Fashion marketplace Poshmark has suddenly announced the closure of its Australian, UK, and Indian websites.
Fashion marketplace Poshmark entered the Australian market in 2021 when the company, based in the US, implemented a global expansion strategy. Started in 2011, the marketplace hosts new and second hand clothing and accessories with its merchants selling to a customer base of over 80 million. It first began its global expansion strategy in 2019 when it opened its site up to Canadian users, before the second wave in 2021 which saw it expand to India and Australia, and later the UK in early 2023.
Last week, the company announced with little warning on its website that it would be completely closing the Poshmark marketplace in Australia, India, and the UK on November 2, 2023.
“In order to focus on Poshmark’s North America business and drive meaningful growth in its core markets of the United States and Canada, the company has made the difficult decision to close the Poshmark marketplace in Australia, India, and the UK,” read the announcement.
Poshmark’s services in the United States and Canada will remain unaffected.
Merchants were given no earlier warning, having just one week’s notice to close up shop. Australian users will have until October 25 to use any remaining credits and from October 26, buyers won’t be able to make any new purchases and sellers can’t create any more listings. According to an update posted on Poshmark’s support page, merchants will have until November 1 to redeem their Poshmark earnings, with the marketplace to completely shut down on November 2.
“Our mission has always been to put people at the heart of commerce,” CEO Manish Chandra said. “From the start, we envisioned a vibrant community that would share their style and create the largest network of shoppable closets across the world. and while our ambition to connect as many closets as possible remains the same, I’m sad to share that we’ve made the tough decision to close three of our expansion marketplaces.
“I know this is especially hard news for those of you across the globe who have come to know and love Poshmark – please know that I’m incredibly grateful for you and for the community that we’ve built together.”
In January this year, Poshmark was purchased by South Korean tech company Naver Corporation for US $1.2 billion. At the time of the purchase, Naver said in a statement the combination “will create a global player in online fashion re-commerce”, combining Poshmark’s discovery-based platform with Naver’s experience in upleveling ecommerce.” While plans to continue its global expansion is not clear at this point, Poshmark CEO Manish Chandra has said of the exits, “We hope to be back at some point in the future.”