Poshmark vs. Mercari vs. eBay: Which is Better for Reselling Clothes?

Selling online can open new doors for your small business, but choosing the right platform is key. Mercari, eBay, and Poshmark are three popular marketplaces, each with its own unique elements and shipping options that suit different sellers accordingly. 

In this blog, we’ll compare these platforms' ease of doing business, the selling process, shipping, and taxes & insurance. We’ll break down the setup, fees, how sales work, shipping options, and what protections you get as a seller. 

The goal is to give you a clear, quick guide – in plain language – so you can decide which platform suits your business best.

1. Ease of Setup and Listing Experience

When you’re running a small business, you want a simple platform to start with minimal hassle. Here’s how Mercari, eBay, and Poshmark stack up in terms of getting started, listing your products, and overall customer experience.

Mercari

Signing up is straightforward via the Mercari app or website. You can list items for free (no upfront listing fees) by uploading photos and filling out a short description, category, brand, etc. Mercari’s listing process is very mobile-friendly and simple – essentially, snap some photos, add details, set a price, and you’re good to go​. 

There’s no cost to list; Mercari only charges a fee when your item sells (more on fees in the table below). This simplicity makes Mercari appealing if you want a quick, on-the-go listing experience without dealing with a lot of form fields.

eBay 

Setting up an eBay seller account takes a bit more effort. You’ll need to register on eBay’s site (you can use a personal account or register as a business account) and likely provide identity verification and bank details to get paid. eBay’s listing process is feature-rich but more time-consuming. 

You have to fill out detailed fields like title, category, condition, and specifications (size, dimensions, etc.), and you can choose auction-style or fixed-price listings​. New sellers get a limited number of free listings per month (eBay often allows up to a certain number of listings free, then charges an insertion fee for extra listings). Expect a bit of a learning curve with eBay’s interface, but in return you get powerful tools (like advanced pricing options, bulk listing editors, and promotional features).

Poshmark

Poshmark is very app-focused and extremely easy to start. You create an account (on the app or web) and can begin listing immediately. Listing on Poshmark is as simple as taking photos with your phone, writing a description, and selecting basic info like brand, size, color, and price​. Poshmark is designed for simplicity – no listing fees and an intuitive interface. One thing to note: Poshmark originally focused on fashion, so the categories and listing fields are tailored to clothing and accessories (though they now have Home and Electronics categories as well). 

Want to know how you can sell on Poshmark better? Here’s a little guide. 

2. Fee Structure

All three platforms charge a commission on sales, but their fee structures differ. Below is a quick comparison of the selling fees and other costs:

Notes: None of these platforms charge a monthly subscription to sell (though eBay has optional store subscriptions for high-volume sellers). All three allow unlimited listings without a fee, except eBay, which may charge insertion fees after you exceed the free listing quota. 

Regarding fees, Poshmark’s 20% cut is the highest for larger sales, but it simplifies things by covering payment fees and providing a shipping label. Mercari’s fees are moderate (around 13%, including processing)​.

eBay’s fees range by category (often around 12–15%). Small business owners should factor these costs into pricing — for instance, Poshmark’s high commission might be worth it if your items sell quickly at reasonable prices, while Mercari’s lower fees let you keep more per sale.

3. Selling Process and Customer Interaction

Beyond just listing items, consider how each platform handles the actual sale and communication with customers. This includes how buyers purchase or bid, how you interact with them, and policies on things like returns or ratings:

Mercari

On Mercari, all sales are buy-it-now (no auction bidding). Buyers can either purchase at the listed price or send you an offer. As a seller, you can counteroffer or accept offers. Communication on Mercari often happens through a public comment section on the item listing or via direct message after purchase. 

The tone on Mercari is casual; buyers might ask for more details or negotiate prices in comments. Once an item sells, Mercari holds the payment until the buyer receives the item and rates the transaction. The buyer has up to 3 days after delivery to inspect the item and leave a rating for you, and you then rate the buyer – this double-rating system helps build trust. If the buyer doesn’t rate within 3 days and there’s no issue reported, Mercari auto-completes the sale and releases your funds​.

Returns on Mercari are only allowed if the item is not as described (the buyer can request a return through Mercari within that 3-day window if something is wrong). This means as long as you describe your products accurately, you won’t typically deal with returns or refunds after that period – a plus for small business sellers wanting predictable sales.

eBay 

eBay offers two main ways to sell: auction listings (where buyers bid over a set time) or fixed-price listings (Buy It Now). As a small business, you’ll likely use mostly fixed-price unless you deal in collectibles. Buyers on eBay purchase and pay immediately (for fixed-price listings), or win an auction and then pay. Customer interaction on eBay is usually limited. Interested buyers can ask questions via the “Contact Seller” or message system (these are private messages). 

