Is Selling Clothing On Poshmark Profitable

Poshmark Fees for clothing Sellers

Poshmark takes a flat 20% commission on all clothing sales over $15. On sales under $15, they take a flat $2.95. For a $50 jacket, that's $10 in fees (20%). For a $12 shirt, that's $2.95 in fees (nearly 25%). You also lose 2-3% to payment processing through Poshmark's system, though this is built into their commission structure. No additional shipping fees exist—Poshmark provides prepaid USPS Priority Mail labels.

Profit Margin Benchmarks

Good margins: You source items for $5-10 and sell for $35-50, netting $18-35 after the 20% Poshmark fee. That's 50-70% gross margin. Average margins: You source for $10-15 and sell for $30-40, netting $15-22 after fees. That's 40-55% gross margin. Poor margins: You buy at wholesale ($15-25) and sell at $30-40, netting only $5-12 after fees. That's 15-30% gross margin—barely worth your time.

Verdict: Is It Worth It?

Poshmark is profitable only if you have cheap inventory. If you're sourcing from thrift stores, your closet, or estate sales, yes—you can make 50%+ margins and decent money at scale. If you're buying new or wholesale inventory to resell, the 20% fee crushes your margins and you're better off on other platforms like eBay or Amazon. The platform works for decluttering, not for building a sustainable resale business on new merchandise.

Frequently Asked Questions