As Poshmark Rolls Back Fee Changes, Buyers Demand Refund For Fees Paid

Liz Morton
Liz Morton


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Poshmark is returning to their original fee structure starting today after massive pushback on new policy that split fees between buyers and seller - but while sellers are being given the opportunity to get rebates on some fees, buyers have been told they are out of luck for fees they paid during the ~3 weeks the new structure was in place.

In a letter to users announcing the roll back, CEO Manish Chandra recognized the disruption the changes had caused and advised sellers would be eligible for rebates to help account for the fact it might take time for them to edit listings and readjust prices if needed to account for fees on the seller side reverting back to 20%.

Poshmark Reverts To Original Fee Structure After User Outcry Over New Fees
Poshmark is returning to original fee structure after massive pushback on new policy that split fees between buyers and sellers.

The announcement said, in part:

We’re offering a rebate: To give you time to adapt your listings and pricing strategies, we will issue a rebate** for the difference in seller fees on listings created or edited during the fee change period and sold via Buy Now, from October 24, 2024, through the weekend until October 27, 2024.

Unfortunately, no real acknowledgement was given for how the changes impacted buyers on the marketplace and buyers have since taken to Reddit sharing the responses they've received from Poshmark when inquiring about the possibility of rebates or credits for fees they paid during that time.

I asked about a refund to buyers since sellers are getting a rebate/refund but they said they aren't doing that. They should. If you purchased anything from posh during the new fees period you should contact them thru their support page. The more of us that say something, we may get our fees back too.

Buyers should def get reimbursed too. It’s not fair to just undo the “damage” to one of the parties. Besides, if buyers aren’t happy they’re not gonna be buying and sellers are gonna be affected. Make it fair.

If they were smart and wanted to get buyers back, they’d issue those of us who did buy items Posh credit for the fees. It would probably drive up their sales after the slump if they did.

Several buyers say they believe they are owed refunds because the fee allegedly violates California law and possibly other states as well, since Poshmark was folding it in with sales tax and hiding the breakout of costs a click away in an informational pop up.

Those buyers are encouraging others to report Poshmark to relevant state authorities, with some even saying they are pursuing chargebacks to recover the fees - though it's important to note Poshmark may shut down accounts who they believer are "abusing" the chargeback process.

I emailed Posh support and requested my “buyer protection fees” back either as a refund or site credit, citing California SB 478.

I received a prompt reply stating the old fees will go into effect on 10/24 but they will not refund me.

I replied back once again, stating they may not have a choice.

I will report to the CA DOJ next if they don’t want to refund/credit me.

Has anyone else done the same?

Side note - I am a CA resident and Posh is a CA business.

I’m pleased they’re going back to the prior model but I think they owe it and may be required to reimburse their users what are essentially hidden “junk” fees.

I emailed about this too and am also a California resident. Even though I made one purchase during the fee restructure and they buyer fee was like $4 I want the refund. They said the same to me so I'm just going to start a dispute with amex and report them to the attorney general's office.

I reported thredup before for misleading advertising and their legal counsel was forced to respond. So even if it amounts to nothing, it's totally worth wasting their time and resources to report them.

I wonder if there are any lawyers that could take this to court for CA residents in a class action lawsuit. I bought a pair of $500 boots and used some credits under my account to pay. In doing this, I didn’t realize I paid an extra $75 in fees. I am really pissed and want my money back.

Do you think Poshmark should consider refunding buyer fees or at least offering some kind of goodwill credit to those who purchased during this failed fee experiment?

Let us know in the comments below what would be fair and enticing to keep buyers coming back to the site!

PoshmarkFees & Payments

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Liz Morton is a 17 year ecommerce pro turned indie investigative journalist providing ad-free deep dives on eBay, Amazon, Etsy & more, championing sellers & advocating for corporate accountability.

2 comments
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EmilyN
Also, since I wrote them emails regarding my opinion and anger, I’m almost Carson they messed with my account and changed the algorithm. It’s as if I’m completely invisible to everyone on the app no matter what I do. I’m trying to sell everything I can to make up for the money I spent out of my husbands pocket. Even gifts he got me. There was an active shooter at my kids school the day I had the issue with the seller and Poshmark and they were so incredibly rude and insulting, I cried the rest of the day. They did care at all, Poshmark just let the woman tell me I was a waste of everyone’s time, that I was stupid and to stop shopping for things I didn’t need. The woman literally lied to me about sizes and completing away with being able to charge me $155 for the wrong sizes! $21 of that sent to Poshmark for buyer protection. They bullied me and got paid to do so. They should be ashamed of themselves.
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EmilyN
Yes! I finally found someone who agrees! I just started buying on Poshmark resell the moment those 3 weeks of buyer protection fees took place. I had no idea until they ended it! I spent thousands! Now I’m at such a financial loss, it’s hurting my family. I emailed so many times and never got a response! And buyer protection?! I was used and abused by a seller, Poshmark wouldn’t even speak with me just defended the buyer completely and wouldn’t even allow me to respond in the conversation! I’m so upset with Poshmark but now I have so much inventory I planned on earning money from but I’m actually out all of the money I spent. My husband still isn’t speaking to me over it. To be trestdd
With such disrespect, sick disregard… not to even acknowledge my existence when I paid them tons of money for absolutely no reason is incredibly insulting and disgusting. How they have Ben allowed to get away with this is beyond me. It is theft. Why are the sellers being treated so well with all of this and the buyers are treated like absolute trash?! I’m sooo mad!!!!

Recent Comments
Avatar PlaceholderMksowaYesterday
They need to fix a very broken system full of nasty attitudes. The patrons no longer matter.
Avatar PlaceholderMarty_J2 days ago
Was just checking to see if it would post without creating an account but….
eBay seller since 2022
Just started selling about a year and half ago

800 items sold 99.7 feedback

Recently I went away for family things for 30 days set my acct to be away … got back with items not received cases opened

I wasn’t able to revise existing listings post new listings OR refund the buyer from my eBay funds …

The items were caught up in recent wild fires but ended up being delivered late. I had to beg the buyer to let me pay them off of eBay to close the case because it was on hold and I wasn’t able to refund them from my eBay acct etc…. So luckily they obliged and I did … but ever since then my acct must be strikes as high risk because funds have been on hold 3 days after delivery since then indefinitely might I add… I get the run around everytime etc etc FINALLY I got someone saying it’s temporary it’ll be back to normal etc. these r all reps from escalated departments… one lady told me that with my history and feedback I’ve proved beyond doubt that I’m reliable seller and shouldn’t be on hold she put in for a appeal never heard back got the run around for another few months… they keep telling me I’ve been chosen for the new update they r rolling out total BS … do you believe that sellers will stay on eBay with these holds ? No they will simply go to another platform … they r 100% making money on the holds and use any reasoning to tell you basically no and keep profiting…. The get around is creating a new acct… these cases were closed without eBay having to step in and might I add I lost $$ and its been truly frustrating esp since I’ve built the acct up but I know I can do it again.. when they tell me its going to happen to all accts I just mention how my brother just opened one n now has immediate payments they don’t know what to say I don’t think they really even know.,, its sad n scummy but I see a class action lawsuit coming honestly ! I don’t know💬 if I forgot anything but well written thanks for the information. Have a great one!
Avatar PlaceholderJkvinyl32 days ago
As many have already quoted - us sellers now can not charge for packaging. I will be £500 a year out of pocket.