Poshmark vs ThredUP

Last Updated on October 16, 2023 by Alex

In the world of secondhand fashion, two platforms have risen to the forefront, each offering a unique approach to buying and selling pre-loved clothing, shoes, and accessories.

Poshmark and ThredUp have become household names in the world of sustainable and budget-friendly fashion, but how do you decide which one is right for you?

In this guide, you’ll learn all about Poshmark vs ThredUp, their features, advantages, and potential drawbacks.

What Is Poshmark

Poshmark is a social commerce platform that allows users to buy and sell new or old clothes online. Plus you can sell other items including shoes, handbags, luxury goods, and accessories. It operates as a mobile app and website where individuals can create listings for items they want to sell, and buyers can browse and purchase those items directly through the platform.

Key features of Poshmark include:

• Users can create profiles, follow other users, and build a network within the Poshmark community Sellers create listings for their items, including photos, descriptions, and prices
• Social interaction
• Posh Parties
• Poshmark provides shipping labels for sellers
• Transactions are handled through the platform, providing a secure environment for both buyers and sellers

What Is ThredUP

ThredUp is an online consignment store that allows users to buy and sell secondhand clothing, shoes, and accessories. ThredUp operates as an e-commerce platform, providing a marketplace for individuals to declutter their closets by selling gently used items and for buyers to discover and purchase secondhand fashion items at discounted prices.

Key features of ThredUp include:

• Users can request a Clean Out Bag from ThredUp, which includes a prepaid shipping label
• ThredUp offers a wide selection of secondhand clothing from various brands at discounted prices
• Items must be in good condition and meet certain criteria to be accepted
• ThredUp carries a range of brands and offers items in various categories, including women’s, men’s, and children’s clothing, as well as shoes and accessories
• Sustainability focus

How Does Poshmark Work

Poshmark is an online marketplace and social commerce platform that allows individuals to buy and sell new or used clothing, shoes, accessories, and other fashion items. Here’s a general overview of how Poshmark works. Find out more in this excellent guide here.

Account Creation

Users start by creating an account on the Poshmark platform. This typically involves providing basic information and creating a profile.

Listing Items For Sale

Sellers can list items they want to sell by creating listings. Listings include photos of the item, a description, the price, and other relevant details. Sellers can share these listings with the Poshmark community.

Social Interaction

Poshmark encourages social interaction among its users. Buyers and sellers can communicate through comments and likes on listings. Sellers often share their listings during Posh Parties, which are virtual events with specific themes.

Purchase Process

When a buyer is interested in an item, they can make an offer or purchase it at the listed price. Poshmark provides a secure payment system to facilitate transactions.

Shipping Cost

Poshmark provides a pre-paid label to the seller, making the shipping process easier. Sellers package the item and ship it to the buyer. Once the buyer receives the item and indicates satisfaction, Poshmark releases the funds to the seller.

Returns And Disputes

Poshmark has a return policy, allowing buyers to return items within a specified period if they are not as described. Poshmark also provides a dispute resolution process to address issues that may arise between buyers and sellers.

Fees

Poshmark charges a fee for each transaction, which is deducted from the seller’s earnings. It’s important for sellers to be aware of the fee structure when pricing their items.

Poshmark Ambassador Program

Poshmark has an ambassador program for active and engaged users. Ambassadors help curate the Poshmark marketplace, promote listings, and engage with the community. Find more tips on how to sell on Poshmark here.

How Does ThredUp Work

ThredUp is an online thrift store and consignment shop that facilitates the buying and selling of secondhand clothes, shoes, and accessories. Here’s a general overview of how ThredUp works.

Order A Clean Out Kit

Sellers can request a Clean Out Kit from ThredUp. This kit includes a prepaid shipping label and a large bag for sellers to fill with every clothing item they want to sell.

Fill The Clean Out Kit

Sellers fill the Clean Out Kit with unwanted clothes, shoes, and accessories that they no longer need. ThredUp has specific standards for the condition and brands they accept.

Send The Kit Back

Once the Clean Out Kit is filled, sellers use the prepaid shipping label to send it back to ThredUp. ThredUp then evaluates the items.

Item Evaluation

ThredUp’s team assesses the items for quality and marketability. Not all items may be accepted, and the ones that meet ThredUp’s criteria are selected for resale.

Payout And Donation

For accepted items, sellers can choose to receive a payout or opt for a donation. If they choose the payout option, they receive a percentage of the resale value of the items.

Shopping On ThredUp

Active buyers can browse ThredUp’s website or app to find secondhand clothing, shoes, and accessories at discounted prices. Items are categorized by brand, size, and style, making it easy for buyers to find what they’re looking for.

Purchase And Shipping

Buyers can add items to their cart and complete the purchase on the ThredUp platform. ThredUp handles the shipping process, and items are sent directly to the buyer.

Returns

ThredUp has a return policy that allows buyers to return items within a specified period if they are not satisfied or if the items do not match the description.

Sustainability Focus

ThredUp emphasizes its commitment to sustainability by promoting the reuse of clothing and reducing fashion waste. This focus aligns with the broader trend of promoting a circular fashion economy.

Poshmark Vs ThredUp Fees Explained

Both Poshmark and ThredUp have fee structures associated with buying and selling items on their platforms, but they operate in slightly different ways.

Poshmark Fees

Here’s an overview of all the current Poshmark fees.

Listing Fee

Poshmark does not charge a fee to list items. Sellers can create listings for their items for free.

