Poshmark Fees and Payment Process Explained (2025)

What Every New Seller Needs to Know Before Their First Sale

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If you're starting your reselling business from home in 2025, Poshmark is one of the easiest platforms to get started on. The app is simple, the buyer base is large, and shipping is handled for you.

But there’s one big question most beginners have:
“How much does Poshmark take from each sale, and how do I actually get paid?”

This guide breaks down Poshmark's seller fees and payment process, with clear examples and tips to help you maximize your profit while avoiding confusion.

Whether you’re flipping items from your closet or launching a full-blown side hustle, understanding the money flow is essential.

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🧾 What Fees Does Poshmark Charge in 2025?

Keyword: how to start reselling, reselling business from home

Poshmark makes money by taking a cut from each sale. This is known as their commission fee.

As of 2025, the Poshmark fees are:

• Flat fee of $2.95 for sales under $15

• 20% commission on all sales of $15 or more

• No listing fees, monthly fees, or shipping fees for sellers

Let’s break it down with examples.

🔍 Fee Examples:

You only pay when you sell. That’s what makes Poshmark attractive to beginners.

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Do You Pay for Shipping?

No, sellers don’t pay shipping fees on Poshmark.

Here’s how it works:

• The buyer pays a flat shipping fee (currently $7.97 in 2025)

• Poshmark emails you a prepaid USPS Priority Mail label

• You just print, pack, and ship—no postage costs for you

🧠 Pro Tip: This flat-rate shipping applies to packages up to 5 lbs. For heavier items, you’ll need to pay an upgrade fee (usually $4–$10).

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How and When Do You Get Paid on Poshmark?

Once you’ve shipped your item and it’s delivered to the buyer, the payout process begins.

🔄 Payment Timeline:

⏱️ Time to Funds:

• Best case: 2–3 business days after delivery

• Worst case: 3 days after no response from buyer + 2 days bank transfer

🧠 Tip: Encourage buyers to accept items quickly with a thank-you note and great packaging.

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How Do You Withdraw Your Poshmark Balance?

Once your funds are available, you can cash out in a few different ways:

Poshmark Payout Options:

• Direct Deposit to Bank Account (fastest & free)

• PayPal (subject to processing times)

• Venmo (as of 2025, available to some users)

• Request a Check (mailed to your home, takes longer)

You can also keep your balance in Poshmark and use it for purchases on the platform.

🧠 Pro Tip: Set your payout method immediately so there’s no delay when your first sale hits.

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Case Study: Mia’s First $500 on Poshmark

Background:

• New seller, listing clothes from her closet

• Made 15 sales in her first month

• Initially surprised by the 20% commission

What she learned:

• Priced items with the fee in mind (aimed for $20+ per item)

• Batched shipping 2–3 times a week

• Requested payouts weekly to her bank account

Results:

• $500 in sales

• $400 earned after fees

• Used profits to source new inventory at thrift stores

“Once I understood how the fee worked, I stopped underpricing and started treating it like a business.”

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How to Maximize Profit Despite the Fees

While 20% might sound steep, there are ways to work smarter:

1. List Items $15 or More

That avoids the flat $2.95 fee, which takes a bigger chunk from low-value sales.

2. Bundle Items

Encourage buyers to buy 2–3 items at once. You pay one fee, and it boosts order value.

3. Factor Fees into Pricing

Use this formula:
(Target Profit + 20%) = List Price

For example, to earn $30, list at $37.50.

4. Use Smart Offers

Set auto-offers with Closo to convert more likes without cutting too deep into profit.

5. Source Higher-Margin Inventory

Thrifted items with high resale value (e.g., Lululemon, Nike, vintage) often offer better margins—even after the 20% fee.

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What About Returns and Disputes?

Poshmark has a final sale policy, but buyers can file a return claim **only if the item is:

• Not as described

• Damaged

• Missing

If the return is approved, the buyer gets a prepaid return label. You don’t receive payment and the item is sent back.

🧠 Tip: Be honest in listings. Always show flaws in photos and descriptions to avoid disputes.

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Poshmark Fees vs. Other Platforms

🧠 Bottom Line: Poshmark’s flat 20% may be higher, but the tradeoff is simplicity—no nickel-and-dime fees, free shipping labels, and seller-friendly tools.

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Final Thoughts: Understanding Poshmark’s Fee Structure Is Key to Profit

If you're serious about growing a reselling side hustle in 2025, understanding your numbers is non-negotiable.

Poshmark keeps it simple:

• No listing fees

• No surprise charges

• Just a flat commission and fast payout process

Once you know how it works, you can price smart, scale fast, and reinvest wisely.

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TL;DR: Poshmark Fees and Payment Process (2025)