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You’ve made your first sale on Poshmark, now what? If you’re anything like me you were probably expecting to have money in your bank account already.
That’s how getting paid works, right? They get the item and you get money?
Well, unfortunately, Poshmark makes it a little more time-consuming than that.
While getting paid on Poshmark isn’t overly complex, it can make new sellers a bit nervous when they don’t have access to their funds.
Lucky for you, we’ve been selling on Poshmark long enough that we can walk you through the process:
Getting Paid On Poshmark – Overview
After you sell an item and ship it off, the buyer has up to three days from the time of delivery to accept the item. Once they receive and accept your item, your funds will be released into your Poshmark account. You can then choose to move those funds over to a bank account or have them sent as a check via regular mail. If a buyer forgets to accept your item, Poshmark will automatically release your funds 72 hours after the time your package was delivered.
How Poshmark Pays You – Step By Step
- You list an item
- A buyer purchases your item
- You package the item and take it to the post office
- The item is delivered to the buyer
- The buyer accepts item or 72 hours pass from the time of delivery (if a return is not requested)
- After rating (or the 72-hour rating timeout) your funds are released to your Poshmark account
- You choose to have the funds transferred to bank account or sent by check via mail
How to View Your Pending Balance on Poshmark
Now, when you get “paid” on Poshmark, they’re not sending you a check. In fact, they’re not even automatically adding it to your checking account.
Instead, they add it to your balance on the app.
In my opinion, the reason that Poshmark does this is to try and keep the money on their app. You have the option to use your balance to shop on the app which allows Poshmark to keep extracting their fees.
However, you can check your balance at any time on the app and transfer it to your bank account.
(Note: Our credit balance is from sharing our Poshmark Invite Code)
Here’s how to do it:
- Open the Poshmark app
- Click on your closet name in the bottom right corner of the app
- Scroll down to where it says “My Balance” or Click on the green money icon in the top right corner
- The page will show your redeemable and pending balance, as well as Poshmark credits
How Your Poshmark Balance Works
Your “redeemable balance” is the money that you can move over to a bank account. Money from sales that have not yet been released to the seller is referred to as your “pending balance.” Poshmark credits can be earned by Poshmark members and used to pay for purchases on the platform; however, you cannot redeem Poshmark credits for actual money.
Do You Have To Pay Taxes On Your Poshmark Earnings?
Poshmark does take care of sales tax for buyers. Whenever someone purchases an item on Poshmark, sales tax is charged, and Poshmark takes care of the rest. However, when it comes to income, Poshmark does not provide assistance. The platform (and I) recommend that sellers find an accountant to handle these issues.
Returns and How They Affect Your Balance (and how to avoid them)
Although all sales are final on Poshmark, buyers can request a return if they feel that the item they received does not match the description in its respective listing. Also, if they were sent the wrong item altogether, users can request a return.
After a return is requested, buyers usually submit photos and information about the item in order to show how it didn’t match the description. Poshmark will evaluate this information and notify the buyer and seller of the outcome via email. If the return request is approved, Poshmark will send a pre-paid label to the buyer, who will then return the item to the seller. Once the seller receives the item back, Poshmark will send the buyer a full refund. If the return is denied, funds will be released to the seller.
In order to avoid returns follow these guidelines:
- Make sure that you describe your items accurately
- Remember to mention any flaws or wear in your description (avoid manipulating lighting settings in order to hide flaws in your item)
- Try to take photos in well-lit areas so that the color of your items shows up well
- Package your items well and make sure that they are not moving around too much in your package, as this can cause damage
- If you’re packing a fragile item, take extra care to wrap it up safely. You can watch YouTube videos on how to package your particular item. It may be necessary to package your item in a box within a box.
How To Get Great Ratings on Poshmark
Everyone wants to receive good ratings on Poshmark. The platform keeps an average of the ratings that you receive and this, in part, determines whether or not you can receive and maintain Poshmark ambassador status.
Being a Poshmark ambassador does come with a few perks, such as being able to test some new features before other Poshmark members and having access to certain contests. In addition, Poshmark will advertise your closet on the app, so more people will follow your closet. In order to maintain Poshmark ambassador status, an average of 4.5 stars needs to be maintained. To do well on the platform, your best bet is to aim for high ratings from sellers.
How the Rating Process Works
Once your buyer receives your item, Poshmark will send them a notification to accept and rate the transaction. Buyers can give a rating of 1 to 5 stars depending on how well they thought the transaction went. Buyers can also leave an optional comment, which is referred to as a “love note.” In addition, if a buyer gives less than five stars, they can choose from a list of things that the buyer could work on, such as shipping speed.
Here are some tips that will help you turn your sales into good ratings:
- Package your items nicely using tissue paper (the goal is to make your package appear attractive when the buyer opens it)
- Protect your item by packaging it up safely to avoid damage
- Consider adding a thank you note and stickers to your package
- Ship your items out on the same or the next day(buyers like receiving their items quickly)
- Let your customer know if there is going to be a shipping delay of some kind or if there’s a holiday when the post office will be closed. Customers will appreciate the heads up on this information and remember your thoughtfulness.
Overall getting paid on Poshmark is a pretty simple process that just takes some getting used to. If you sell honestly, you’ll do well on the platform. Make sure to always describe your listings accurately so you can avoid returns. Take some extra care when packaging and shipping your items, and you’ll be able to receive great ratings on Poshmark.