Dive Brief:
- Poshmark is now using the U.S. Postal Service's Ground Advantage service to reduce shipping rates for buyers, the fashion resale marketplace announced last month.
- As a result, Poshmark's flat shipping rate fell from $8.27 to $6.49 on Sept. 12, the lowest it has been since 2017. The online marketplace previously used USPS Priority Mail for shipping, but decided to change course after rate increases for the service took effect in July.
- "With input from our sellers and a shared goal of keeping shipping accessible, we partnered with USPS to find a better path forward," Poshmark said. "The result is a new, lower shipping rate that benefits both buyers and sellers."
Dive Insight:
Driving more demand for Ground Advantage is a priority for the Postal Service amid its efforts to boost its bottom line and compete against FedEx and UPS.
The agency saw volume for Ground Advantage increase 39.6% YoY in Q3, and revenue climbed almost 31%. On the other hand, the Priority Mail service Poshmark moved away from has seen demand fall in recent quarters. The Postal Service attributed "intense competition from more affordable products with slower delivery standards" as part of the category's struggles in its most recent quarterly report.
Tapping Ground Advantage may have opened the door for lower rates but it could slow shipping speeds for some Poshmark orders. Priority Mail provides delivery in two-to-three business days, while Ground Advantage offers a timeframe of two-to-five days.
Poshmark sellers may also have to adjust their shipping practices in order to comply with the shift to Ground Advantage. The marketplace noted the Postal Service may refuse Ground Advantage shipments with Priority Mail packaging. Therefore, sellers will need to either use their own packaging or switch to non-Priority Mail packaging, Poshmark said.
"To make this transition easier, Poshmark sellers will have exclusive access to free USPS Ground Advantage boxes," according to the announcement.
