I’m humming Britney Spears because Poshmark has done it again! Just like clockwork, every year right after PoshFest, they hit us with a big change that no one asked for. And this year’s bombshell? It’s a real doozy. With Q4 holiday shopping around the corner and 2024 just peeking over the horizon, Poshmark’s new fee and shipping structure is shaking up the reselling world in ways that could make or break your sales strategy.

What’s the Big Change?

Brace yourselves. Poshmark is switching things up by offering a beta shipping model that sounds like a win but comes with a catch. While they’ve lowered seller fees, they’ve also introduced buyer fees—right when resellers are gearing up for the busiest shopping season of the year. Here’s the breakdown:

• Sellers used to pay a flat 20% on sales over $15 and $2.95 on anything below that. Now? You’ll pay $3 plus 5.99% on the total price (yep, that includes shipping and taxes) for anything over $50.
• Buyers, on the other hand, will enjoy $5.95 shipping through December. Sounds like a deal, but here’s the catch: this rate is temporary, and the real cost of shipping is still $7.95. Poshmark is eating that $2 difference for now—but they haven’t revealed what’s coming after the beta period ends. And you can bet it won’t stay cheap forever!

What This Means for Sellers

For luxury resellers, this fee change is actually pretty sweet. The new structure means lower fees for you, and we all know high-end buyers aren’t likely to balk at a few extra bucks. So, luxury sellers, keep calm and carry on—this change probably won’t hurt your bottom line.

But if you’re selling lower-priced items, buckle up. Buyers who were already hesitant about small purchases might be put off by higher shipping and added fees, meaning those quick flips on $15 items could slow down. This is where bundling becomes your secret weapon. With Poshmark’s 5-lb shipping cap, there’s real value in offering buyers the chance to bundle items and save on shipping. Create custom “style boxes” or bundle items by size or theme to make those added fees feel worth it!

The Buyer’s Perspective

From the buyer’s side, this fee shift might feel like a cold splash of reality. For casual shoppers or those hunting for deals, the extra charges will be a hard pill to swallow, especially for smaller purchases. The days of snagging a cute top for under $20 might be over if fees keep piling up. Expect buyers to start being choosier—looking for deals, bundles, or just fewer, bigger buys.

However, luxury buyers won’t flinch. If someone’s willing to drop big bucks on a high-end bag or shoes, a few extra dollars in shipping or fees won’t deter them. So, if you cater to the luxury crowd, you’re in the clear!

The Bigger Picture: Reselling in 2024

Now, let’s talk about the future. Poshmark’s fee shift could lead to renewed energy for a budding platform, The District, which is built for sellers by sellers who understand the challenges of the profession. Get creative with crosslisting and explore one other platform you are not familiar with such as Ebay, and Curtsy. With the economy the way it is, price-sensitive buyers will gravitate toward platforms that offer the best deals, and sellers need to adapt.

Opportunity in the Chaos

While these changes feel disruptive, there’s a silver lining for sellers willing to adapt. Here’s how you can make the most of the chaos:

1. Push Bundles & Boxes: Encourage buyers to bundle items to maximize value. Offer curated boxes or styled collections to make higher shipping fees feel like a bargain.
2. Target the Luxury Market: If you’ve got high-end items, lean into that market. Luxury buyers are less price-sensitive and will keep shopping, especially as fees for sellers are reduced.
3. Get Creative with Your Inventory: Now more than ever, it’s time to be strategic. Shift focus from lower-priced, individual items to higher-value offerings that make the fees feel worth it to the buyer.

What Now?

We’re all riding out the beta phase and holding our breath to see what 2024 will bring. Whether you’re a luxury seller thriving under the new structure or a budget-friendly seller needing to get creative, one thing’s for sure: Poshmark has changed the game again. And just like Britney’s iconic anthem, we’ll keep dancing through it, adjusting our strategies and bundling our way through the holidays and beyond.