Poshmark vs thredUP: Where Should You Sell Online?

    aai1.jpg

    Whether you’re just clearing out your wardrobe or trying to make serious money, platforms like Poshmark and thredUP make it easier than ever to sell online.

    Both of these apps are wildly popular with people looking for a deal. They also make it pretty easy for sellers to list items online. The question is, which should you choose?

    To find the answer, we decided to study both platforms in detail and make a head-to-head comparison. Keep scrolling to see who wins in Poshmark vs thredUP, and find out how to make more sales on either app.

    Which App Is Better for Selling Online: Poshmark or thredUP?

    Both Poshmark and thredUP are startups that help people to buy and sell clothes online. So, what’s the difference? Before we dive into the details, let’s get to know these apps a bit better.

    Poshmark

    Founded in 2011, Poshmark is a social marketplace that connects sellers with buyers.

    Available on iOS and Android, the app has a focus on fashion — both new and used. However, you can also find departments for beauty and home decor products, and even pet accessories.

    thredUp

    Billed as an online thrift and consignment store, thredUP is another big name in second-hand fashion.

    Also available on both iOS and Android, this app offers more than a simple marketplace. The company takes a hands-on approach to reselling clothes, which is popular with buyers and sellers who are pushed for time.

    Poshmark vs thredUP: A Head-to-Head Comparison

    Both Poshmark and thredUP pay out a lot of money to sellers every year. But to figure out which one is right for you, it would be nice to have a clear comparison. Luckily for you, that’s exactly what is coming up next.

    Signing Up

    The different approaches of these two rivals become clearly apparent as soon as you sign up.

    Poshmark feels like another version of eBay or Amazon. You just fill in your name, your address, and then you can start listing items for sale. You can easily complete the process in a few minutes.

    The sign-up process with thredUP involves ordering a ”Clean Out” bag. This is a package that you fill with items to sell, and then send it back to thredUP. Once again, it only takes a few minutes.

    Both apps make it easy to get started — assuming you are in the U.S. or Canada. If you live elsewhere, thredUP is not an option. In contrast, Poshmark also operates in Australia and India.

    aai2.jpeg

    Listing Items for Sale

    For anyone who has sold something online before, the process of listing items in Poshmark will feel familiar.

    The platform invites you to add photos and a product description, choose a product category, select relevant styles, and name your price. If you’re serious about selling, you can also utilize basic inventory features like SKU codes.

    In contrast, thredUP essentially handles the listing part. You simply send off your items in the aforementioned Clean Out kit, and wait a few weeks for the company to rummage through your stuff. Around half of all garments are chosen for sale, while the other half are rejected.

    When you sign up for your Clean Out bag, you can choose what happens to the rejects: you can either pay for them to be returned, or thredUP can recycle them for you.

    Both systems can work well, but they are aimed at two different groups of people.

    Committed e-commerce sellers will love the control that Poshmark provides. For anyone who just wanted to make a few dollars from unwanted clothes, thredUP takes away all the hassle.

    Product Types

    In very general terms, both Poshmark and thredUP focus on fashion. But each site has a subtly different list of accepted items.

    Poshmark will allow you to list:

    • Women’s clothes
    • Men’s clothes
    • Children’s clothes
    • Accessories (incl. jewelry, handbags shoes)
    • Personal care products
    • Home decor items
    • Pet accessories

    In comparison, thredUP is much more narrow-minded. The company is only willing to accept:

    • Women’s clothes
    • Children’s clothes

    Even if you stick to these categories, your clothing items could be rejected if they are out of season or they are not in good condition. Garments from big brands like Mercari, Gucci, and J.Crew are the most likely to make the cut.

    aai3.jpeg

    Selling Process

    Listing products is one thing — but what happens when your item sells?

    If your item is listed on Poshmark, you will need to package it up, print off a prepaid shipping label, and take it to the post office. Shipping costs are covered by the buyer, who pays a flat rate fee, and your package is usually delivered within 1–3 business days.

    Once the item is received by the buyer, they have three days to accept it or send it back. Poshmark has a policy of no refunds unless the item doesn’t match the description or it never ships.

    With thredUP, the entire selling process is handled by the company. There is zero seller input required after you send off your Clear Out kit, although you can adjust the selling price if you want to.

