- Poshmark is an online marketplace where people can buy and sell clothing from boutiques or their own closets.
- The Wall Street Journal reported on Thursday that Poshmark is planning to file for an IPO later this year.
- Since it launched in 2011, it has grown into a community of five million sellers.
- Last May, the company announced that it had paid out $US1 billion to its community of sellers so far. One of these sellers, Suzanne Canon, personally pulled in $US1 million of sales on the app.
- Visit Business Insider’s homepage for more stories.
Men and women across the United States are joining the Poshmark craze and selling their clothing online. Some are even turning it into a full-time job and launching their own boutiques.
This online-only marketplace functions in a similar way to eBay in that it allows people to buy and sell clothing and accessories with ease.
The Wall Street Journal reported on Thursday that Poshmark is planning to file for an IPO later this year. The company did not immediately respond to Business Insider’s request for comment.
Since launching in 2011, Poshmark has transformed into a community of five million sellers, who so far have been paid out $US1 billion, the company said last year. The company was founded by Manish Chandra, who is currently its CEO. His idea for Poshmark came about as iPhones started to explode in popularity and Chandra realised just how easy he could make the process of selling clothing online.
“It marries technology, fashion, and commerce together,” Chandra told Business Insider in 2018.
Last year, Business Insider interviewed top seller Suzanne Canon, who has personally pulled in over $US1 million in sales since she started selling in 2012. Selling on Poshmark is now her full-time job.
“I don’t understand how it happened. I went on the app to make a little money on extra clothes,” she told Business Insider.
Sellers only need to upload photos of their items from their phone to the app in order to list them for sale. Poshmark takes a $US2.95 commission on all sales under $US15. It takes a 20% commission on any sales above $US15.
We spoke to five of the app’s top sellers, who have pulled in amounts ranging from $US10,000 to around $US100,000 a year since beginning to sell on Poshmark over the past few years.
See their top tips for turning a sale on Poshmark, below:
Take good photos.
“Take great pictures. If your cover shot doesn’t look dynamite, no one is going to give your item a second glance,” seller Kate Hill told Business Insider.
Hill joined Poshmark two years ago and has made over $US123,000 in sales on the app to date.
Channel a particular style.
“For a beginner on the app, start off with building your brand: colour scheme, consistent photography, and a catchy brand name. You want to make your closet a memorable experience,” Cynthia Mendoza told Business Insider.
Mendoza is a full-time teacher and part-time seller who has made $US38,000 in sales on the app.
Research what is selling well and listen to customer feedback.
Top sellers say it’s wise to take current trends into account and see what is selling well by checking the top-selling categories and the number of likes on different items.
“Pay attention to what buyers want,” Kristin Bachman said. “You have all that information at your fingertips.”
Bachman, who makes six figures per year on Poshmark,initially started out selling her own clothing from her closet, but she now has her own boutique on the app. If customers respond well to a particular style of clothing or fabric, she stocks more of it.
“See what products have hundreds of likes,” she said. “You can see what buyers are gravitating towards.”
Compare prices on the platform.
“Unfortunately, it doesn’t matter what the item is worth to you, shoppers most often will not pay for the sentimental value,” Hill said.
This means it’s wise to work out how much similar items are selling for in advance.
Be social on the app.
Part of the success of Poshmark comes down to the fact that it offers a social shopping experience. Canon said she has a loyal community of customers – 75% of her sales come from repeat buyers, many of whom she has gotten to know on a personal level.
“Be a customer service queen (or king!),” Ivy Mattio, a part-time seller based in Chicago, told Business Insider.
“Be helpful and answer questions promptly in a kind and courteous way, and always help buyers with any problems that arise.”
List new items daily and re-share your items frequently.
“The more listings you have for sale, the better your chances are to sell,” Mattio said.
If you list items more frequently and re-share your closet, they will stay in the app’s algorithms.
“It can be very chaotic,” Bachman said.
Being organised is crucial if you have lots of orders and new inventory coming in. She advises sellers to keep good records so they can review previous sales whenever they need to.
Share other users’ listings.
Sharing other sellers’ closets could help get the attention of more potential buyers.
“It’s a favour for a favour,” Amber Aaron, a mother and full-time entrepreneur, told Business Insider.
List items for 10-20% more than you’re willing to sell them for.
This means there is more room for negotiation, and you can lure customers in with price drops, Aaron said.
Be prepared to work hard.
“It’s not going to be easy,” Canon told Business Insider.
If you want to make this into a full-time job, you need to put in the hours. Successful sellers say their days are made up with sending out packages, sourcing products, photographing and uploading new items to the app, responding to customers’ messages, and building up their community.
“It requires the dedication of a job. This experience is truly one where you get out of it as much as you put into it,” Aaron said.
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