Issue 35: The quirky selling app gets a few upgrades

I can’t count two numbers at the same time (but only if I get to redo the episode) …

Ok, I had to redo this week’s episode and by association, issue 35 of the newsletter, which set off a chain reaction that I’m still feeling the effects of. So the joke about the incorrect issue number is completely moot, as is most of what I said on 484, before I had to go back and re-record it.

This is a first for me as a podcaster and newsletter editor. I’m leaving the original text of issue 35 intact, earmarked with a big strikethrough, both for historical purposes, and because I’m not one to waste good content.

It wasn’t until after I finished recording episode 484 that I realized I referenced this week’s newsletter as “issue 34.” I think my brain automatically likes to sync numbers that run in tandem. Thus, to clear up any confusion, this is issue 35, the one that talks about Poshmark’s recent changes and enhancements. If you’re looking to wax emo about the state of dating, that’s issue 34 from last week. Word to the wise, if you’re launching a podcast and a newsletter, either start them at the same time or if you’re in my situation, and 440+ episodes ahead of your newsletter, avoid mentioning numbers altogether if you can. If you’re a glutton for punishment, you can also back-write 440+ issues, then renumber every existing issue to match up with their audio counterpart.

There is a simpler fourth alternative that I considered briefly; namely rerecording the episode or splicing in a separate take of “ISSUE 35” that would have stuck out like audio duct tape. But I’ve decided to leave it be and let this quirky wrinkle provide fodder for this introductory paragraph. I’m happily letting go of the last shred of perfectionism and making lemons into lemon-flavored beverages.

-John

Moving Forward 484: Poshmark update: shipping, and the new same seller fee structure

There’s going to be more some news and less quirk in this issue as is the case when I do these types of episodes. But I’ll try to throw in a sarcastic quip here and there. Without further ado, let’s dive in.

QR shipping codes

One of my favorite features on Poshmark is the ability to use a QR codes to generate shipping labels. This is also available on PangoBooks, a seller app for books.

The QR code feature was released a little over two years ago, no doubt resulting in thunderous shouts of joy from a growing number of printer-less sellers around the world. Traditionally, when you get an order, a shipping label comes into your inbox. The only thing you need is a printer … paper … ink … cables … and electricity … which, of course, presumes you’ve paid your electrical bill. Needless to say, the old school way of shipping packages was quite presumptuous.

As an alternative, the QR code feature allowed you to take your phone to the post office, and generate a label by having a USPS employee scan and print it for you. This was great except that it was limited to standard business hours, and you would roll the dice on wait times with each visit.

Speaking of waiting at the post office, the USPS kiosk is a favorite institution of mine. At select locations, you can bypass the line and scan your packages to confirm shipment before sending it on its merry way. Since most people still haven’t discovered this gem, it’s usually not very crowded.

Now, I know what you’re thinking and I had the same thought too. Why not scan your QR code at the kiosk and get your label that way. In 2022, I tried that and all I got was a beep and no label. The ecommerce equivalent of mashing peanut butter with chocolate would have to wait until mid-2024.

Today, the kiosk has a shiny new “scan QR code for label“ button. You can now take your package to the post office anytime (provided it’s a 24-hour access location), scan the code, get a label, and drop it off into a package tumbler.

Um, everything I talk about below is scrapped, as of yesterday (Oct. 24th, 2024). The Posh Pass Beta is no more and the seller fee structure is back to its old self of 20% of the final transaction price (sans sales tax and shipping). You can read more about that here.

I’ll conclude by looking at the bright side. The section of my book on Poshmark seller fees is now current again. If only all edition updates could be this easy.

Posh Pass Beta

Speaking of shipping, Poshmark is currently underway with a beta program for ambassador level sellers. From Oct. 3rd through Dec. 31st, shipping will be discounted to $5.95 for buyers, with Poshmark eating the difference. This will hopefully drive more sales, especially as we head into the holiday rush.

A minor caveat: if you’ve discounted shipping to say $4.99 or are offering free shipping to incentivize a sale, Poshmark will default to the lower of two; meaning the buyer will get the most advantageous shipping rate.

What I don’t know is whether you eat the cost of discounted shipping based on the normal rate or the Posh Pass rate. I’m guessing it’s the former but if any of you know, let me know because as the not so old acronym goes IYKYK.

I also don’t know whether this will continue in some form beyond this year. As this is a beta test, it’s too early to tell. Only Poshmark would know at this time, necessitating a new acronym: IPKPK.

