Pricing Strategy on Poshmark

Pricing Strategy on Poshmark

You may have noticed an underlying theme in my recent posts. I truly believe that most customers shop on Poshmark through searches. Based on this assumption, my focus has been in making my listings show up (and stand out) in searches.

For instance, I share my closet first thing in the morning. This is not so that a follower will see it on their feed but so that it shows higher in the “just shared” default search. So in looking for new ways to get my listings noticed, I realized a major opportunity I may have been missing this whole time!

Normally I will test out my theories and have a definitive opinion before posting about it here, but I wanted to share this beforehand to see if any of you have considered the same…

Shopping on Poshmark Through Searches

When you type in the search engine on Poshmark the default results are filtered by “Just Shared” (also, if you have selected size preferences then that is a default too).

This means “just shared” by the closet’s account (self sharing) NOT shared by another posher.

As I was shopping recently I found myself using another search parameter.

I was searching by utilizing the PRICE filter. More on that below.

If others are doing this too, I may need to adjust my pricing strategy.

First though, let’s discuss perceived value.

 

 Value Perception

If something is priced higher than comps, your initial perception might be one of curiosity:

  • “Why is this one more expensive than the others? This must be better quality.”

Also, it can have a negative effect:

  • “Why would I pay this when another seller has it for less? This seller must be nuts.”

Even pricing too low can raise flags:

  • “This is worth way more. I wonder what is wrong with it?”

What do I mean by comps? Comparisons. Other Listings that are exactly like yours or similar. They may be available or sold. If you do not know the comps of the item you are selling, you are at a severe disadvantage because the buyers absolutely do!

Consider yourself as a buyer. You may not even realize it- but you have been checking comps for years! Do you normally buy something right away online? Probably not. I’m guessing you check Amazon, eBay, Poshmark, etc. You factor in quality, shipping costs, etc. This is comparison shopping or checking comps.

Ok, back to how this relates to searches…

Price Expectation.

When I shop, I sometimes sort low to high/high to low as shown above. More typically I shop with the PRICE FILTER:

 

If someone is going a search using the price filter, I certainly want to appeal to the correct group with my pricing, I have to think about which group my item is going to appeal to based on brand and quality.

 

I started to look through my closet with this in mind.

What price would someone expect to pay?

What category do my items fall into?

 

If I am searching for a basic top (Loft, J.Crew, Madewell, etc) – I will probably filter UNDER $25. If I am searching for a brand like rag & bone, Vince, or Equipment… my expectation is that it would fall under $25-50 or $50-100.

In reviewing my pricing in my closet, I am making sure I show up in what I believe to be the right category. If I price a great American Eagle hoodie at $26, my $25 and under customer base may never see it! Adjusting by just a couple of dollars may pay off in the long run.

Another detail about the filter:

$25/50/100/250/500 will show up in 2 categories.

Example: If I price a Madewell top at $25, it will show up in the “Under $25” AND the “$25-50” brackets.

If you price on the fence you will show up in both categories. That’s something else to consider…

 

New Pricing Strategy

Here is my current plan:

  • If I am asking $28-30 it may be more worthwhile to price at $24 or $25 to get it potentially more views. I am considering each item and its current bracket.

 

  • I am checking low to high/high to low to see who I would be grouped with and where I will rank.

 

  • I am deleting items that were not getting much attention and relisting them into a different sorting bracket to see if it gets a different result immediately.

 

I will report back to let you know if I see any major difference in activity and sales!

 

What do you think?

Do you considered the pricing filter when setting prices?

 

XOXO

31 thoughts on “Pricing Strategy on Poshmark

  1. I read all of your posts and enjoy them, but this one has really got me thinking about pricing. I do search comps, but I have not looked at the price filter aspect yet. I think I will try out the same thing you are experimenting with and see if you have something here! 😉 Thanks again for a great blog! ~Trish aka @grapeminds

  2. I recently found your blog and have enjoyed reading your posts. This is a strategy I have not thought about. I think I will give it a try. Thanks again for sharing your Poshmark knowledge. All the best, Nicole @nlc123

  3. I never really thought about the aspect of pricing on the fence of two categories and the item showing up in two price category searches. I am going to start experimenting with this today. I have been trying to pay more attention to key words. I look forward to seeing everyone’s updates.

