Poshmark vs. Thredup: Difference and Which Is Better!

Poshmark and Thredup are both excellent services for when you want to get rid of old clothes and make a bit of money. Doing a deep dive into Poshmark vs. Thredup will help you decide which is best for you and which one you can take advantage of.

If you're like me, chances are you have stacks and clothes you haven't worn in years. The sad pieces of clothing sit around collecting dust and never see the light of day. You've thought about donating them but would like to make some money… but you also don't want to go through the hassle of Ebay or Kijiji… what to do?

Well, Poshmark and Thredup offer solutions. You can post your clothing items on these websites (in bulk at times) and easily sell them for some cash. If your someone in need of new clothes but don't want to make costly purchases, these websites are a great resource for you too!

This post will do an in-depth analysis of Poshmark vs Thredup, discussing the differences in the selling process, commissions, and payment for sellers. Ready to make some cash selling your used clothes? Let's dive right in.

About Poshmark

Poshmark is a “second-hand style” e-commerce app (compatible with both Android and Apple) with over 70 million users across the USA, Canada, and Australia. Originally it started as a small boutique company selling women's apparel. Nowadays, they offer clothing for women, men, kids, and even pets!

All you have to do to use Poshmark is take a picture of the clothing item you want to sell, add a short description, and name a price. Being an app fueled by social media, Poshmark also recommends the users you should follow based on your Facebook friends list.

The shipping process is also quite convenient with Poshmark. They email you a shipping label to print, then you send the package through a post office.

About Thredup

Founded in 2009, Thredup started as a marketplace for the reselling of women's and kid's clothes. On top of just offering just an e-commerce service, Thredup aims to reduce the carbon impact that the fashion industry has had on the planet.

Today, the company has grown to be one of the largest thrift-stores and consignment stores in the world. Thredup currently offers over 35,000 brands and lists over 45,000 new items every day.

Unlike Poshmark, Thredup does not have an app. It is like any other e-commerce store and has a website where all business is conducted. That being said, the process for selling clothes is much simpler. You'll choose one of two clean-out options and they'll send you instructions. But basically, you'll just put your clothes in a bag and ship (consign) it to them.

Thredup will notify you when the items sell, and you'll get a percentage of the price!

Also, Thredup has a cool charity option where you can send them bags of clothes and for every bag you send they'll donate $5 to a charity of your choosing.

Poshmark vs Thredup: The Differences

When it comes to Poshmark vs Thredup, even though both services offer a way for you to get rid of your clothes, there are some key differences that you'll want to take note of. This section will explore how Poshmark and Thredup are different on the seller's side.


The process for selling on Poshmark can be tedious if you're trying to get rid of large amounts of clothing.

You are the one responsible for almost all parts of the selling process. From taking pictures, to listing it on the app, to providing a short description, the whole process can take 10-15 minutes per item. Not a long time, but imagine if you had to do that for 100 pieces of clothing.

Likewise, all of your “inventory” is managed by you. You're in charge of storing your clothes and taking appealing pictures for the app. Some sellers like to joke about their “posh rooms” with pictures of their clothing taking up space in their house.

To promote your clothing items, you can take advantage of a few different tools:

  • Closet Clear Out – on certain days, sellers drop the price of their items based on Poshmark's criteria. This usually amounts to a few dollars of difference in shipping which is covered by Poshmark.
  • Bundle Discounts – sellers can provide discounts to buyers who purchase multiple pieces of their clothing at once.
  • Offers to Likers – sellers can make a discounted offer to people who “like” their item in-app.

Finally, with Poshmark you never quite know when your piece of clothing will sell. If you're just looking to get rid of your clothes and don't care about the profit, then of course you price them dirt cheap. BUT, if you're trying to maximize your profit, you'll need to put in some work (potentially purchasing lighting kits or even body forms).

Even with all this, it could take a day or months for you to get rid of your apparel. The people on Poshmark who sell quickly are the ones with a large “following”, but building a following is a completely different beast.

Inventory / Items Accepted

  • Kids clothes
  • Womens clothes
  • Mens clothing and accessories
  • Personal care products
  • Certain pet items


  • Sneakers
  • Tops
  • Jewelry
  • Makeup
  • Gowns
  • Tees
  • Scarves
  • Watches
  • Hats
  • Heels

Commission and Payment

You might be thinking at this point in time “why in the world would I use Poshmark if it's such a hassle?” The answer lies in the commissions.

Because you're doing so much of the leg work, Poshmark only takes a fraction of what every item sells for.

For items sold under $20, Poshmark takes a fixed cut of $2.95. For items sold over $20, they'll take 20%. The cut that Poshmark receive DOES cover the shipping costs, so at the end it all you're receiving a pretty big chunk of the original price.

Buyers have 3 days after they receive your secondhand item to open a case for return. If they don't, the transaction is finalized on the 4th day and you'll receive your funds. Buyers can also accept a package earlier and you'll receive the funds sooner. After that you can either withdraw the money via check or direct deposit. Funds take 2-3 business days to reach your bank account via direct deposit after your request.


