As the COVID-19 pandemic spread worldwide and devastated the brick-and-mortar businesses, social commerce emerged as the new way to shop due to sheltering in place. And now, for many, it’s a solid habit. You’re flipping through your favorite social platform, and every few posts are an ad for products you have shown an interest in. Because of this, eCommerce on social media has exploded over the past year forcing the social platforms to improve their eCommerce integration and provide a pleasurable buying experience without leaving their app. It’s leveraging our human interactions and inputs on social media platforms to aid in finding the products we desire.
One area of this social commerce explosion is the resale industry, and Poshmark is one of the biggest Social Commerce Marketplace in the US. The platform mimics social media, where people can follow, share, sell and buy from each other. It’s been compared to an Instagram for closets where you communicate and transact on the picture of the item you like. Unlike traditional retailers with deep pockets for marketing, sellers on Poshmark rely on the power of social media to influence. I recently created a profile to browse the categories and better understand the “closets of established influencers.” that have items priced at a few hundred dollars, and why would someone spend so much just because of the influencer?
Poshmark seems to be extremely successful as a retail platform, and since 2011, sellers have sold $1B worth of merchandise. To be successful on this platform as a seller, you need engagement. This is influenced by many factors: time of day, number of followers, rate of your post, the brand of your items, etc. This increases exposure to your closet and, in turn, increases the possibility of you making a sale. When it comes to data and analytics, Poshmark provides limited information and focuses on popular brands, trend insights, and Posh Tips about marketing and data reports about current trends. By collecting data from a users smartphone app, Poshmark could track purchasing patterns, predict future operational plans, and increase focus on micro-trends to promote users’ items to a targeted audience.
Social commerce is still a growing market and will evolve quickly as we determine our fate in this time of the pandemic. If Poshmark can provide its users with the data they need to further leverage the social media and interaction of the app, Poshmark will see its user base grown, and the platform could become a success.
Riedl, Joanna. “How Poshmark Created The Near Perfect Brand Voice.” TechDay, TechDayHQ.com, 2020, https://techdayhq.com/community/articles/how-poshmark-created-the-near-perfect-brand-voice
Lauren. “Poshmark: A Social Media Platform for Fashionable Resellers and Buyers.” Digital Initiative, Harvard Business School, 26 February 2019, https://digital.hbs.edu/platform-digit/submission/poshmark-a-social-media-platform-for-fashionable-resellers-and-buyers/
Nguyen, LinhDan Ha. “Poshmark – Buying and selling fashion in the age of Social Media.” LinhDan Ha Nguyen, Medium.com, 15 May 2019, https://medium.com/@linhdanhanguyen/poshmark-buying-and-selling-fashion-in-the-age-of-social-media-586178a312d3