In my last post I talked about how to list your items on Poshmark. I included my tips for choosing what to sell and how to write great titles and descriptions. Now, let’s talk about how to price your items!
See my last post by clicking here.
how to price your clothes on Poshmark
Pricing is something that tends to trip people up. How much do I price this? How much is it worth? What if I price it too low? What if I price it too high?
Don’t worry, I’m going to give you some SIMPLE tips and tricks that have worked for me.
I’m going to talk about both list prices and sell prices. They are different. What you list an item at is not what it will sell at, and what it sells for is not what you’ll get for it. Let’s talk about it.
how pricing on POshmark works
Poshmark takes 20% off all sales. They now have a handy tool built right into the listing page that will show you how much you’re going to earn (I use to have to mentally calculate this, so yay!) So always add 20% of what you’d like to get to calculate for the Poshmark fee.
Keep in mind that after you have listed your item you may choose to lower your prices if your item isn’t selling, or if you want to gain some attention, which I’ll talk about in my How to Sell on Poshmark: Sharing post. So, you want to bump your price up a little higher than what you’d like in preparation of a price drop.
And then on top of that, you’ll get offers from people. Unfortunately you cannot turn off the ability for people to make offers, it’s just part of the Poshmark culture, so you’ll have to price accordingly. My advice is to be prepared to accept offers by pricing a little bit higher than you want to sell the item at.
Needless to say, I always set my List Price at about 20%-30% higher than I want the sell price to be.
For example, if I want to earn $16 for a jacket, I’ll have to list it at $20 (Poshmark 20% fee will take $4), but since I’m factoring in a few price drops or even an offer, I’ll actually list my item at $25 (20% higher) or $29 (~30% higher). And hopefully it will sell for at least $20 by price drop or offer, so I can get the $16 I originally hoped for.
What if someone buys something outright at your “full price” before you’ve had a chance to drop the price to your “desired selling price”? Celebrate, sister! They saw your item and thought your asking price was fair, so they bought it! Don’t feel guilty about it. You might do a little research to see if you priced your item too low, but don’t sweat it! Just celebrate and move on.
What if you can't remember the original price?
That’s ok! When listing an item on Poshmark, there’s the requirement to add the original price to the listing. This helps your buyer see what an incredible deal they’re getting! My advice is to be as honest as possible, don’t knowingly list something way higher just to make your list price look good. And it’s totally OK if you aren’t 100% sure of an items original price. Take your best guess. You can also look at the item’s brand website to see what similar items sell for. If you still can’t think of a price, you can enter $0, while it doesn’t help you, it does get your item listed!
If you need more guidance on pricing, you can look at what similar items are selling for on Poshmark by searching for that item itself. This is called “researching comps”. For example, if you’re looking to sell a red Kate Spade bag, search for a red Kate Spade bag on Poshmark and see how many are available. Compare your bag to the ones available. Is yours nicer or in worse condition? Does yours have something extra like a matching coin purse or original tags? Things like that can fetch you more money. Also look at what items have sold for. Do this by clicking the “sold” toggle under “Availability” in the search filter. While everyone might be asking for $100 for their Kate Spade bag, you see that they only sell for about $60. This means you could list yours at $80 and probably end up selling it at $60, but you’d sell it more quickly than the ones listed at $100.
Cheaper is always better, right?
You might think that the quickest way to a sale is pricing something the cheapest. That’s not necessarily the case. When items' prices are too low or the lowest, people often tend to wonder “what’s wrong with it?”. And Poshmark does have a strong bargaining culture, so even if you list something for $5 hoping for quick sale, I guarantee that someone will offer you $3 before someone buys it for $5. My personal rule of thumb for pricing was never to list anything for less than $25 with the full intention to lower prices or accept offers. My personal closet average sell price is $18. Some people have much higher averages because they have more access to desirable items or better brand names. Just remember that no matter what business you’re in being “the cheapest” is not a successful long term marketing strategy, it’s quickly a race to the bottom where the one who wins ultimately loses.
A Few Tips About NEGOTIATING
As I mentioned, Poshmark does have a strong bargaining culture. If that sounds overwhelming, don’t let that get the best of you! Keep in mind a few things:
1) Never take an offer or a comment personally.
I’d say that I sell 80% of my items via the offer feature. In the beginning I use to take it personally if I got a “way low” offer on one of my items. Now, I don’t. It’s just business. People have different views on what’s an appropriate offer. Some people think offering 50% off is a great entry offer. While others think that’s insulting. Just don’t take it personally.
2) Don’t decline offers.
When you get an offer that is too low for you to accept, never decline it. You’re turning customers away! Make a new offer for a few dollars off your asking price. I will go back and forth 3-4 times before I decline an offer. I do eventually decline for my sanity, sometimes we just can’t reach an agreement. I’d say that most sales will successfully happen with 1 or 2 offer exchanges.
3. Three strikes, you’re out.
If you’re not aware, some sellers will block buyers that annoy them. I’m actually pretty sad that this happens, because it looks bad on the Poshmark community as a whole. But, I will add that I have blocked buyers from my closet before. I use the “3 Strikes Policy”. If someone makes an insultingly low offer (for me that’s 30% of the asking price or lower), I counter and move on. But if they do this on three or more items after I have countered or declined their previous offer, I’ll block them. It’s an issue of time for me. There will be some buyers who you’ll never get to an agreeable price with. That’s ok, just move on. Likewise, if someone leaves an insulting comment on one of my items (it rarely happens), I’ll try to respond in a nice way or leave it. But when someone does this repeatedly (like three or more times), I’ll block them. Having a rough system in place like this will help you keep your sanity. But word to the wise, don’t advertise your policy in your descriptions or in your closet, it will scare away your good customers. Like I said, the majority of sales are problem free and the majority of buyers are great, so don’t threaten all of them because of the few.
So, what do you think? Was this helpful in setting prices on Poshmark? I wish I could just tell you what to list all your items at, but that’s ultimately up to you. Price is fairly subjective, so just go with your gut, but use your head to account for those fees, price drops, and offers!
Stay sweet and see you on the 'gram.
Christine aka @girlwhomakeslemonade
Hey! I'm Christine, I'm an entrepreneur and small business owner who has learned by trial and error. I write helpful articles that help you take your next steps in business. Occasionally I like to mix things up and dash in a bit of lifestyle topics. Thanks for being here!