In a swift about-face, social marketplace Poshmark has scrapped its recently introduced fee structure and reverted to its original model, following widespread outrage from sellers. The move comes just weeks after the company announced changes to its fees, which were met with fierce resistance from its community.

In an email to sellers, Poshmark's CEO Manish Chandra apologized for the disruption caused by the fee change, citing a decline in shopper spending and a subsequent impact on sellers' earnings. The company's original 20% seller fee will be reinstated this Thursday, October 24.

The controversy highlights the delicate balance between pleasing buyers and sellers on online marketplaces. Poshmark's misstep is reminiscent of Mercari's similar debacle in March, when it eliminated seller fees only to reverse part of its policy two months later.

The incident serves as a reminder to startups and tech companies to carefully consider the needs and concerns of their users, lest they risk alienating their core community.