What if your next Marie Kondo de-cluttering project could also serve as a side hustle? That’s the promise of Poshmark, a fashion, beauty, and home décor resale app that serves as an enormous virtual consignment boutique. The app, which just launched in Canada, allows users to shop from more than 75 million items, from vintage Nike sneakers to the new Kylie Peach Palette from Kylie Jenner’s cosmetics line.
Here’s how it works: Anyone can create a Poshmark account for free. Sellers snap a pic of an item from their closet, then upload it to their profile with a description and price (the minimum is $4). Once an item is sold, the seller is sent a prepaid shipping label paid for by the buyer for at a flat rate of $12.99. Buyers can search for items on the site through keywords, browse the categories (sorted by women, men, kids, home, and brand), or scroll through their feed, where they can follow their favourite sellers, as well as like, comment on, and share listings. Think Instagram meets eBay.
The quality and variety of the merchandise varies. You might be able to find gently used Gucci slides at a great price, or you could get what you thought was a great deal on your favourite skin care product, only to end up with an expired facial serum packed in an old Keurig box and reeking of coffee, as one Reddit user reported on a board dedicated to weird Poshmark experiences. Other buyers have had issues with receiving shipments in a timely manner since it’s up to the seller to ship the item themselves. This is why Poshmark encourages users to rate their shopping experience.
Overall, though, the formula has proved incredibly successful. Launched eight years ago in the U.S., Poshmark now has 40-million users. The company reportedly earned $140 million USD last year and has generated buzz in the tech world, making Forbes’ list of the Next Billion-Dollar Startups. Poshmark makes money by taking a flat fee of $3.95 on orders below $20 and 20% on all orders above $20, excluding shipping. The potential for sellers to earn some cash of their own is also promising, with some users claiming to have made six-figure incomes by selling merchandise on Poshmark. Now excuse us while we clear out our closet.