Poshmark has revolutionized the way people buy and sell fashion items online. The social commerce platform allows users to create their virtual boutiques and connect with buyers and sellers from around the world. If you’re a seller on Poshmark, one of the most critical aspects you’ll want to understand is how and when you get paid. In this detailed blog, we will discuss when and how sellers get paid on Poshmark. So let’s start:
How Poshmark Pays You – Step By Step
- Listing an Item: The process begins when you list an item for sale on Poshmark. You provide details about the item, including photos, descriptions, pricing, and shipping preferences.
- Buyer Purchase: When a buyer purchases your listed item, the payment is processed through the Poshmark platform. Poshmark handles the transaction to ensure a secure and seamless experience for both parties.
- Packaging and Shipping: As the seller, it’s your responsibility to package the item securely and take it to the post office for shipment. Poshmark provides a prepaid shipping label for most transactions, making it convenient for sellers.
- Item Delivery: The buyer receives the item, and the tracking information confirms its delivery status.
- Buyer Acceptance or 72-Hour Window: After the item is delivered, the buyer has the option to accept the item as described or initiate a return. If the buyer takes no action within 72 hours of delivery, the funds are automatically released to your Poshmark account.
- Rating and Funds Release: The release of funds is contingent on the buyer’s rating or the 72-hour rating timeout. Once the buyer accepts the item or the timeout elapses, your earnings from the sale become available in your Poshmark account.
- Transfer Funds: From your Poshmark account, you have the option to transfer your earnings to your bank account or receive a check by mail.
How to View Your Pending Balance on Poshmark
When you receive payments on Poshmark, they are not automatically deposited into your bank account. Instead, Poshmark adds the funds to your balance within the app, which you can later transfer to your bank account. Here’s how to view your pending balance:
- 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 display your redeemable and pending balance, as well as any Poshmark credits you may have.
How Your Poshmark Balance Works
Understanding your Poshmark balance is crucial. Your “redeemable balance” is the money that you can transfer to your bank account. On the other hand, your “pending balance” consists of funds from sales that have not yet been released to you. Poshmark credits can be earned on the platform but cannot be redeemed for actual money; they are used for purchases within the app.
Do You Have To Pay Taxes On Your Poshmark Earnings?
While Poshmark handles sales tax for buyers, sellers are responsible for managing their income tax. Poshmark does not provide tax assistance for sellers. Therefore, it’s recommended that sellers consult with a qualified accountant or tax professional to address tax-related matters, including reporting and paying taxes on their Poshmark earnings.
Returns and How They Affect Your Balance
Although Poshmark’s policy states that all sales are final, buyers can request a return if they believe the item received does not match the listing’s description or if they were sent the wrong item. Returns can affect your balance, as Poshmark may refund the buyer from your earnings. To reduce the likelihood of returns, ensure your listings are accurate, provide detailed descriptions, and respond promptly to buyer inquiries.
Poshmark offers a straightforward process for sellers to get paid for their items. By understanding how Poshmark handles payments, managing your Poshmark balance, and staying informed about tax responsibilities, you can make the most of your selling experience on this popular fashion platform.