Hate to Break it to Ya, We All Work for Poshmark

PrettiBoneInsights4 Comments

Let Me Explain Before all the Poshbosses Get Mad

I understand at first glance it might seem that every seller on Poshmark is their own "boss" but let's look at this pragmatically. I bring this up because the sooner you accept this, the sooner you'll plan accordingly to set yourself up to one day breaking away from the platform just in case something happens.

The Biggest Thing

Beyond some other reasons I'll mention later, my strongest justification for my thesis is the fees we pay is proportionate to the dollar amount we make in sales. That reason is enough for me to truly know where I stand when it comes to my "employment" with Poshmark.

This Principle Transcends Poshmark

Ebay, Mercari, Amazon, Poshmark, it doesn't matter. Due to the fact the fees you pay is proportionate to the sales amount you make, you are effectively working for a person or in this case, a platform. When you use other platforms such as Shopify or Big Commerce, you pay a fixed rate for the plan that's right for you and you keep all the earnings less the processing fees. Sure, you don't get nearly as much traffic as already established platforms such as Poshmark, but you do get to keep what you made, again, less the processing fees.

You Can Always Leave the Party

Let's go through some reasons why you think you're your own boss:
1. Source, list, accept/decline offers as you see fit or when you want
2. You own all your inventory
3. You can literally be naked doing it
4. You can always take your ball and go play somewhere else

Buuuut we have to consider some other things:
1. You don't own any of your digital content
2. The minute you leave the platform, you lose everything you built on the platform including your Poshmark followers
3. Poshmark can suspend your account as they see fit (at-will employment)

What About...

Sure you can argue that if we are employees then where is the 401k, where's the paid vacations, where are the health benefits but I think you're missing my point. Let's look at this differently. Theoretically, what if Poshmark has 2 account tiers:
1. Same as Always Tier; you pay fees that are proportionate to your sales
2. Monthly Plan Tier; you pay a fixed subscription fee to use the platform (let's say $100/month)

Out of those 2 tiers, who do you think is the true "boss" and who's the employee. The second tier is definitely where I would like to be at but I know that's not going to happen. But I hope you get my point by now.

So Why Am I Saying This?

I always try to have a clear assessment of my environment and situation and being on Poshmark is no different. Because I understand that I'm working for Poshmark, I try to think of ways where I can become less dependent on the platform just in case shit hits the fan.

I know this is a controversial topic I'm bringing up but I think it warrants its own short post. Lastly, there is nothing wrong with working for Poshmark, I just want you to know where you and I stand when Poshmark uses the "Posher" euphemism.

4 Comments on “Hate to Break it to Ya, We All Work for Poshmark”

  1. So much to think about. How much control do I really want and at what cost to myself and business.

    1. I love writing about these topics because nobody brings it up. And when it does get brought up, it really get people’s minds going.

  2. I wholeheartedly agree. I think about this all of the time as I build up my closet, what if this all went away “tomorrow”? Do you have any suggestions as to how we can proactively start creating a more independent plan for the future?

    1. What I’m currently doing is creating a large enough catalog (40k items) and moving onto my on own platform from there. I going to use Shopify to host the website. I’m also trying to build my following large enough for me to lose the traffic from Poshmark and still do fine when it comes to sales. By not having to pay the 20% fees, I can also provide a better price for my customers.

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