A quirky new seller fee structure

Traditionally, Poshmark’s seller fee has been a flat 20% based on the listing (or sold) price; not counting shipping and taxes. There was also a flat $2.95 fee for items sold under $15. The fees are deducted from sales proceeds and has been one of Poshmark’s differentiators: a clear, simple fee based on closed sales. There’s no standing fee to be on the platform, and no hidden fees, including listing or payment processing fees. While 20% may seem high, I always preferred a straight forward, simple fee to deceptively lower ones that creep up on other platforms. Moreover, the listing engine allows you to see the projected proceeds based on your list price. Clean and simple.

As of October 3rd, this has changed. Poshmark now takes 5.99% from each sale plus a $1-$2-$3 simple fee depending on the sales amount. For items under $15 the additional fee is $1; $2 for items sold between $15 and $50; and $3 for items over $50. While the new structure means lower fees for sellers, it’s a little trickier to calculate (i.e. requires math) since the 5.99% is off the entire sales transaction, including tax and shipping. Thus, when you create a listing, the engine will show you an estimated net earnings since sales shipping and tax can vary.

To illustrate:

Say you list an item for $100 and it sells for $80 based on a negotiation or offer.

Under the old structure, the fees would be:

• $80 × 0.20 = $16.

Thus, you would receive $64 in net proceeds as of the transaction closing; assuming no seller-provided shipping discounts.

Under the new structure, the fees would be 5.99% of the total sale, including shipping, tax, plus $3. Assuming a current $7.97 shipping rate (and assuming it’s not under a Posh Pass beta rate) and 7% sales tax (average for illustration purposes), the total cost of the transaction would be:

• $80 + (0.0599 * $80) + $7.97 = $93.57.

Thus, the seller fees would come out to:

• $80 × 0.055 + $3 = $8.50.

Your net proceeds would therefore be $71.50 at close, which is more than $64 under the old fee calculation.

You can see more illustrations of the old vs new fee structure here.

Even though it’s not a straightforward calculation, the math should work out for sellers to recoup more of the sales proceeds. In other words, more math but more money in the bank.

Catch this week’s episode on Spotify.

Moving Forward is also available on Apple Podcasts, Amazon Music, iHeart, CastBox, Pocket Casts, Spotify for Podcasters (formerly Anchor), and Audible.

Learn more about Poshmark:

• The new fee structure.

• What the fees cover.

• Nevermind, it’s still the same (read about it here)!

• Check out The Poshmark mini-series roadmap, including prior episodes and write-ups from the legacy website.

• The Poshmark Guide for Individuals and Small Businesses (Paperback, Kindle, Audible).

• The Poshmark Guide for Individuals and Small Businesses (Apple audiobooks).

• The Poshmark Journal for Individuals and Small Businesses.

Hacks

QR codes and the art of juggling multiple orders

So you’ve discovered the joy of QR codes and ditching your printer. But, “wait a minute,” you say. I get multiple orders on the regular. How can I manage QR codes with > 1 package.

First, know that if you regularly get multiple orders, you’re in a very fortunate position. This isn’t a first world problem, it’s a 0.5 problem to have.

Second, you can still make QR codes and 1+ packages work. You just have to be a little more strategic and mindful with your labels.

The simplest hack is to jot down a unique identifier on your packages. The most obvious one is the Poshmark username of the buyer since that is also on the printed label. Alternately, you can write the last four characters of the QR code since each has a unique identifier. From there, you simply match the right label to the correct package before shipping out.

Available now at my bookstore on Pangobooks

This has nothing to do with this week’s theme but it’s a funny title that I had to read in business school.

Quirky reads 📚

Speaking of good books, here are some titles I’ve been reading lately.

[Affiliate disclosure: these are affiliate links to Amazon through which I earn a commission from qualifying purchases.]

• Superman: Emperor Joker: The Deluxe Edition by Jeph Loeb (*)

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Books

I wrote most of these so spruce up your home library and look smart in the process.

• The Poshmark Guide for Individuals and Small Businesses (Paperback, Kindle, Audible) 

• The Poshmark Guide for Individuals and Small Businesses (Apple audiobooks)

• The Poshmark Journal for Individuals and Small Businesses

• The Corporate Cliches Adult Coloring Book

• I Am a Professional Metalhead (audiobook) (Audible affiliate link) written by Angelo Spenillo, narrated by John Lim

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