You can also receive offers if you enable the “Best Offer” option on your listing, allowing some price negotiation. After a sale, you’re expected to ship promptly, and the buyer might message you if they have questions or issues. 

eBay uses a feedback system: buyers and sellers leave feedback scores and comments for each other. Maintaining good feedback is important for your reputation. In terms of returns, eBay’s policy can be more complex – you can choose whether to accept returns (e.g. 30-day returns) on your listings, but even if you say “no returns,” eBay requires you to resolve cases where an item was not as described or if it arrives damaged. Customers can open a claim under eBay’s Money Back Guarantee if something is wrong, and eBay may facilitate a return or refund.

Poshmark

Poshmark’s selling process has a social twist. Sales are buy-it-now (no auctions), but buyers often like to negotiate. They can make an offer on your listing, which you can accept or counter. Also, users can like your items; as a seller you can send private discounts to people who’ve liked an item (a feature called Offer to Likers). 

Communication on Poshmark happens via comments on listings (where shoppers might ask about item details, fit, or authenticity). The platform encourages a community vibe – for example, sharing others’ listings, joining Posh Parties (virtual themed sales events), and building followers, which can help increase your exposure​. Once someone buys your item, Poshmark handles the payment and emails you a prepaid shipping label. Poshmark holds the buyer’s payment until they receive the item. 

Buyers have 3 days to accept the order and report any issues. If the item is as described, the buyer accepts (or after 3 days of no complaints, the system auto-releases the funds to you). Poshmark’s policy is that all sales are final unless the item is significantly not as described, so you generally won’t get return requests for things like fit or change-of-mind – this is great for sellers because it means fewer headaches. 

Shipping and Fulfillment

Shipping is a critical part of online selling. Small business owners should consider who pays for shipping, how easy it is to ship items, and what shipping options each platform provides. Here’s a comparison of Mercari, eBay, and Poshmark on shipping:

Mercari

When you list an item on Mercari, you decide whether you (the seller) will pay for shipping or the buyer will. Mercari offers a built-in shipping label service with several carriers (USPS, UPS, FedEx). During listing, it will guide you to select the package weight/size and carrier if you choose a Mercari label​. You’ll see the shipping cost, which you can either charge to the buyer or mark as free (meaning you’ll cover it). Many Mercari sellers let the buyer pay shipping to keep their prices competitive, but offering “free shipping” (seller pays) might attract more buyers. If you use Mercari’s prepaid label, it’s very convenient – you just print it out (or use a QR code at the drop-off), and the package is tracked. Mercari’s labels come with Shipping Protection up to $200 for loss or damage​. 

Alternatively, you can opt to ship yourself – for example, if you want to use your own shipping account or if you’re shipping something over Mercari’s size/weight limits. In that case, you would handle postage and provide a tracking number manually. Mercari requires that you ship within 3 business days of the sale. 

eBay

eBay gives sellers the most flexibility (and responsibility) for shipping. When creating a listing, you set the shipping method, cost, and who pays. Common approaches on eBay:

• Charge the buyer a calculated rate based on their location (eBay can calculate this if you input the package weight & dimensions).
• Charge a flat rate to all or offer free shipping (popular for attracting buyers, but then you as the seller absorb the cost).

You can choose from a variety of carriers (USPS, UPS, FedEx, etc.) and services (from economy shipping up to overnight). eBay integrates with shipping label printing: once your item sells, you can purchase and print a shipping label through eBay’s interface (often with a small discount). This auto-populates the tracking number for the buyer. Who covers the cost? It depends on what you set – if you offered free shipping, the sale price needs to cover your postage cost; if not, the buyer pays whatever fee was quoted at checkout. 

Shipping on eBay requires a bit of planning: you’ll need to have packaging materials and know the weight of your product to set an accurate shipping cost. For small businesses, eBay’s flexibility is powerful (you can ship worldwide, use your own carrier accounts, etc.), but it can be a learning curve to get the shipping settings right. 

Keep in mind, eBay buyers appreciate fast shipping, so prompt fulfillment is important (eBay will rate your seller performance on shipping speed). eBay doesn’t automatically insure shipments, but if you use USPS Priority Mail, it includes $50–$100 insurance by default, and eBay offers ShipCover insurance for purchase on expensive items. 

Poshmark

Shipping on Poshmark is perhaps the easiest of the three. Poshmark uses a flat-rate shipping system for all orders within the U.S. — currently around $7.97 for packages up to 5 lbs (paid by the buyer at checkout)​. As soon as an item sells, Poshmark emails you a prepaid USPS Priority Mail shipping label. All you have to do is print it, package the item, and drop it off or schedule a pickup. 

The label cost is charged to the buyer (unless you offered a shipping discount during an offer – in that case Poshmark deducts that discount from your earnings). What if the item is over 5 lbs? You can still use Poshmark’s label but you’ll need to upgrade it by paying an extra fee for the additional weight (Poshmark’s app provides a way to do this if needed). 

