Poshmark performed poorly after its IPO and launched a video feature to attract sellers

According to foreign media Retail Dive , Poshmark has introduced its listing video feature, which allows sellers to create accompanying videos for their product listings.

With the listing video feature, sellers can post a cover image , record or upload a video , customize a video and post it with the listing. According to Poshmark , sellers can only add one video to each listing, and the maximum length of a business video is 15 seconds.

The feature will allow consumers to get more detailed information about products, such as fit , drape and texture, before purchasing them. The content will remain on the seller's page as long as the item is available for purchase and will be automatically posted to the seller's Posh Stories.

The launch of Poshmark’s listing videos follows last year’s launch of Posh Stories, short, shoppable videos and photos of sellers’ item listings. The platform said the listing video feature allows consumers to recapture some of the in-person shopping experience and expands the platform’s multimedia capabilities.

“Video is a big business priority for Poshmark because it seamlessly brings together commerce and content in a very authentic, engaging and palpable way, ” said the platform’s head of video. “ As the company’s vision is rooted in cultivating rich, meaningful experiences for its community, Poshmark is using video as a new channel to strengthen that engagement and lay the foundation for the future of social commerce.”

Last month, the platform officially entered the pet category, which includes new and used pet accessories, supplies and toys for a variety of animals. The company said that entering new product areas demonstrates Poshmark's long-term strategy to scale the company through category expansion. The online social commerce platform expanded into the home category in summer 2019.

Meanwhile, the company launched its IPO in January, trading under the ticker POSH. In its first quarter report as a public company, Poshmark reported net income of $69.3 million, a 27% year-over-year revenue increase. However, the company issued a weaker-than-expected outlook for the current quarter.

According to reports, Poshmark, an online second-hand clothing distributor in the United States , said that due to the impact of snowstorms and the epidemic on logistics, the company's first-quarter revenue is estimated to be lower than expected.

Influenced by this news, Poshmark's stock price fell 15% after the market. As of the close of trading on Thursday, Poshmark's stock price was 42% higher than its IPO.

Poshmark said demand was strong in January, but sales fell in some U.S. states in February due to snowstorms. In addition, the pandemic-induced logistics problems were also one of the reasons for the decline in sales.

But Poshmark also said that the number of searches for summer clothes on the platform has increased by 200%, and the number of searches for swimsuits has increased by 150%, which suggests that many Americans are already preparing to go out.

In the fourth quarter of 2020, Poshmark's net revenue increased 27% year-on-year to approximately US$69.3 million. The company expects first-quarter revenue to be between US$75.5 million and US$77.5 million, a year-on-year increase of 32-36%. Analysts expect revenue to reach US$79.2 million.

Poshmark

Listing

Video Features