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Poshmark is an excellent platform for getting pre-owned high-value fashion articles. But selling on the platform can be a little tricky. So why sell and earn money only to use it in the same venue when you can try trading directly?
Here’s how to trade on Poshmark: You can trade on Poshmark by reaching out to sellers who are open for trades. Once both parties agree on the articles that will be swapped, they can bundle them for $5, pay each other this minimum and ship the products.
In this article, you will learn why this is better than buying and selling on the app, what steps you need to take to ensure a high response rate and how you can remove tax paperwork from the equation.
But first, should you trade on Poshmark?
Why Should You Trade On Poshmark?
You should trade on Poshmark because you can get rid of old articles in an eco-friendly way, get new items, and avoid doing the paperwork for your taxes.
By trading on Poshmark, you get the following benefits:
- Get rid of old items – This advantage is not exclusive to trading because you can get the same facility when donating to your local thrift store.
- Get articles you’ve never had before – This perk is slightly less accessible to anyone not actively selling their old clothes. But in theory, one could sell their second-hand clothes on any platform and use the money to buy different articles from a thrift store.
- No Tax hassle – This benefit is exclusive to platforms that allow swapping. As long as you can swap items without cashing out dollars, you’re not required to pay taxes or even factor them into the exchange.
You can avoid tax complications by swapping items on almost any social media marketplace like the Facebook Marketplace or even Craigslist.
So why should trading on Poshmark be a priority?
If you care about buying ‘posh’ items, then staying on Poshmark gives you the option to swap your branded clothes for other brand-name articles. It would be unlikely on most other platforms.
Over $100 Million worth of inventory is uploaded to Poshmark every week, and this is quite significant given that the company has a fraction of the user base of Facebook. Poshmark is much more designer-focused than the Facebook marketplace, where you can quite literally list an RV and a car crash dummy in the same catalog.
Can You Trade Any Item on Poshmark?
You cannot get any item in a trade unless its seller is also interested in something in your closet. If a person is not willing to trade, you’re left with selling your items on Poshmark and then using the funds to either make an offer or directly purchase the item you want.
As long as both parties are willing, they can trade any articles or bundles of items from their respective inventories.
5 Steps to Trade On Poshmark
If you want to start trading on Poshmark, you must obtain the other party’s consent. Reach an agreement, then execute the deal. This requires taking the following steps:
1. Figure Out What You Want to Give and Receive
Before you can trade products, you need to be sure which one of your articles you’re willing to give away. Things can go a lot smoother if your entire closet is open for trading. Once you’re past deciding what you can give, you need to find out what you want. And the item you want will be listed with the seller profile.
2. Approach the Seller
Click on the seller profile’s message button to send a text to the seller of the item. Simply asking whether they are interested in trading is enough. Don’t propose the exact trade because the seller might not be interested in an exchange.
3. Discuss the Exchange
Once the seller shows interest in trading articles, you can discuss what you are willing to give. Here, it can be counterproductive to have a closet where only some articles are up for trading. That’s because the human mind wants to do what it is told not to.
But you can use reverse psychology to your advantage by pretending that only some items are tradable while the rest are strictly available for cash. This can make the other party feel like they won.
4. Bring the Price Down to $5, Mutually
This is a crucial part because Poshmark does not allow you to bring down the price of your articles to $0. But as long as you both bring the prices of the items you intend to trade down to the bare minimum, you exchange the articles you like and an equal amount of cash.
You’ll both be out the 20% Poshmark fee but, at this price, it’s only a dollar anyway.
Because you both have to pay for fees and shipping, trading is usually beneficial only for high-dollar items.
5. Ship the Products Mutually
Finally, you both need to ship products at nearly the same time. If you don’t, there is a risk that the trade can become an extremely underpriced purchase from one party.
Trading on Poshmark definitely required an element of trust so you should look for established sellers with good feedback before suggesting a trade.
Is It Risky to Trade On Poshmark?
Since both buyers and sellers can get scammed on Poshmark, trading doesn’t make any party immune to getting scammed. A degree of caution and critical thinking is required when trading on the platform.
Because you’re the initiating party, the other party isn’t actively seeking you out to take advantage of you. This decreases the odds of getting scammed but doesn’t eliminate them. However, the party you’re approaching might be more cautious because they might think you’re looking to order the item at a deep discount without giving anything in return.
Your profile and initiating message must be legitimate if you’re hoping for a reasonable response rate.
If you’re going to be trading often, be sure to educate yourself about common Poshmark scams so you can keep your hard-earned money.
Poshmark Trading: The Message to Send
When you approach a seller with a trade offer, the first message should be along the following lines:
- Hey, I love [insert product reference] you listed. Would you trade it for something similar in my closet?
- Hi, are you open to trading? Anything in my closet is game.
- Hey, what in your closet is up for a trade?
- Hey – do you make trades? You might like something in my closet.
Poshmark Trading and Taxes
You don’t need to pay taxes if you spend the earnings from your Poshmark account on shipping. As long as your paperwork can show that you make no profit on Poshmark, you don’t have to pay taxes.
Recap: Trading on Poshmark
Trading on Poshmark is slightly risky but worth it if you are reasonable with your requests and due diligence. It can be an exciting game-changer for your closet.