    If thredUP is able to sell your items, your share of the sale is simply added to your account.

    aai4.jpeg

    Profit and Commission

    The amount you can earn from selling clothes very much depends on which of these two platforms you choose, and a couple of other factors.

    On Poshmark, you have the ability to set your own desired selling price as you upload listings. At the same time, the platform gives you a live estimate of how much you will receive after commission.

    The commission structure here is pretty straightforward:

    • Items under $15 = $2.95 flat fee
    • Items over $15 = 20% of listing price.

    Those of you with good math skills will notice there is a sweet spot there, between $11 and $15. You will also notice that the cut could be quite big on the cheapest and most expensive items.

    While Poshmark calls itself a marketplace, thredUP can be described as a consignment store. And because they do all the hard work, they get to keep a lot of cash.

    Here’s a breakdown (by listing price) of the percentage of each sale you will receive:

    • $5.00–$19.99 = 5%–15%
    • $20.00–$49.99 = 15%–30%
    • $50.00–$99.99 = 30%–60%
    • $100.00–$199.99 = 60%-80%
    • $200.00 and above = 80%

    This structure means you actually get a comparable cut on high-ticket items. But as you descend down the price scale, your cut diminishes.

    You will also notice a percentage range connected to each pricing tier. That’s because the amount you receive will vary somewhat depending on the amount of demand for the item being sold. For instance, a trending jacket will give you a bigger payout than something more classic.

    Payout Options

    If your items start selling, both Poshmark and thredUP give you a couple of ways to cash out.

    Poshmark lets you withdraw the profits from any item three days after it has been delivered. You can receive the money via a direct deposit to your bank account, or you can request a check.

    While thredUP definitely encourages you to use your earnings to buy items on the platform, you can also cash out or spend the money elsewhere.

    Payouts are made through PayPal ($0.25 fee) or Stripe ($0.25 + 1.5% fee), and they take around 1–3 days.

    Alternatively, you can use your credit to shop with one of thredUP’s many partners. The line-up includes names like GAP and Hollister, and in most cases you get bonus credit as part of the deal.

    aai5.jpeg

    Should You Sell on Poshmark or thredUP?

    Phew, that was quite a lot of information to take in. Let’s take a breath, and break it down.

    With full control over your listings, Poshmark is a great platform for committed sellers. Yes, you have to ship stuff yourself and take photos — but you get a nice big slice of the sale price. Plus, you can sell anything you want to in several categories. It’s like a trendy version of eBay, with a focus on wearable items.

    In comparison, selling on thredUP is like taking your used clothes to the thrift store. The rewards are smaller, but it doesn’t take much of your time. The only major downside is the restriction to high-quality women's fashion and kids’ clothing, but you do get a bonus on your resale profits if you shop with partner brands.

    Tip: Use Poshmark if you want maximum control and profit. Use thredUP if you want minimal hassle.

    aai6.jpeg

    Tips for Making More Sales

    Whichever of the two platforms you choose, you will still need to make some sales to earn your profit. Check out these hot tips that can help you maximize your earnings:

    Sell at the right time — If you have a winter jacket you want to sell, don’t try selling it in May. Seasons drive demand, and you will get a higher price if you wait until the optimal time of year.

    Give your items some TLC — While it might be tempting to sell clothes as you find them, it’s usually a good idea to give them a little TLC, especially if you want to make the grade at thredUP. Shave the pilling off your sweaters, use a lint roller, replace missing buttons, and use Tide on any stubborn marks.

    Write descriptive titles — On Poshmark, you have the opportunity to promote your items with a title. If you want to catch the attention of shoppers, be sure to add brand names and descriptive terms that people might be searching for.

    Take great product photos — People shop with their eyes, so successful selling on Poshmark involves photography. Make sure your product is well lit, and try to reduce background distractions.

    aai7.gif

    Pixelcut: Background Removal Made Easy

    If you want to take better photos of your Poshmark items, Pixelcut should definitely be on your phone.

    Our app lets you cut out any item from the background with a snap and a quick swipe. You can then add your own backdrop, along with text and stickers. It’s a really easy way to produce professional-quality product photos.

    As used by ten million small businesses, Pixelcut also helps you create eye-catching social media posts, flyers, posters, profile photos, and more.

    Want to give it a try? Download the app today to upgrade your e-commerce game!

    Ready to start creating with Pixelcut?

    Join more than 10 million small businesses, creators and entrepreneurs that use Pixelcut to grow their business.