Poshmark To Cover New USPS Hazardous Non-Compliance Fee, Will Other Marketplaces Follow?
Online resellers worried about how a new USPS hazardous shipping non-compliance fee may impact their businesses just got a reprieve from Poshmark - will other marketplaces follow?
The compliance crackdown starts July 12 as part of broader updates USPS is making to shipping rates and service standards, with a hefty $50 additional fee for shipments flagged as not complying with hazardous materials policies.
According to Poshmark, sellers are likely to face hazmat issues for one of two reasons: shipping regulated contents (perfume, nail polish, aerosol sprays, electronics with lithium-ion batteries) or reusing boxes with old hazmat markings or stickers even if the item you're shipping isn't hazardous.
That second part is of particular concern to resellers who often reuse packaging in order to cut down on waster and save a few pennies - and Poshmark is stepping up to help address the issue.
In a company blog post today, the second-hand fashion marketplace advised sellers that as long as items comply with Poshmark's terms of service and prohibited items policies, they'll cover some or all of the non-compliance fee for packages which are wrongly flagged.
Poshmark
Poshmark will cover 100% of the fee through July 31, after which the seller will be charged $5 for any flagged packages, with Poshmark paying the other $45.
Here's how it will work starting August 1 if your shipment is flagged:
- You’ll receive an email notification with order details and next steps.
- $5 will be deducted from your redeemable balance, and Poshmark will pay USPS the remaining $45.
- The charge appears as “USPS charge for hazmat noncompliance: $5.00” in your balance activity.
- If your balance goes negative, it will automatically correct from your next sale or redemption.
This update comes after Poshmark made changes to how shipping works on the platform earlier this year.
Liz Morton
It's worth noting that Poshmark says the reduced hazmat fee is subject to change and while it's certainly helpful to sellers, it's not an entirely selfless update -Poshmark is likely concerned that the risk of such a punitive fee could dissuade sellers from listings certain items.
That being said, it also sets a higher bar for competitors and it will be interesting to see if other marketplaces follow suit with their own efforts to ease seller concerns and keep crucial inventory available on their sites.
Here's what other sites are saying so far:
eBay
eBay posted a USPS shipping update in their new community forum this week, advising sellers of upcoming rate adjustments as well as this new USPS hazmat non-compliance fee.
seller_news_team
The United States Postal Service has announced rate and service updates effective July 12, 2026. We’ve highlighted the updates to eBay Labels below.
Updates to USPS Mail & Shipping Service Pricing
- Ground Advantage: although USPS is changing how it prices packages under 1 lb, the good news is eBay Labels will continue to offer the same four weight tiers with no rate increases at this time. Rates for packages over 1 lb are also unchanged.
- Media Mail rates are decreasing by an average of 1.8%.
- Priority Mail and Priority Mail Express have no rate changes.
eBay Standard Envelope updated rates are:
- 1 oz $0.78
- 2 oz $1.07
- 3 oz $1.36
Policy Updates: Hazmat Shipping & DIM Measurements
- Dimensional Weight Updates: USPS is changing both the DIM divisor and the rounding logic to calculate dimensional weight. The DIM divisor is changing from 166 to 139 and measurements will be rounded up to the next whole number. Ground Advantage Cubic and Priority Mail Cubic will continue to round to the nearest quarter inch.
Hazmat Shipping Updates
- Handling Fee: A $7.50 fee per package will be charged for packages containing hazardous material for Priority Mail and Priority Mail Express shipments.
- Noncompliance Fee: A $50.00 fee per package will be charged for every package that does not meet USPS Hazmat requirements for Priority Mail, Priority Mail Express and Ground Advantage shipments.
Cubic pricing eligibility is expanding, with the maximum allowable dimensions on any side increasing from 18 inches to 22 inches for both Priority Mail and Ground Advantage.
In a follow up post in the shipping section of the forum, eBay staff clarified that the changes for Ground Advantage packages under 1 lb will depend on location with rural zip codes and areas outside the lower 48 states being treated differently.
For eBay Labels Ground Advantage shipments under 1 lb to rural zip codes, Alaska, Hawaii, Puerto Rico, and military addresses, USPS will charge the same rate within each zone regardless of weight in ounces.
For the continental United States, the tiered-weight structure remains in place.
Etsy
Etsy also posted an update in their community forums this week,
Etsy Community Shipping
USPS is making several shipping updates that take effect July 12, 2026. Some of these changes may affect Etsy sellers who ship large, lightweight packages, mail letters or flats, or reuse packaging.
Here’s what’s changing and how you can prepare.
Dimensional weight updates
USPS is lowering its dimensional weight divisor from 166 to 139 for some packages over 1 cubic foot. This applies to Ground Advantage, Priority Mail, and Priority Mail Express.What this means: If your package is large relative to its actual weight and exceeds 1 cubic foot, the billed weight may increase. USPS is also rounding fractional inch measurements up to the next whole inch, which can increase the calculated package size.
First-Class Mail price changes
USPS is also increasing prices for First-Class Mail letters and flats.What this means: If you ship lightweight items using letters or flats, your mailing costs may change.
Hazardous materials fees and packaging markings
USPS is introducing new hazardous materials fees, including a $50 noncompliance fee for undeclared or improperly prepared hazardous materials.What this means: Some items, such as certain candles, perfumes, aerosols, nail polish, or items containing lithium batteries, may have special shipping requirements.
Whatnot
Whatnot also recently overhauled their shipping offerings, setting Ground Advantage as the default USPS service and ending support for USPS Flat Rate shipping on the platform.
Liz Morton
And as recent surprise updates providing significant savings on some shipments in the 3-5 lb range show, online sellers may increasingly see rate differences across platforms and providers as USPS makes adjustments to negotiated service agreements.
How will these rate changes and the new hazmat non-compliance fee impact your online business? Let us know in the comments below!
