Poshmark HQ just announced that they are doing another Closet Clear Out (also know as CCO) this weekend! The promotion is good until midnight (PST) on Saturday 04/30/16.
How does it work?
When you drop your price by at least 10%, everyone who has liked the listing will get a notification of the price drop. During CCO, the notification will also include a shipping discount that is valid for exactly one hour after the price drop.
Poshmark hasn’t announced what the exact shipping discount will be, but it has been as low as $0.99 in the past.
The notification reminds people of the item that they liked and the shipping discount encourages them to buy it right away. CCO provides a bit of sales pressure because it increases the risk for a buyer that someone else will notice the price drop and buy it.
After making an eligible price drop, you should get an email from Poshmark saying your listing qualifies for discounted shipping. But if you want to be extra sure, like your own listing and you will see the price drop notification in your Poshmark news feed when you change the price.
The fine print
The price must be dropped to 10% below the lowest historical price that your listing was ever at. So if you currently have a shirt for $25, but it was priced at $18 several months ago, then you will need to lower the price to $16 to qualify.
The final price must be at least $15 for CCO to apply. So if your listing was ever $15 or less, then you are out of luck and will no longer qualify for price drop notifications on it.
Items purchased through offers are also not eligible for the shipping discount, regardless of the price
Fake Price Drops
If you don’t want to actually sell your listing for lower than it’s current price, there is a sneaky trick you can use to still benefit from CCO and keep your desired price.
Drop the price on the listing by 10%, which will trigger the shipping discount. Then immediately raise the price back up to where you want it. Anyone who received the shipping discount notification is still eligible for the discount within that hour, even if you raise the price again.
The buyer still benefits from discounted shipping, you benefit by keeping your price, and Poshmark benefits by getting their 20% fee of the higher price. It’s a win-win-win!
The risk is that this tactic can annoy potential buyers if they notice what you are doing. But, chances are, they won’t remember what price your listing originally was. You probably don’t want to do this too many times in a row, though, or it will be easier to spot.
You also risk forgetting what the lowest price was on a listing if you are changing the price a lot. You can keep track of your lowest prices in a private spreadsheet on your computer or on Google Docs so you won’t have to guess at how much you need to artificially drop the price the next time CCO rolls around.
Creating CCO Listings
Often times, I drop the price on a listing and …. crickets. No one cares and it doesn’t result in a sale. Then I have used up a price drop opportunity and saw no benefit in return.
If you don’t feel like bothering with the price drop gamble, you can create an explanatory listing in your closet about CCO. Just explain that you are willing to drop the price by 10% on any $15+ listing to trigger the shipping discount and all a buyer needs to do is ask for it in the comments.
The downside is that this won’t remind people who have liked an item that it exists and they might not notice the discount listing in your closet.
Offers
Some buyers don’t know yet what CCO is and how the shipping discount can benefit them. Or they might not understand that the shipping discount doesn’t apply to purchases made through the offer button.
If an offer comes in during a CCO event, politely leave a comment for the buyer explaining that, if you drop the price a certain amount, they will get discounted shipping. You can even offer to lower the price to an amount a couple dollars over their initial offer since they buyer will also be saving on shipping.
If the buyer would rather go with their first offer, then you can still accept it if you are comfortable with the price.
My Personal Opinion
I used to try dropping prices for CCO every time it rolled around. I would try it on listings with tons of likes and try discounting all sorts of different listings. I don’t think I have ever made a sale as a direct result of my own price drop.
The one hour window makes it difficult when you are trying to accommodate all the time zones. Some people might be at work, at dinner, sleeping or just plain busy. And by the time they see the price drop notification, it will likely be too late.
However, I have had several buyers specifically ask me to drop the price 10% to trigger discounted shipping and I will always do that for them.
CCO can be great for sales, but I personally focus more on trying to educate buyers about what CCO is and how much money they can save.
Having said that, I have talked to several other sellers who do make a lot of sales when they drop their prices themselves. Definitely try it out for yourself and see what works for your closet and your followers.
What have your experiences been with Poshmark’s Closet Clear Out? Feel free to share in the comments. And as always, if you have any questions, go ahead and ask and I will be sure to answer them. 🙂