Poshmark: Community + Commerce

Imagine digitizing your closet and putting select items up for sale that you never use.

Poshmark is an online marketplace, primarily for women who are looking to purchase well-known brands but don’t want to pay retail prices or shop at traditional retailers.

It is part shopping community and part social media. The brand name is derived from the word posh + marketplace.

Whether you are searching for a specific brand, item or size, Poshmark is an online app and website for both commerce and social engagement. Each “posher” creates a closet or online store to show off fashion items for sale. Most of the activity is mobile.

I learned about this through my wife who has been enjoying the ease by which she can photograph and upload images of new or gently used items from her closet. Ra El is an exceptionally talented artist and writer. This hybrid social media and the online retail environment has captured her imagination, and she is enjoying the creative mixed with the commerce.

Here is an example from my wife’s closet where she has amassed 27,000 followers and has done an amazing job of photographing and writing about each item she sells.  She finds unusual and unexpected backdrops to display and photograph the items she sells from jewelry, shoes, clothes, pocketbooks and other items she no longer wears.

https://poshmark.com/closet/dolphinlight

Digitizing Your Closet

Founded by Manish Chandra and Tracy Sun, they have raised more than 160 million dollars and employ over 100 people who help facilitate the more than 1.5 million sellers, who engage with the app seven times or 25 minutes per day. Typically, that is the type of engagement you find from Facebook, Pinterest or Instagram, not a commercial app.

In a world where Sear, Kmart, JC Penny and dozens of other retailers are dinosaurs, new mobile business models for buying and selling goods are emerging.

Some describe Poshmark like an eBay for Millennials although I’m not sure who the real audience is who do most of the purchasing. I think their target is people, primarily women, who prefer peer to peer recommendations and purchases from connections, versus the tsunami of ads that pointlessly act like an authority telling people what to buy and what’s in fashion.

Poshmark is both a creative outlet and a blank slate for women looking to make their fashion statements. However, in the last year one in five people who sign up are men, as Poshmark expands beyond their base community of women.

More than $3 million in shoes, scarves, and skirts are uploaded daily with a sale being made every five seconds, according to the folks at Poshmark. They even have a wholesale portal that allows top sellers to buy from independent brands and resell all-new merchandises. And, they are planning on expanding into menswear and kids’ goods too.

Marketing Observations:

• Poshmark is addictive. It has an energy that is critical to creating vital marketplaces. Are you running enough experiments with your business to find how to get customers emotionally excited? When an item is sold, the seller includes a handwritten thank you note to the buyer. That’s a nice touch that department stores rarely replicate.

• Poshmark is both a creative outlet and a marketplace. Together that creates a lot of space for poshers to play. Some come for the commerce, but the site is designed to give both the seller and buyers engaging experiences. How can you make your business blend commercial and connection?

• In 2011, when co-founder Tracy Sun asked 50 women if they would use the mobile app to buy and sell clothes, 49 out of 50 said no. You have to build a dream and believe the world is moving toward that vision. If you are doing something disruptive, you may arrive way ahead of customers. Don’t expect them to get it right away. And remember, what consumers say and what they’ll ultimately do are two very different things.

Creating a new business that is a mix of social and commercial? Learn from Poshmark and this fast-growing endeavor.

You can set up a time to chat with me about your marketing challenges using my calendar. Email me jeffslater@themarketingsage.com  Call me. 919 720 0995.  The conversation is free, and we can explore if working together makes sense. Try my new chat feature on my site if you have a quick question.

Photo courtesy Poshmark/Ra Elohim