Peer-to-peer marketplace Poshmark Inc. moved for the first time beyond apparel and makeup products this week, opening Home Market, a section of its app and website that allows users to buy, sell and discuss home decor. Poshmark is an app-based ecommerce marketplace with more than 5 million sellers and 40 million registered users.
The marketplace on Tuesday began selling home items under five pounds, such as wall art, accent rugs, bedding, bath and holiday-related items, as well as party and office supplies.
The expansion into home goods was a natural progression for Poshmark, which operates as an ecommerce site and a social platform on which users share ideas and tips, or socialize, says Tracy Sun, senior vice president of new markets and a co-founder.
Poshmark members come from about 80% of U.S. ZIP codes, Sun says. Most Poshmark sellers are individuals rather than businesses and about 70% of the merchandise sold is used. The company says its sellers make a sale nearly every second and Poshmark has distributed over $1 billion to sellers since its launch.
“The passion and energy around home are not that different from the passion and energy around fashion,” Sun says. For that reason, the category is a natural fit for a “social commerce” site like Poshmark. Plus, Poshmark received numerous requests from members and sellers to move into the home category, she says.
The Poshmark marketplace has 75 million listings, the company says. Poshmark ranks No. 33 in the Internet Retailer Online Marketplaces Database, which ranks 100 online marketplaces by the gross merchandise value of goods sold.
Home Market joins other Posh Markets, a set of shopping communities within the Poshmark app, that the marketplace debuted in July 2018. The other Posh Markets focus on product categories of women, men, kids, luxury apparel, sneakers, prom, maternity, petite, plus-size, activewear, makeup, gifts, boutique apparel and wholesale goods.
Poshmark made another significant change in April 2019 when it began collecting and remitting state and local sales taxes for transactions made through the platform via a program called Posh Remit, set up to simplify the sales tax process for sellers.
Since its launch in 2011, Poshmark has raised $153.0 million from investors, across five funding rounds, according to Crunchbase data. The marketplace’s most recent funding came from an $87.5 million Series E round in November 2017, led by Temasek Holdings. That round valued Poshmark at $512.5 million, according to Crunchbase. Other investors include Mayfield, Menlo Ventures, GGV Capital, Inventus Capital, Uncork Capital, Union Grove Venture Partners, Shea Ventures and AngelList.
In February 2019, Poshmark added tennis champion and businesswoman Serena Williams to its board of directors. Williams also sells clothing on Poshmark and donates the proceeds to the Yetunde Price Resource Center, a non-profit organization founded by Williams, which provides services to victims of violence.