The popularity of online marketplaces nowadays truly offers convenience to many shoppers. Not only does it make browsing through a lot of items less tiring, but it also saves time by not needing to go to the mall just to buy them. In addition, items are shipped right to your doorstep with just a few clicks. Furthermore, because buyers who do online shopping are increasing, many marketplaces are also booming. Many sellers opt to resell their items virtually and give their secondhand apparel a new home. As a result, you will find a wide variety of goods sold online, especially fashion pieces like clothes, accessories, footwear, and even jewelry; the choices are almost infinite.
Marketplaces such as eBay, Mercari, Tradesy, RealReal, Poshmark, and ThredUp have millions of users composed of sellers and buyers. Although these platforms are a great resale market, it is important to know that each marketplace is uniquely designed and have their own business models to serve its users and provide a better shopping experience.
Buyers using these apps and websites often have two things to consider before buying online: shipping fees and item conditions. But for sellers, many factors need thorough consideration before listing an item on any platform. This includes inventory, earnings, payout, and platform commission fee. In addition, as a seller, you must know the advantages and disadvantages of each marketplace so you can decide which one is for you. In this article, we at SuperPosher will compare two online clothing reselling apps, such as Poshmark and ThredUp, to help you learn the differences between the two e-commerce platforms and essentially decide which one works for you.
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Ever since Poshmark opened its virtual doors to buyers and sellers in 2011, it has reached a big audience of more than 60 million users across the United States and Canada. Within ten years in the e-commerce world, it was able to grow its community and have improved its tools and features. Most of the Poshmark customers are composed of men and women who belong to the Millenial population whose interests are mid to high-end brands. From Nike and Lululemon to Gucci and Chanel, Poshmark has them. The platform is dominated by a mixture of new and used pieces that are under the categories of clothing, pets, make-up, accessories, and bags. However, if you are selling items such as health and wellness products, home essentials, electronics, and other items that do not qualify to the categories available in Poshmark, this platform is not for you.
Listing on the platform is free, and you can post as many items as you want in Poshmark. This way, you have total control over your closet, and you can sell whatever item you want for as long as it is qualified under Poshmark's available categories. In addition, you can freely sell what is on-trend, which encourages buyers to make purchases and, in turn, convert to a sale.
ThredUp is an online consignment shop that started back in 2009, specializing in kids' clothing and eventually expanded into selling women's apparel. At the moment has approximately 1.24 million active buyers and almost half a million sellers from across the United States and Canada. The main users of ThredUp are composed of women whose interests are in thrifting as the majority of items here are used or secondhand apparel hence part of their mission is to reduce landfills' fashion waste. This marketplace only lists items that are exclusively under women's and kids' clothing but does not allow items like sleepwear, kids' clothing without a brand, prom dresses, items without sizes, and many more. Additionally, items such as men's clothing are also not allowed to be sold on the platform, along with many other things such as jewelry, electronics, and non-clothing items.
While you are free to list as many items as you want on Poshmark, that is not the case with ThredUp. The platform has a unique business model when it comes to listing items. Retailers who want to sell on the platform need to order a clean-out kit from ThredUp and a clean-out bag where they can put the items from their closet that they wish to be listed and sold, or prepaid shipping label is then sent via mail to the sellers. However, sellers should take note that ThredUp sorts the items that are sent to them before listing, so there is a chance that an item from your clean out bag may not qualify and won't be listed in the bidding window. Additionally, sellers who wish to declutter their closets and don't care about making money also have an option to make donations instead of selling their clothes.
Poshmark's commission fees are straightforward. The platform has designed its business model to be convenient and uncomplicated so sellers in this platform can easily know how much they are making on the items that they have listed. The fees are only classified into two:
- The $2.95 flat rate: This fee applies to items that are priced below $15. With this flat rate, it is easier for sellers to factor in the fee and indicate a price on their listing without compromising their earnings. It also offers convenience on sellers' part as this makes computation easy when taking out the commission fee for their low-cost items and shipping costs.
- The 20% commission fee: For items priced above $15, a 20% commission applies. This percentage may deter new Poshmark sellers, but it is a fair and reasonable commission fee considering that it covers the shipping label, credit card processing fee, customer support, Posh Protect buyer protection, and sales tax. Also, Poshmark does not charge other transaction fees, listing fees, and Paypal fees like what other e-commerce platforms have.
