How Does Poshmark Pay You? Here’s Everything You Need To Know

Jul 29

If you're new to Poshmark or considering joining, understanding how payments work is essential. You may be wondering: How does Poshmark ensure secure transactions? What options are available for sellers to receive their earnings? And most importantly: how long does it take to get paid?

Before joining Poshmark, I had never sold clothes online before. If you’re anything like me, you probably feel a little skeptical about the payment process. You might even worry about potential scams—especially if you’re looking to sell your collection of designer handbags or other high-end items.

Having successfully sold thousands of items on Poshmark, I can confidently say I trust their payment system, and any initial worries I had have been long put to rest. In fact, one of my favorite aspects of Poshmark is how quickly I can get paid. It’s so much quicker than having to wait weeks for a check from a traditional job!

In this blog post, I’ll delve into the intricacies of Poshmark's payment system, demystifying the process and providing a comprehensive guide on how Poshmark pays you.

Poshmark’s payment system

Is Poshmark’s payment system secure? Is my information safe?

Poshmark's payment system serves as a trusted intermediary, facilitating transactions between buyers and sellers. This means that buyers don’t have access to sellers’ private information and vice versa. When a buyer purchases an item, Poshmark steps in to process the payment and safeguard both parties involved by holding the buyer's payment securely in escrow. This step ensures that the buyer receives the item as described and in the promised condition, while sellers can feel confident knowing that they will receive their earnings promptly and reliably.

How long does it take to get paid on Poshmark?

Once a package has been delivered, the buyer has three days from receipt to inspect the item and verify that the condition is as-described.

Upon acceptance, Poshmark immediately releases the funds to the seller. If the buyer does not accept the package within three days (and does not open a case to return the item) then Poshmark will automatically release the funds to the seller after that time frame has passed. This helps to protect both buyers and sellers from potential fraudulent activities.

If a return case gets opened against you and Poshmark denies the return request, your earnings will be released immediately upon the case being ruled in your favor. Consequently, if a return case gets approved, the buyer will be refunded so long as the item gets shipped back within 5 days. As a courtesy, Poshmark pays for the return shipping label. If the item does not get shipped back within the 5-day time frame, your earnings will then be released to you.

How much of a cut does Poshmark take? How are fees calculated?

Poshmark deducts fees from the total sale amount to help to cover various aspects of the platform's services such as paying employees, app maintenance, and supporting the platform's overall operations and continuous improvement.

So how much of a cut does Poshmark take? For all sales $15 and over, sellers keep 80% of the sale and Poshmark takes a 20% commission. So if you sell a dress for $50, Poshmark takes $10 and your total earnings come out to $40. If an item sells for under $15, Poshmark takes a flat commission of $2.95. So if you sell a bucket hat for $11, Poshmark takes $2.95 and your total earnings come out to $8.05.

Who pays for shipping on Poshmark?

Those new to Poshmark often wonder: Does the buyer or seller pay for shipping? Or does Poshmark pay for shipping?

Shipping fees are typically paid by the buyer unless the seller specifically chooses to offer free or discounted shipping. Sellers have the option to offer $5.95, $4.99, or FREE discounted shipping which gets taken out of their total earnings. Since the buyer pays the shipping fee in most cases, it won’t affect your earnings, but sellers should keep these fees in mind when pricing their items.

The one instance where Poshmark covers shipping discounts is during their “Closet Clear Out” promotion. This typically occurs on Fridays and Sundays. During a “Closet Clear Out” promotion, if a seller edits a listing and lowers the price by 10% or more, buyers will receive a notification that the price has been reduced accompanied by a shipping discount (typically for $3.99 or $4.99) paid for by Poshmark. That means the buyer only has to pay $3.99 or $4.99 for shipping but this discount does not affect the seller’s earnings AT ALL. This special reduced shipping usually only lasts for 6 hours after the price has been dropped.

