerce becoming a popular option for those looking to sell their secondhand and vintage apparel, Poshmark’s streamlined user experience has resulted in millions of downloads of the app in its respective markets.
Besides the app’s social media-like features, Poshmark claims to have very simple and straightforward seller fees. The platform charges a flat commission fee of 2.95 U.S. dollars for all sales under 15 U.S. dollars, and for sales over that amount, takes a 20% commission fee. To make things easier for their millions of sellers, Poshmark also provides end-to-end services, including the handling of card processing fees, shipping label creation, and providing customer support.
Instead, the company intends on focusing on its dominance in Canada and the U.S., already investing in AI technology to create digital products like Posh Lens – a visual search feature for app users – and ultimately sticking to what they know best: creating the best possible social commerce user experience for C2C fashion fans.
Why sellers choose Poshmark
When it comes to C2C marketplaces, platforms must consider sellers a priority, as they subsequently attract buyers to drive traffic and transactions on the platform. As a social marketplace, Poshmark utilizes social commerce to its benefit, having created a community of sellers and buyers who can view and follow each other’s profiles, listings, and keep up with what’s being sold on their timelines. “Posh Parties” or scheduled live sessions where sellers can display their listings under specific categories, further enhance the social experience of the app.Besides the app’s social media-like features, Poshmark claims to have very simple and straightforward seller fees. The platform charges a flat commission fee of 2.95 U.S. dollars for all sales under 15 U.S. dollars, and for sales over that amount, takes a 20% commission fee. To make things easier for their millions of sellers, Poshmark also provides end-to-end services, including the handling of card processing fees, shipping label creation, and providing customer support.
Overseas operations come to a close
However, social features and straightforward fees have not been able to lead Poshmark to global success. The company, which expanded from its North American market to India and Australia in 2021, and the United Kingdom in January 2023, announced in October 2023 that they are closing international operations. In light of Poshmark’s declining international user base, this also comes as no surprise with recommerce marketplaces like Vinted and Depop already claiming the spotlight abroad. This decision to pull operations from overseas markets goes against Poshmark’s apparent goal of becoming a global player in online fashion recommerce that was specified following the company’s acquisition by Naver.Instead, the company intends on focusing on its dominance in Canada and the U.S., already investing in AI technology to create digital products like Posh Lens – a visual search feature for app users – and ultimately sticking to what they know best: creating the best possible social commerce user experience for C2C fashion fans.