  4. I just recently decided to take my Poshmark selling more seriously and because I’m a crazy researcher ( I know that all the questions I have, someone else had before me) I was lucky to come across your blog. Thanks for taking the time to share your insights and strategies. You’ve confirmed many things that I was noticing using the app and have opened my eyes to some new things I wasn’t even thinking of!
    @candida

  5. Thank you so much for clarifying about the quote price fence. I never knew which category the item would fall into. I love your blog and read it faithfully. My sales have been rather sluggish lately, and a PFF told me she spends a lot of time focusing on following new members. So I tried following everyone new for the past few days and sold four things!

  6. Thank you for always taking the time to write such well thought out and helpful blog posts. I always look forward to seeing news from you in my inbox. Best regards, Theresa @tcstreasures

  7. Another thing I like to do is make a bundle posting. For example, Coach has flooded the secondary and tertiary markets, so instead of selling 2 bags separately, I listed them together. The bundle sold in less than a week. I’m doing the same for “mall” brand and Target stuff. As a consumer, why would I buy an old navy top for $8 and $7 for shipping? Might as well buy a new one for the same price. We have to remember we are competing with retailers of fast fashion where they churn out new stuff for less than $25 in most cases. I’m going to do more and more bundle listings going forward.
    As always, thanks for the great post!

  8. I also appreciate you pointing out the price brackets, Elle. I have never used the price bracket search when I looked for anything, but keeping things at 25, 50, 100, etc will be more in my focus now when I list things. Thank you once again for a wonderful new perspective!

    Kris @adaptations

  9. Thank you so much for this information. I had under priced an expensive pair of shoes, but wanted to sell them at a good price. I saw another pair priced right. I deleted mine, and repriced them. I also used the pricing tool you mentioned. I changed a few items to get more views. It worked on 2 items so far. Also, I didn’t know about the just viewed. I learned so much today. Thanks again

  10. This was really insightful! I never would have thought to look at the price brackets. Also, you are right about people thinking there is something wrong with an item priced too low. I had a Vera Bradley bag posted for $5 because I was trying to clear space, and I got a hateful message saying I needed to state what was wrong with it. Yikes!

  11. This is really interesting! However, I noticed when searching on a desktop, the ranges are different.

    25 and under
    26-50
    51-100

    etc.

      1. I wonder if more people shop via desktop or app? Either way, I just bumped up all of my $24 listings to $25 – let’s see how this goes!

  12. Hi! Love your blog! I literally just noticed this today: they changed the price brackets, so now it says $26-50, $51-$100 etc. I was pricing a lot of things at $25 & $50 to show up in both ranges but I guess not anymore? Also ps – I’m pretty sure we are the only people up sharing at the crack of dawn. When I open my Instagram you are the only other one posting stories at 5am lol! Makes me feel like I’m not alone! 🙂

  13. Ooo interesting! I too wonder if shoppers use a desktop or app more. I personally prefer desktop when shopping, I feel like it’s easier to filter stuff. Thanks again for the insight!

  14. Just reading over my comment and I meant to write “sharing about our closet” meaning on Instagram not on poshmark. I agree sharing early morning is great idea. I’ve had a lot of late night/ early morning sales so people are definitely shopping! Just want to clarify, hope it didn’t come off the wrong way.

  15. Great information as always. I have a tip that was briefly mentioned, but I feel has a lot of importance. I’ll get to that in a bit. I just changed the price of my Abercrombie & Fitch skirt to $25, so let’s see what happens (I had priced it too low, actually)

    Another reason I priced it higher was that I generally always try to look at ALL SOLD ITEMS in ALL sizes for each particular item I’m trying to sell (Filter > Availability > Sold Items).

    For example, I priced my boutique Spiritual Gangster leggings at $69. Then over time (and not selling) I checked all sold items and the going rate was $9-$17! NOT ONE BUYER bought these leggings for anywhere even near $30-40! So I lowered it to $12 and quickly got two sales. Now I have it raised to $22, but I’ll know when to lower it again if I don’t see any sales soon. New sellers have listed the leggings at $60+ and will probably never see it sell at that price.

    Back to my A&F skirt: I had originally listed it at $15…but when I checked Availability > Sold Items in ALL SIZES (to get a bigger picture) a lot of A&F skirts that looked like mine were actually being bought at $20-30! I immediately raised it to $25.

    So that’s my tip–see what is actually being SOLD and what people are WILLING to pay for it. If you want to sell it in a timely manner, you may have to compromise a little. If you don’t mind keeping it in your closet for sale for a year or more, then keep the price higher…if you have the patience!

    Maybe I should start my own blog 😉

    @poshielisa

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