Etsy and Poshmark have emerged as two of the most popular online marketplaces, providing individuals and small business owners ample opportunities to sell their products. But when it comes to profit potential, which platform reigns supreme? This comprehensive guide examines key factors to determine if Etsy or Poshmark is better suited for your money-making ambitions.
Fees and Commissions
One of the most critical considerations is the fee structure on each platform. After all, the less you pay in commissions and fees, the more profit you stand to make.
Etsy charges a 5% transaction fee when a product is sold, along with a listing fee of $0.20 per item. There is also a payment processing fee of 3% + $0.25 per order. This means on a $50 product, Etsy fees would equate to around $3.
In contrast, Poshmark takes a flat commission of 20% on sales over $15. For sales under $15, the commission is $2.95. With Poshmark‘s higher commission percentage, fees on that same $50 item would amount to $10.
Verdict: Etsy‘s lower transaction fees allow sellers to earn more per sale.
Allowed Product Categories
Etsy permits a broader range of products, including handmade, vintage, and craft supplies. As long as items meet Etsy‘s guidelines for quality and originality, almost anything handmade or vintage can be sold.
Meanwhile, Poshmark strictly focuses on apparel and accessories. New and used clothing, shoes, jewelry and beauty products make up the majority of listings. Some home goods are permitted, but the options are limited.
This makes Etsy significantly more versatile and flexible in what you can offer buyers. Poshmark‘s narrow focus limits product selection.
Verdict: Etsy accommodates a wider array of product types.
Setting up Shop
Opening a shop on Etsy involves listing your shop policies, creating listings, and customizing your storefront. Expect the setup process to be in-depth with ample branding and design options for showcasing your products.
In contrast, Poshmark makes listing effortless. Simply snap a few photos on your phone and add a description. Minimal customization is available beyond building your closet and personal profile.
For those short on time or desiring a simplistic selling platform, Poshmark removes hassle and barriers during onboarding. Etsy expects more upfront effort in opening shop, but offers greater creative control.
Verdict: Poshmark‘s simplified setup gets sellers operating faster. Etsy provides more branding control.
Exposure and Marketing Capabilities
With over 90 million buyers and growing, Etsy drips with market potential thanks to an aggressively expanding customer base of art and craft enthusiasts.
Competition is fierce however. Etsy shops must master marketing tactics like SEO optimization, social media engagement and sales promotions to stand out from over 5 million other sellers vying for attention.
Poshmark inhabits a smaller niche of 70 million registered users. But within the resale fashion space, it reigns supreme. The highly engaged community participates in sharing listings and Posh Parties to drive discovery and conversions.
Verdict: Poshmark makes it easier to be discovered. But Etsy‘s far-reaching audience offers more profit possibilities.
Shipping and Logistics
On Etsy, the seller handles packaging, labeling and shipping tasks. Multiple carrier options provide domestic and international shipping solutions. Discounts are given for U.S. Priority Mail.
Poshmark tremendously simplifies logistics by emailing pre-paid shipping labels to apply to packages. Sellers then drop off parcels at any U.S. mailbox or scheduled pickup. Shipping is restricted within the U.S. and Canada.
So Etsy shipping incentivizes higher profit margins through reduced domestic rates. Yet Poshmark makes fulfillment far simpler through standardized labels.
Verdict: Poshmark streamlines shipping, increasing efficiency for high volume sellers.
Payment and Payouts
Etsy authorizes payments from buyers instantly. Funds are direct deposited into your bank account every weekday.
Poshmark releases earnings once buyers receive and "accept" orders. Payout happens via direct deposit each Monday.
Etsy also supports more payment methods, including credit card, PayPal, Apple Pay and Etsy gift cards. Poshmark is limited to credit card and PayPal.
So Etsy not only pays out faster but provides sellers with more ways to get paid.
Verdict: Etsy offers quicker access to earnings with added payment flexibility.
Customer Service and Support
Poshmark emphasizes community engagement, but this social shopping format can complicate buyer inquiries and issues. Response times may lag.
Meanwhile Etsy provides dedicated support channels for sellers via email, chat and phone. As an Etsy seller myself, I’m continually impressed with their responsiveness.
Verdict: Etsy provides better seller support resources.
Final Verdict: Which Platform is Best for Sellers?
For handmade, vintage and craft sellers, Etsy is likely the more profitable pick. Lower fees per transaction coupled with an enormous buyer base searching for unique items translates to higher earnings. While you’ll invest more effort into branding and marketing, profit possibilities are dramatically bigger.
For used or new clothing boutiques, Poshmark allows sellers to operate lean. Consigned inventory means less upfront product costs. Streamlined listing and enhanced exposure through social buying perks accelerates inventory turnover. Just be aware commissions take a 20% cut.
Ultimately examining your product selection, desired profit margins, and business objectives will determine which platform best serves your earning potential as a seller. But use this comprehensive analysis as a guide when deciding between Etsy and Poshmark.