In stark contrast to Poshmark's, Thredup's selling process is much more streamlined. Most of the work isn't done by you and is instead outsourced to Thredup.

The first step is to get a cleanout bag from Thredup. There are a few different options here depending on how expedited you want your clothes sold, but the cheapest one is free. You'll then fill this bag up with clothes you don't want and send it to back to them (they prepay for all the shipping costs).

Thredup will then get your back and sort through your bag of clothes to see what they want and don't want. You can decide if you want return assurance for $10.99. This means that Thredup will return the unwanted items back to you. If you don't choose this option, your unwanted clothes will be recycled.

From there, everything is out of your hands. Thredup will take pictures of your items on body forms and do the advertising for you. The pricing is set by their algorithm but you can do some things to make sure you get the maximum price:

  • Make sure you list the right brand for your clothes (don't mispell Louis Vuitton, Christian Louboutin, Gucci, Prada, Burberry, or Chanel)
  • Check and update the price of your clothes

When it comes to promotion, Thredup will do all the work for you as well. This being said, a lot of their promotion work involves discounts and specials. Your original price may be cut by 20% meaning you'll also receive less.

Inventory / Items Accepted

  • Women's clothing (without size tag)
  • Kids clothes (without size tag)


  • Dresses
  • Jackets
  • Backpacks
  • Sweaters
  • Shorts
  • Swimwear
  • Activewear
  • Belts
  • Downs
  • Handbags
  • Purses
  • Leggings

Commission and Payment

Despite how hands-free Thredup is, its convenience comes at a cost. The commission structure for Thredup varies based on the price of the garment sold but generally speaking lacks behind Poshmark's. Also, Thredup is more of a consignment shop, meaning they could reject your clothing items.

As a general guide, if you sell something for:

  • $5.00 – $19.99, your payout is 3% – 15%
  • $20.00 – $49.99, your payout is 15% – 30%
  • $50.00 – $99.99, your payout is 30% – 60%
  • $100.00 – $199.99, your payout is 60% – 80%
  • $200+, your payout is 80%

What this means is that if you sell something for $20, you would receive between $3 and $6. If you sell something for $300, you would receive $240.

Being a consignment-store, Thredup accepts items on consignment and as opposed to the 3 days with Poshmark, as a seller you'll need to wait 14 days after a buyer receives their clothes before you get any money. This is because buyers have a 14 day return window in case of duds! After 14 days, you can use either PayPal or Stripe to deposit your money.

Be careful though, because earnings only stay in your account for a year before being converted to an e-gift card worth Thredup store credit.

Poshmark vs Thredup: The Verdict

At the end of the day, both Poshmark and Thredup are winners in their own regards.

Poshmark is great if you don't have too many articles of clothing you want to sell and want to maximize your profit. Because of the sheer amount of time it'll take for you to list items, exceeding a few will just not be worth the effort.

The app is perfect for people who are okay with having their items sit around for a little bit in the attic while waiting to be sold. Also, it's great if you're trying to get rid of name-brand, trendy, Designer clothes in good condition from your wardrobe. If you are to use Poshmark, make sure that the photos you take are high quality and that you write a colorful description (also rumor has it that used shoes and footwear sell well on Poshmark).

Thredup, on the other hand, is fantastic if you just want to get rid of your clothes in bulk. All you need to do is send your unwanted clothes away in a bag and they'll either be recycled or sold. If some are sold, you'll make some money!

If you really don't mind how much money you'll make and just need to clean out your stuff, go with Thredup. Everything is done for you and you even have the option of donating to charities of your choice!


Poshmark and Thredup are both great resell services for gently used clothing / second hand clothes that you don't want to hand off to Goodwill. Unlike something like Etsy, these companies focus on clothing resale, and they both excel in their own categories.

But which one to sell your clothes on? The fashionable Poshmark where a shopper would go for savvy items. Or the online consignment shop Thredup, where shoppers can grab a bargain at every turn.

The best thing to do? Use the two in combination! Sell your unwanted, brandless clothing in bulk on Thredup to get rid of them. Meanwhile, list your more pricey, luxury brand, designer clothing items on Poshmark to try and get paid some more!

Even though they commonly compete with one another, many have found that they work really well together.

And, as a buyer, you now have knowledge that could help you the next time you're looking for gently used clothes. You have a lot of clothes and a lot of choices in front of you.

So… what are you waiting for? Get out there and start using these services! If you're a buyer of clothes, you just discovered awesome new sites to shop at. If you're a seller, you have 2 excellent options for reselling your clothes waiting for you when you come back from cleaning your closets!

Jeff is a current Harvard student and author of the blog Financial Pupil who is passionate about learning, living, and sharing all things personal finance-related. He has experience working in the financial industry and enjoys the pursuit of financial freedom. Outside of blogging, he loves to cook, read, and golf in his spare time.