The flat-rate label covers any distance in the U.S., so you don’t have to calculate shipping for different regions – a big relief for many sellers. Another benefit: because it’s Priority Mail, the package is automatically insured up to $100 through USPS. Poshmark also has your back if anything goes wrong: if a package is lost or damaged in transit, **Poshmark will refund the buyer and reimburse you for the sale in most cases​ This seller protection for shipping issues is a huge plus – it means as long as you shipped using their label, you won’t be out the money for postal mishaps. The downside is the cost: $7-$8 is a high shipping fee for lightweight items, which can deter some buyers if your product is cheap.

 This simplicity can save time and eliminate shipping calculation errors for a busy small business owner.

Shipping Comparison at a Glance

Taxes and Seller Protections

Running a business means dealing with taxes and minimizing risk. Here’s how Mercari, eBay, and Poshmark handle sales taxes and what protections or insurance benefits they offer to sellers:

Mercari

Sales tax on Mercari orders is handled for you. As a marketplace facilitator, Mercari automatically calculates and collects any applicable state sales taxes from the buyer during checkout, and remits those taxes to the state​. This means you don’t have to worry about charging sales tax separately to your customers – Mercari takes care of it in states where it's required. At the end of the year, if you have $600 or more in gross sales, Mercari will ask for your tax info (if not already provided) and issue you a 1099-K form for your earnings, which you’ll use when filing your income taxes. In terms of seller protection, Mercari provides a few layers of safety. First, as mentioned in shipping, if you use Mercari’s label and follow their guidelines, your shipment is insured up to $200 for loss or damage​.

eBay

eBay also acts as a marketplace facilitator for taxes. They automatically collect sales tax on your behalf for any state that requires it (which is most states in the US) and remit it to the state authorities​ (this applies to online marketplaces broadly). The tax is added to the buyer’s cost at checkout, so you don’t have to include sales tax in your item price. 

However, if you’re running a registered business, you may still need to report your sales figures and the fact that taxes were collected by eBay when you file with your state (each state’s rules differ). For income tax, eBay will issue a Form 1099-K if your sales are $600 or more annually (or whatever the current IRS threshold is) – be prepared to provide your SSN or EIN to eBay for tax reporting. 

Now, regarding seller protections: eBay has policies to protect sellers, but they work a bit differently. eBay’s Seller Protection will cover you in cases like a buyer falsely claiming an item wasn’t received when tracking shows it was delivered, or if a buyer misuses returns. They’ll also remove unfair negative feedback in situations out of your control

Poshmark

Poshmark makes life easy on the tax front as well. They automatically calculate and add sales tax to purchases based on the buyer’s location, and handle remitting that tax to states (you may have seen this on your own receipts as a buyer). Poshmark even explicitly notes that they do “automatic calculation and collection of sales tax” as part of their service to sellers​.

Come tax time, like the others, Poshmark will provide a 1099-K form if your sales meet the threshold (so keep your account info up to date for that). As for insurance and protections, Poshmark is known for a very seller-friendly approach in dispute scenarios. The shipping label they provide has built-in insurance (up to $100 via USPS), and if something goes awry during shipping (lost package, etc.), Poshmark’s Posh Protect policy ensures the buyer is refunded and the seller isn’t penalized for it​. 

Poshmark will reimburse you for the item’s value if the carrier truly lost it, so you don’t lose your earnings due to postal issues – this is a big relief for anyone mailing expensive products. 

Which Platform Should You Choose?

Each platform has clear pros and cons, and the best choice depends on your business needs:

Mercari is great for ease of use and low fees. It’s ideal if you want a quick, mobile-first selling experience and are selling a variety of goods (from toys to apparel to electronics). You’ll benefit from its simple interface and moderate 10% fee, but you might find the audience is smaller and sales can be a bit slower for certain products compared to eBay. 

On the other hand, eBay offers the largest audience and the most flexibility. If reaching a broad customer base and having control over your selling format (auctions vs fixed price), pricing, and shipping is important, eBay is the way to go. It’s well-suited for almost any product category. 

Poshmark shines for fashion and lifestyle products. If your small business is in apparel, accessories, boutique items, or home decor, Poshmark connects you with a community specifically shopping for those things. The 20% fee is steep, but you get a seamless process that covers shipping and payment handling completely. Poshmark can deliver quick sales for the right products because buyers on Posh are often ready to purchase trendy items and are accustomed to the pricing. 

In the end, the “best” platform depends on where your customers are and how much effort you want to put into the process. If you value a plug-and-play experience, Mercari or Poshmark might be more your speed. If you want maximum scale and flexibility, eBay is a strong choice. With the information in this comparison, you’re equipped to make an informed decision and start selling online with confidence. 

Good luck with your small business sales!

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