Ten months after the U.S. Supreme Court ruled states can make ecommerce companies collect and remit sales tax, Poshmark is debuting Posh Remit to collect this levy on behalf of Poshmark sellers.
The new tool is rolling out in 45 states, five territories and other local jurisdictions where laws have passed since the Supreme Court ruling. Manish Chandra, founder and CEO of Poshmark, said the company is integrating Posh Remit into its “core platform,” to take care of its sellers and make it easier for them to continue doing business.
“Our mission has been to democratize retail and make it very easy for anyone to access being a retailer,” Chandra said. “With this [new tool], we in a way finished our platform road map—everything from payments to shipment to dispute management to authentication—so [that our sellers] can really focus on merchandising.”
Posh Remit is joining the suite of tools Poshmark offers to every seller like Posh Post, which gives sellers prepaid and preaddressed shipping labels for certain items. The tools are free to use, with Poshmark only receiving a 20 percent cut of each sale (or a minimum of $2.95). By incorporating Posh Remit into the suite, Chandra said sellers won’t need to worry about all the specific regulations in each state or jurisdiction, and the tool is a product he said sellers had been asking for for a long time.
“It’s a fairly complex process for the seller to figure it out,” Chandra said. “No one has really taken the step to do it seamless in every jurisdiction. We are fulfilling their local obligations.”
Evelyne Teman, a Poshmark seller with close to $1 million in sales, thinks it’s great that the company is bringing the tool to sellers and doesn’t think buyers are going to get upset about it.
“As a business owner, I think it’s fabulous that they’re doing this because it takes a lot of stress out myself,” Teman said.
Poshmark isn’t alone in figuring out how to handle the ruling. In January, Etsy wrote a blog post detailing when it would collect and remit sales tax for sellers. Similarly, Poshmark is announcing the tool today to educate its sellers and buyers about the changes before it officially rolls out on April 1.
“Our overarching principle when we’re offering anything new is simplicity and fairness,” Chandra said. “In this case, I feel like we worked hard to deliver that to our sellers and our entire community.”