Poshmark Partners With Seel For Worry-Free Returns Pilot
Poshmark is testing a new Worry-Free Returns offering giving US buyers optional return flexibility added at check out for a fee - but could the program end up costing sellers too?
The new program taps Seel to handle reverse logistics implementation, promising streamlined returns for buyers for any reason - even those that don't meet existing Posh Protect guidelines.
According to a a section called "What we're testing" in a recent Seller Updates post on the Poshmark blog:
Seel Returns (Worry-Free Returns)
We’re testing a new optional buyer protection powered by Seel. This is a buyer-paid add-on at checkout and does not affect the seller’s shipping, earnings, or payouts.The goal is to give buyers added confidence and help sellers convert more sales by allowing buyers to opt into coverage for return reasons like fit or changed mind.*
- For Buyers: Worry-Free Returns, powered by Seel, can be added at checkout and offers additional flexibility beyond Posh Protect. This includes returns for reasons like fit issues or a change of mind. Buyers will have up to 7 days from delivery to initiate a return directly with Seel.
- For Sellers: Your earnings and payout timing will not be impacted. Worry-Free Returns are handled entirely by Seel, and returned items are sent back to Seel, not to you. No action is required from sellers.
Currently, Posh Protect allows buyers to return items within 3 days only if they are damage or not as described - and returns for those reasons will still be handled under the Posh Protect policy going forward.
Worry-Free Returns through Seel will allow buyers to return for remorse reasons (doesn't fit, changed my mind) for up to 7 days after the item is received, but the buyer has to have added that extra protection, and paid the extra fee, at check out in order for the purchase to be eligible for return.
How Poshmark and/or Seel determine the additional fee for Worry-Free Returns isn't explicitly stated anywhere, it's simply described as a "small percentage of your order total" that will "show at checkout before you confirm your order."
Here's what that looks like in practice on the site:
How Worry-Free Returns Work
To use Worry‑Free Returns, buyers have to go through Seel, not Poshmark’s normal return flow.
From the order page, tap “Problems/Order Inquiry,” choose “Item does not fit” or “Changed my mind about the item,” and you'll be redirected into Seel's Resolution Center or you can also start directly at resolve.seel.com/poshmark or via the “Start Seel Claim” link in the Seel confirmation email.
Buyers must open the return within 7 days of delivery and then they have 7 more days to ship once the claim is started.
Once a claim is approved, Seel issues a prepaid shipping label and the item is sent to Seel, not back to the seller or to Poshmark.
After processing, Seel issues the buyer’s refund - typically within one to two business days - via ACH, Venmo, or PayPal. If Seel denies a claim, they are responsible for explaining the reason and handling any follow‑up questions.
NOTE: Seel only refunds the item price plus sales tax, any original shipping cost paid by the buyer is not refunded.
It's also not entirely clear if the pre-paid shipping label cost is deducted from the refund, Seel's FAQ calls it a "Poshmark-provided shipping label" which could indicate Posh is footing the costs for return shipping at least initially - but that could potentially change in the future.
Buyers and sellers are both encouraged to read the full terms and conditions and FAQs both from Poshmark and Seel to fully understand what is covered or not and how the program works.
What Happens To Items Returned To Seel?
Worry-Free Returns items are sent directly to a Seel liquidation partner warehouse where they may be disposed of, recycled, or resold.
Poshmark is touting this new returns program as no cost to sellers, but this is where hidden "costs" may appear in the form of increased competition - possibly even directly subsidized by the platform.
Sellers have become increasingly frustrated in recent months as Poshmark has started to compete directly against them with staff-hosted Posh Shows which are often "partnerships" with big brands selling off pallets of deadstock and returned goods.
Liz Morton
While neither Posh nor Seel have given details about the liquidation partners who will receive returns through this program, it's a good bet at least some of that inventory will end up back on Poshmark at some point.
To be fair, many marketplaces have similar policies which may see returned or rejected items sold off to liquidators and then possibly relisted for sale - for example, eBay does this with their International Shipping Program and Mercari has also been experimenting with a similar returns program for fashion items.
Liz Morton
But if Poshmark hosts their own live shows selling these items for the liquidators or offers the liquidators special perks or fee breaks, that could cross a line that would push many regular sellers away.
This Worry-Free Returns test comes as Poshmark is testing and making several other changes to the platform as well, with recent promise for more transparency and better communication in response to seller backlash over chaotic, roller coaster year in 2025.
Liz Morton
In additional to changes announced a few weeks ago, Poshmark's latest update includes:
What’s Coming Up
- Overweight Shipping Labels: We’ve heard that shipping heavier items on Poshmark can feel complicated. To make this easier, we’re simplifying how overweight shipping labels work by moving to flat-rate pricing. We want sellers to feel confident when choosing the right label for heavier items. Once this is live, we’ll share details in our Support Center.*
- Bulk Smart Sell: We’ve heard from many of you that Smart Sell has helped simplify pricing and offer management, but we understand you need more flexibility. Soon, we’ll test a new way for sellers to enable Smart Sell across multiple listings at once, making it easier to automate selling at scale.
- Combine Orders: We’ve heard your feedback about combined orders and are making adjustments to reduce confusion. We’ll share more details soon.
- Text My Order: For sellers who opt into SMS notifications, we’re testing text reminders to help prevent delayed shipments. Sellers may receive a text notification to ship an order if it has not been shipped within 5 days.*
What do you think of Worry-Free Returns and other recent Poshmark updates? Let us know in the comments below!
