Poshmark's New Cancelation Rate Rules (How to Avoid Getting Restricted and Make Even More Sales)

If you sell on Poshmark — especially if you’re dropshipping or running higher volume — this is an update you need to pay attention to.

Around December 10th, I was temporarily restricted on Poshmark due to order cancellations. This caught me completely off guard, because it was the first time this has ever happened to me.

I’ve been selling on Poshmark for a long time and have done significant volume. Over the years, I’ve canceled hundreds, if not thousands, of orders for normal reasons like items going out of stock or supplier price changes. Historically, this had never caused an issue.

But something clearly changed.

What Triggered the Restriction

In early December, I canceled dozens of orders over a relatively short period of time. These cancellations happened across hundreds of total orders, not just a small batch, and most were due to out-of-stock issues or price differences with suppliers.

That’s when the restriction happened.

So I started digging. I wanted to understand exactly what caused it — and more importantly, what the actual policy is now.

Poshmark’s New Cancellation Policy Explained

After investigating and confirming the details, here’s what Poshmark’s current policy states:

As long as order cancellations are no more than 3% of your total orders within a rolling 90-day period, your account standing will not be impacted.

Additionally — and this is the most important part — buyer-requested cancellations do not negatively impact your account standing.

This distinction changes everything.

The Two Key Takeaways Every Seller Needs to Understand

First, you must keep cancellations that are not buyer requested under 3% of your total orders within a rolling 90-day window. If you exceed that threshold, you risk warnings, restrictions, or worse.

Second, Poshmark now allows you to cancel orders using “buyer requested” as a reason — and those cancellations do not count against your account metrics.

This is a major update, especially for dropshippers.

Why This Is Great News for Dropshippers

In the past, if an item went out of stock or a supplier price changed, you were forced to cancel the order yourself and select a reason like “item unavailable.” Every one of those cancellations hurt your account.

Now, there’s a much safer and more sustainable way to handle these situations.

If you realize there’s an issue with an order, you can message the buyer and explain the situation professionally. For example, you can say that while preparing the item for shipment, you noticed a small issue — a rip, dent, chip, or defect — and wanted to check whether they’d still like to proceed.

In most cases, buyers will appreciate the transparency and agree to cancel.

Once they confirm they no longer want the item, you can cancel the order using “buyer requested” as the reason. When you do that, it does not hurt your account standing or cancellation metrics.

That’s the game changer.

What’s Different Compared to the Past

Previously, even if a buyer verbally agreed to cancel, the cancellation still counted against you because Poshmark didn’t clearly separate buyer-requested cancellations in the system.

Now it does.

That means dropshippers can operate much more safely — as long as they communicate clearly and use the correct cancellation reason honestly.

Final Thoughts

The rule to remember is simple...

Keep non-buyer-requested cancellations under 3% over a rolling 90-day period.Use buyer-requested cancellations correctly and transparently.Always communicate with the buyer first.

If you follow these guidelines, you can protect your account while still scaling your business.

I’ll be breaking this down even further in an upcoming video, including how I personally track cancellation percentages and manage orders at scale without crossing that line.

Hopefully this update saves you from unnecessary restrictions and clears up a lot of confusion around cancellations on Poshmark.

If it helped, feel free to share it with another seller who needs to see this.