After Backlash, Poshmark CEO Apologizes and Reassesses New Surcharge for Shoppers
According to The Sun, Poshmark has swiftly removed a newly implemented surcharge, just weeks after its introduction, in response to negative feedback from sellers on the platform.
Background on the Surcharge
Poshmark, an online social marketplace for buying and selling secondhand homeware, electronics, and fashion, introduced the surcharge for new sellers to help balance costs between buyers and sellers. According to a letter from founder and CEO Manish Chandra, the fee was intended to benefit all users of the platform.
The surcharge, which took effect on October 3 for U.S. sellers and was set to be implemented in Canada, included:
- A 5.99% fee on the order total for sellers
- An additional $1 for orders under $15
- $2 for orders between $15 and $50
- $3 for orders $50 or more
However, Chandra noted that the surcharge had the unintended consequence of causing customers to spend less, prompting the company to reconsider its approach.
Reversal of Fees
As of October 24, Poshmark will eliminate the surcharge and revert to its previous fee structure:
- 20% of the order total for sales over $15
- $2.95 for orders less than $15
Chandra apologized for the disruption the surcharge caused, stating, “The outcome of the change did not meet our expectations, and I sincerely apologize for the disruption and impact this has had on you.”
Additional Changes: The End of Posh Pass
In addition to scrapping the surcharge, Poshmark is discontinuing the Posh Pass pilot program, which aimed to reward highly active sellers, known as Posh Ambassadors, by covering shipping costs. Under the Posh Pass program, qualified sellers could ship for free until the end of 2024. It remains unclear if Posh Ambassadors would have incurred monthly membership fees for this benefit in 2025.
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The Posh Pass initiative was introduced alongside the surcharge and will now be terminated.
Updated Buyer Protection
Poshmark is also removing an updated buyer protection fee that had increased item prices. The platform will return to its original “Posh Protect” policy, offering buyers a full refund under certain conditions at no extra cost.
Chandra stated that the company will continue to explore similar programs that benefit the community in the future.
Industry Trends
Poshmark is not alone in its decision to eliminate surcharges based on customer feedback. Recently, Stop & Shop announced it would no longer charge customers at its 25 stores in Rhode Island a 10-cent fee for paper bags, returning to free bags to make groceries more affordable.
This trend reflects a broader movement among retailers to respond to consumer concerns and enhance the shopping experience.
