Australian users of resale platform Poshmark have been left stunned by the company’s decision to close its local operations next week, with sellers telling SmartCompany they were given too little notice.
The retail marketplace told its community about the impending withdrawal from Australia, the UK and India on Thursday, October 19, citing a desire to re-focus on its core North American markets.
Australian users were told they have until October 25 to use ‘Posh Credits’ to buy items on the platform, and until November 1 to redeem Poshmark earnings through the app or website and send out any unshipped items before the orders are cancelled.
Sellers won’t be able to create new listings or ship any new orders from October 26 and Poshmark has advised them to download a copy of their sales report before November 1.
This quick time frame has upset some local sellers, who received an email from the company in the early hours of Friday morning giving them only days to resolve any final orders from their Poshmark ‘closets’.
The email, seen by SmartCompany, thanked sellers for being part of the Poshmark community and outlined the key dates for the wind-down of the local operations.
“On November 2, Poshmark Australia will close, and buyers and sellers will no longer be able to access the marketplace,” the email said.
The news came as an “absolute shock” for one Australian Poshmark seller, who told SmartCompany they have spent hours setting up their Poshmark profile, maintaining their ‘closet’ on the platform with professional photos and listings, responding to buyers, packing and shipping orders and connecting with other ‘Poshers’ to grow their profiles.
Poshmark launched in Australia in February 2021, allowing local buyers and sellers to trade both new and secondhand products across a number of categories, including fashion, beauty, pet accessories, and lifestyle and homewares.
The seller who spoke to SmartCompany had even reached ‘Ambassador’ status on the platform, which required reaching a series of milestones including a minimum of 5000 self-shares and community shares, at least 50 items for sale, and at least 15 items sold. They also hosted ‘Posh parties’.
“I started using the Poshmark platform as a way to clear out and downsize my wardrobe,” they said.
“I wanted other people to be able to get some wear out of my preloved items, instead of the clothes ending up in the landfill.”
The seller says they were disappointed with the lack of notice from Poshmark, and they know of other sellers who share this view.
“To be told less than a week beforehand that the Australian marketplace will be shut down and all our hard work and closets wiped is frustrating,” the seller told SmartCompany.
“As a result, I have seen a lot of Poshers drop their prices and try desperately to clear out some of their closets before the marketplace closes and many have jumped onto other platforms in order to start their closets again from scratch.”
But, the seller feels there is simply not enough time.
“It takes time to package the order, send it out and for the money to be transferred into the sellers’ account,” they said.
“Less than a week is not enough time for all the hard work and countless hours Poshers have put into the platform. As a result, I haven’t worried about trying to sell more of my items as there is just not enough time left.”
The Poshmark platform was easy to use and navigate, says the seller, who laments the closure at a time when finances are tight for many Australians.
“I’m not sure why Poshmark has decided to close its Australian marketplace and I believe this is a mistake especially as more and more Australians are looking for cheaper items of clothing especially with the cost of living rising,” they added.
SmartCompany asked Poshmark about the relatively short notice given to Australian sellers but a spokesperson for the company did not answer the question directly.
The spokesperson also declined to answer questions about the number of Australian Poshmark users or how many unshipped items Australians users have.
According to Inside Retail, the now South Korean-owned company recorded around 500,000 active users in the UK, Indian, and Australian markets in the past month.
However, the spokesperson said if individual Australian users have not redeemed their Poshmark balance by November 1, they can contact the company via email for help.
“While shutting down our marketplace in Australia was a difficult decision, we are incredibly proud of what our community has accomplished,” they said.
“We are grateful for the support of everyone in Australia who joined Poshmark to share their style and become a part of our community.”
Poshmark founder and CEO Manish Chandra shared similar sentiments in a company blog post announcing the impending closure, which was published on October 19.
Chandra said the “tough” decision will allow the company to “focus our energy and increase our investments in our core markets, the US and Canada”.
“Our mission has always been to put people at the heart of commerce,” Chandra said.
“From the start, we envisioned a vibrant community that would share their style and create the largest network of shoppable closets around the world.
While this mission “remains the same”, Chandra confirmed Poshmark will be closing its Australian, UK and India marketplaces on October 26.
“I know this is especially hard news for those of you across the globe who have come to know and love Poshmark – please know that I’m incredibly grateful for you and for the community that we’ve built together.
“We hope to be back at some point in the future.”
In light of the Poshmark closure, fellow marketplace eBay said on Tuesday morning it wants to “support the Poshmark community” with a number of “offers” to entice both pre-loved fashion buyers and sellers to its platform.
Ebay says it will offer Poshmark sellers a free six-month Feature store subscription as well as 0% variable final value fees on their first five sales this year. For Poshmark Ambassadors, eBay wants to speak to them directly about “how we can support and set up your business on eBay”.
Poshmark buyers with expiring credits can claim a $20 coupon from eBay Australia but contacting the company via Instagram DM. New buyers can claim a $10 credit off their first purchase on eBay if they spend at least $35.
Editor
Eloise is an experienced business journalist and editor, who has held senior editorial roles at SmartCompany since 2014. Prior to joining SmartCompany, Eloise was news editor at Books+Publishing, the trade press for the Australian book industry. Eloise has degrees in media and communications, marketing and business management, and political science. You can follow her on LinkedIn, and Twitter at @ellykeating.
