It reversed its decision pertaining to this new fee structure within just a few days after the announcement as sellers expressed their objections. Shortly thereafter, a social marketplace called Poshmark disclosed that it would reduce the selling fees and increase those levied on buyers.

On Monday, founding Chief Executive Manish Chandra wrote in an email to sellers—viewed by TechCrunch—a memo of apology for the change about the fee, saying it caused shoppers to spend less on purchases, "leaving our sellers with less cash in their pockets—despite the seller fee reduction.".

Chandra continued: "The outcome from the change was not what we were hoping for, and I am truly sorry for the disruption and effect this has caused for you."

This month, Poshmark released a new fee for all sellers who sell on the platform to replace the original 20% fee for sellers. The new structure will have a fee for the seller at 5.99% fee and a buyer-protection fee of 5.99%. The buyers and sellers also pay an extra $1, $2, or $3 according to the amount of order. Regarding this, if the order falls below $15, then one is required to pay $1. A combination between $15 and $50 incurs payment of $2 and over $50 one has to pay $3. Shipping costs are yet to be accommodated by the buyers.

Several sellers vented on Reddit about the new system, indicating that their sales had dropped sharply, possibly from a fear-induced bait-and-switch reaction by customers who cancel purchases when they see the additional fee. "I used to have '12-15 sales' a week and now have fewer than five," one Redditor said.

It's not the first reseller platform to face backlash. In March, Mercari canceled all seller fees and began charging buyers a service fee for what it called "hassle-free returns." No surprise that people were outraged; two months later, Mercari walked some of those changes back.

Poshmark's initial fee structure begins this Thursday, 24th October. It's also refunding sellers the difference in seller fees on listings made or updated between 3rd October and 23rd October and sold between 24th October and 27th October.