As previously noted, if a return case is opened by the buyer and gets approved, the cost of the return shipping label is paid for by Poshmark.

How do you get paid on Poshmark?

Poshmark provides multiple options for sellers to receive their earnings. The primary method is through Poshmark Balance, where sellers can use their earnings on Poshmark to make purchases from other sellers. This option is especially convenient for avid shoppers. However, if sellers prefer to access their funds outside of Poshmark, they can request a withdrawal. Withdrawals can be made via direct deposit to a linked bank account or by requesting a check to be mailed.

As someone whose primary purpose for being on Poshmark is selling to make an income, I choose to withdraw my “redeemable balance” via direct deposit on a regular basis and do not use my funds to shop on the app. Transferring your funds shortly after they become available is advised since Poshmark is not a bank and should not be utilized to hold large sums of money indefinitely.

I use Chime for my business bank account to keep my reselling funds separate from my personal funds. One of the major reasons I chose Chime was because of how easy it is to get started. I opened the account during the height of COVID and was so thankful I didn’t have to show up in person to a brick-and-mortar location. I was also impressed by how quickly I could receive my direct deposits thanks to Chime’s “Get Paid Early” feature (it’s automatically unlocked when you sign up for a Chime checking account!). Oftentimes when I request to withdraw my Poshmark balance via direct deposit I see the money show up in my Chime account the SAME DAY.

Interested in opening an account with Chime? Sign up with my link to get $100 when you enroll and receive a qualifying direct deposit of $200+ within 45 days.

Transparency and tracking

Both buyers and sellers can easily track the progress of their transactions through the Poshmark app and website. Users can view the status of their sales including:

USPS tracking updates and delivery status throughout the shipping process
When funds have been released
When you’ve made a request to withdraw funds

Keeping buyers and sellers in the loop every step of the way makes the experience more seamless for all parties involved.

Does Poshmark pay for lost packages?

Poshmark pays for lost packages so long as the Poshmark-provided label was used and the package was successfully scanned into the USPS tracking system. This applies to cases where the package is lost in transit (and never gets marked as delivered) and also in cases where the package gets marked as delivered but the buyer reports that they cannot locate the package. In both cases, the buyer will be refunded and the earnings will be released to the seller.

I have experienced the “lost package” dilemma as both a buyer and seller before and it has always been resolved favorably. In those instances, I always reach out to Poshmark support. You can contact them via email at support@poshmark.com

How to avoid scams as a Poshmark seller

Despite Poshmark's professional payment system, you may still be worried about getting scammed on Poshmark. Luckily, there are several ways you can safeguard yourself as a seller.

USE POSHMARK’S PAYMENT SYSTEM

To reduce the risk of scams, it’s recommended to conduct all transactions within Poshmark's platform using their secure payment system. Avoid making payments outside of Poshmark, as it may put you at risk of losing your money without any recourse.

COMMUNICATE WITHIN THE POSHMARK APP

Keep all communication within the Poshmark app to ensure that important information and conversations are documented. Avoid sharing personal contact details or conducting transactions through external platforms or channels.

BE THOROUGH WITH YOUR LISTINGS

If you’re worried that a buyer might intentionally damage your item in order to get a return case approved, it is imperative that you are thorough with your listings. Take photos in good light so buyers can see your items clearly. Photograph any and all flaws and note them in your description. If a buyer requests measurements, document the measurements by taking photos and saving them to your phone. That way, if the buyer opens a case questioning the accuracy of your measurements you can submit the photos as evidence.

Now that you’ve familiarized yourself with how Poshmark’s payment system works, you can embark on your Poshmark journey armed with more knowledge and confidence. Whether you're clearing out your closet, selling as a side hustle, or plan to make this your full-time income, knowing how Poshmark pays you can help to both alleviate fears while also empowering you to sell on the platform with peace of mind and confidence.

Get $10 when you sign up for Poshmark using my invite code: POSHTOPROFIT