- No Listing Fee: Poshmark does not charge a listing fee, and sellers are free to list as many items as they want in their closet. Because sellers are listing items on their own, the platform does not charge or offer other extra fees such as insurance concerning your listed items.
- Payout: On Poshmark, sellers' earnings are directly credited to their Posh account. They have an option to spend it on the platform by buying other posher's items or withdraw it into their bank as cash.
ThredUp has a different business model compared to its competitors. Because the platform lists items on the sellers' behalf, its commission fees are different.
- Varying Commission and Payout Structure: ThredUp's commission fee varies from 20% to 90% of the selling price. And the sellers' payout depends on the cost of an item. For example, for items priced at $5.00 to $19.00, sellers get a payout of 5% to 15% and so on. Meaning, in this marketplace, the more valuable the item, the higher your percentage is.
- $10.99 Return Assurance fee: Sellers have an option to avail of this return insurance if they have second thoughts about selling an item, items that are not accepted from the kit, or items that don't sell during consignment. This fee of $10.99 serves as sellers' guarantee that their items will be sent back to them and will not be sent to ThredUp's donation and recycling program. Given that ThredUp is the one who processes and decides which items passed their quality control over things that are eligible for selling on their site, there is a possibility that some items in your clean-out bag won't make it to their listing.
- $16.00 Expedited Processing fee: If sellers want their items to be processed as soon as possible, they may opt to pay a fee of $16.00. The clothes in your clean-out bag will be processed faster, but will deduct the said price from your earnings.
- Payout: On ThredUp, sellers can choose whether to spend their earnings on the platform or cash it out using PayPal or Stripe. For PayPal, a 2% transfer fee is deducted from your earnings, while for Stripe, a $0.25 from your earnings plus a 1.5% transfer fee applies.
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Shipping of Items
Poshmark's shipping is basic, and sellers have three options for the shipping cost of their listings. It's either they shoulder the total shipping cost of their items and offer free shipping to the buyers, offer discounted shipping along with bundles, or charge the entire shipping cost to the buyers. Poshmark also provides a flat rate of $7.45 for items weighing 5 lbs and below via USPS.
On ThredUp, sellers are not in control when it comes to the shipping costs or shipping discounts of the item. Because ThredUp handles all listings, the shipping costs are also handled by the platform. ThredUp offers a flat shipping rate of $5.99 and provides bundling at a specific price for buyers to avail of the free shipping.
Poshmark offers a seller's protection through Posh Protect, which provides full coverage to its sellers provided that all items sent are scanned into the USPS tracking system and uses Poshmark-provided labels. In addition to this, Poshmark requires the buyer's signature upon delivery for items priced at $400 and up.
On ThredUp, the seller's protection works differently as it is the platform that sends the items to its buyers. However, for sellers who send their clean-out bag and want an assurance that they will get the unlisted or unqualified items, sellers are encouraged to avail the Assurance Fee or else, unsold and unqualified items are upcycled through third parties or Rescue Boxes.
Effort as a Seller
ThredUp offers convenience to sellers in the sense that they will process your clothes for you until your items get listed on the platform. Sellers are not required to render any effort after sending in their clothes and checking their accounts for updates. However, keep in mind that ThredUp has its own strict quality standards, and not all items that sellers include in the clean-out bag get listed and sold. Although it lessens the effort from sellers, selling on ThredUp only offers a little profit and does not guarantee a quick return of income as efforts on boosting the listing like sharing and relisting are not possible.
Selling on Poshmark, on the other hand, offers a social experience to sellers. To boost your sales, features such as self-shares, community shares, following, relisting, and joining virtual parties are a helpful way to increase your visibility and bring potential buyers to your closet. If you have many listings, Poshmark bots like SuperPosher are a beneficial tool that can help you manage and boost your items. Tasks such as self-shares, community shares, following, returning follows, sharing in Posh parties, and relisting can be quickly done without you needing to supervise your closet 24/7. SuperPosher is intelligently designed to help Poshmark sellers reach a broader audience that can potentially increase your sales. If this is something that you want to try, we offer a 7-day free trial with a responsive team ready to help you. All you have to do is register here!