Transaction Fee

Poshmark charges a flat fee for each item sold. The fee is 20% of the listing price for sales $15 and above. For sales under $15, the fee is a flat rate of $2.95.

Shipping Fee

Poshmark provides a pre-paid shipping label for sellers, and the cost is covered by the buyer. Buyers pay a flat shipping fee, and any amount above this fee is covered by Poshmark.

Shipping is supported to any location in the United States. Whether a buyer lives in New York, San Francisco, or Houston, they can receive their order.

Payment Processing Fee

Poshmark handles payment processing and charges a fee for this service. This fee is $0.30 for sales under $15 and 2.9% for sales $15 and above.

ThredUp Fees

Here’s an overview of the current ThredUp fees.

Clean Out Kit

Sellers can request a Clean Out Kit for free from ThredUp, which includes a prepaid shipping label.

Item Evaluation

ThredUp evaluates items sent in by sellers. There is no upfront cost for this service, but not all items may be accepted.

Payout

For items that are accepted and sold, sellers receive a percentage of the resale value as their payout. The percentage varies based on factors such as brand, style, and condition.

Shopping Fees

Buyers on ThredUp pay the listed price for items, and there may be additional costs such as shipping fees. ThredUp often offers promotions, discounts, or free shipping deals to buyers.

Poshmark Vs ThredUp Fees Comparison

Poshmark’s fees are more transparent and straightforward, with a clear percentage for the transaction fee.

ThredUp’s fees are less direct, as sellers receive a percentage of the resale value, and the buyer pays the listed price with potential additional fees.

It’s essential to check the latest fee structures on each platform’s official website, as fees are subject to change.

How Much Can You Earn Poshmark Vs ThredUp

When choosing between Poshmark and ThredUp, a deciding factor is the earning potential.

Poshmark Earnings

The amount you can earn on Poshmark varies widely and depends on several factors, including the quality of the items you are selling, their brand, condition, pricing strategy, and the demand for those items.

While some sellers on Poshmark have reported significant earnings, it’s important to note that results can vary, and success often requires time, effort, and a strategic approach to selling.

If you’re new to Poshmark, it may be helpful to start with a few listings to gain a better understanding of how the platform works and to gauge the response to your items. As you gain experience, you can refine your strategies for pricing, listing, and engagement to potentially increase your earnings.

ThredUp Earnings

The amount you can earn on ThredUp as a seller depends on several factors, including the quality of the items, the brands, the condition of the items, and the demand for those items. ThredUp operates on a consignment model, where you send in items, and if they are accepted, ThredUp sells them on your behalf.

It’s important to note that ThredUp does not disclose the exact percentage of the resale value that you, as the seller, will receive. The payout is influenced by various factors, and ThredUp uses its algorithms to determine the value of each item.

While ThredUp can be a convenient way to declutter your wardrobe and earn some money from items you no longer need, the payouts may not be as high as selling items individually on other platforms. Some sellers use ThredUp as part of a broader strategy, combining it with other selling methods.

Be aware that the consignment model means you may not have control over pricing, and the convenience of ThredUp comes with the trade-off of potentially lower payouts compared to selling items individually.

Poshmark Review Pros And Cons

To gain a better understanding of Poshmark, here are the pros and cons.

Poshmark Pros

Poshmark has gained popularity as a social commerce platform, especially for buying and selling fashion items. Here are some of the pros of using Poshmark:

• User-Friendly interface
• Large and active community
• Poshmark is accessible through both a mobile app and a website
• Posh Parties
• Poshmark provides pre-paid shipping labels for sellers
• Poshmark handles transactions securely
• Sellers can actively promote their items through sharing and participation in a Posh Party, increasing the chances of their listings being seen by potential buyers
• Environmental sustainability

Poshmark Cons

While Poshmark offers many benefits, it’s essential to be aware of some potential downsides or challenges associated with the platform. Here are some cons of using Poshmark:

• Fees
• Sellers on Poshmark may have less control over pricing compared to other selling platforms
• Competitive environment

ThredUp Review Pros And Cons

To gain a better understanding of ThredUp, here are the pros and cons.

ThredUp Pros

Here are some of the pros associated with using ThredUp:

• Convenience
• ThredUp takes care of the listing process and item photography, saving sellers time and effort
• Simplified selling process
• No upfront costs
• Professional evaluation
• Sustainability focus

ThredUp Cons

While ThredUp has several advantages, there are also some potential drawbacks or cons associated with using the platform. Here are some considerations:

• Sellers might receive lower payouts compared to selling items individually, as ThredUp determines the resale value and takes a percentage of that value
• Sellers do not have control over the pricing of their items. ThredUp determines the resale value based on their algorithms, and sellers receive a percentage of that value
• ThredUp has specific criteria for accepting items, and not all items may be accepted
• Long processing time
• ThredUp does not provide detailed breakdowns of how they determine the resale value of items
• Competitive market

Poshmark Vs ThredUp Verdict

The choice between Poshmark and ThredUp depends on individual preferences, priorities, and the specific goals of users.

Poshmark vs ThredUp the verdict:

Use Poshmark if:

• You value community engagement and want more control over pricing
• You are willing to actively participate in sharing and promoting your listings
• You have a diverse range of fashion items to sell

Use ThredUp if:

• You prefer a more convenient and time-saving selling process
• You prioritize simplicity and don’t want to create individual listings
• Sustainability is important to you, and you want to contribute to the secondhand market

Ultimately, individuals may find success on either platform depending on their selling preferences and goals. Some users may even choose to use both platforms strategically for different types of items. Learn more about other online platforms where you can sell your staff here.

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