Poshmark’s recent pricing shift backfired, leading to widespread seller frustration, but CEO Manish Chandra’s response is being praised as exemplary leadership by experts. Known for connecting buyers and sellers of new and secondhand fashion, Poshmark introduced a controversial pricing adjustment on October 3, shifting part of the platform’s sales fee from sellers to buyers. Instead of spurring sales, the change sparked a significant backlash, with sellers reporting declines in transactions and a negative impact on their earnings.
In response, Chandra issued a direct and detailed apology, pledging to restore the previous fee structure on October 24. “The outcome of the change did not meet our expectations, and I sincerely apologize for the disruption and impact that this has had on you,” he wrote, addressing the platform’s sellers. He also outlined actionable measures, such as rebates for sellers affected during the fee change period, showing a clear commitment to listening and adapting based on feedback.
Leadership strategist Talia Fox, CEO of KUSI Global, praised Chandra’s approach as an example of effective crisis management. According to Fox, Chandra’s transparency, agility, and focus on making tangible changes represent the elements of a genuine apology, in contrast to the “wordsmithing” that can often leave such messages feeling hollow. Chandra’s actions align with Fox’s TCT framework for leaders handling difficult situations: timing, culture, and track record.
Despite the positive reaction, some users were dissatisfied, questioning why a middle ground wasn’t considered to satisfy both buyers and sellers. Fox suggests that in such situations, CEOs should focus on the people most integral to the company’s success. For Poshmark, that’s the sellers, who are essential to its business model. Chandra’s rapid response reflects a commitment to maintain a healthy seller base, even amid challenges.