Mastering Waterfall Offers with PosherVA

Maximize your sales and profit by implementing the "Waterfall Offer" strategy. This guide explains what Waterfall Offers are, how to send them manually, and how to fully automate them using PosherVA’s Scheduling feature.

What are Waterfall Offers?

A Waterfall Offer strategy involves sending consecutive, descending offers to your likers over time. Instead of immediately sending your lowest possible price to everyone, you send offers in rounds — dropping the price slightly each time (e.g., 15%, then 25%, then 35%).

Why use this strategy?

• Maximize Profit: You give buyers a chance to purchase at a higher price point (smaller discount) before you drop the price further.
• Maximize Sales: You create multiple opportunities to make a sale by reaching likers at different stages of interest.

How Poshmark Offer Rules Work

To understand why this works, remember two Poshmark rules:

1. The 10% Rule: A liker will only receive a new offer if it is at least 10% lower than the last offer they received in the previous 90 days.
2. One at a Time: A liker can only have one active offer at a time.

These rules make waterfall offers the perfect strategy - each round automatically reaches only the likers who are ready for the next discount tier.

How the Strategy Works (The Logic)

Imagine you have a certain listing in your closet:

1. Round 1 (The Initial Offer): A buyer likes your item. Ideally, you have Automatic OTL set up to send them a 15% off offer immediately.
2. Round 2 (Wednesday): You send a 25% off bulk offer to the whole closet.

• • Likers who ignored the initial 15% offer will now receive this better offer because it is 10% lower.
  • Note: New likers who just liked the item on Tuesday will not get this bulk offer if they still have an active 15% offer pending from your Automatic OTL.

3. Round 3 (Friday): You send a 35% off bulk offer.

• • Likers remaining from Round 1 and 2 will receive this final push.
  • Because you are dropping the price by another 10%, you capture buyers who were waiting for a deeper discount.

By using this method, you ensure every liker gets multiple chances to buy, while you retain the highest possible profit margin for that specific buyer.

Set Up Automatic OTL (Your First Tier)

Before starting waterfall rounds, configure Automatic OTL to send an instant offer when someone likes your item:

Before starting waterfall rounds, configure Automatic OTL to send an instant offer when someone likes your item:

1. Go to Actions tab > Automatic OTL
2. Set your starting discount (we recommend 10-15%)
3. Choose your shipping discount
4. Add any exclusions if needed

This becomes your first tier of the waterfall. Every new liker automatically starts here.

Learn more: Automatic OTL

Method 1: Sending Waterfall Offers Manually

You can execute this strategy manually using the Bulk Offers tool.

1. Open the PosherVA extension and go to the Actions tab.
2. Select Send bulk offers.
3. Configure Round 1: Set your "Offer" percentage (e.g., 25%) and your "Shipping Offer".
4. Set Protections: Strictly set your Minimum net earnings to ensure you don't sell below your profit threshold. You can also exclude items by condition (NWT/Boutique) or recency.
5. Run the Offer.
6. Wait a few days, then repeat the steps with a higher discount percentage (e.g., 35%) for Round 2.

Method 2: Fully Automating Waterfall Offers (Recommended)

You can "set it and forget it" by using Scheduled Bulk Offers. This allows you to set up your waterfall rounds once, and PosherVA will run them automatically every week.

Step 1: Schedule the First Tier

Note: If you already use Automatic OTL to send immediate offers (e.g., 10% or 15%), you can skip this step or start your scheduled waterfall at the next tier (e.g., 25%).

1. Go to Actions > Send bulk offers and click the Schedule button.
2. Set the discount to 25% (Make sure this is 10% lower than your Automatic OTL setting, so if your Automatic OTL is 10%, you can set up here 20%).
3. Set your Minimum net earnings and exclusions.
4. Select a specific day and time (e.g., Mondays at 7:00 PM).
5. Click Create Schedule.

Step 2: Schedule the Second Tier

1. Open the Schedule modal again to create a new schedule.
2. Set the discount to 35% (must be at least 10% lower than Tier 1).
3. Keep your protections (Minimum earnings) in place.
4. Select a later day (e.g., Wednesdays at 7:00 PM).
5. Click Create Schedule.

Step 3: Schedule the Final Tier (Optional)

1. Create a third schedule.
2. Set the discount to 45%.
3. Select a later day (e.g., Fridays at 7:00 PM).
4. Click Create Schedule.

Result: Your closet will now automatically cycle through offers. New likers will get caught in your Automatic OTL (Phase 1), while older likers will gradually move down the waterfall to the higher discounts.

Best Practices for Waterfall Offers

1. Price to Accommodate Your Strategy

List items high enough to absorb your full waterfall. If your final offer is 45% off, ensure your listing price still allows for acceptable profit after all discounts and fees.

2. Space Your Rounds Appropriately

Allow 2-3 days between waterfall tiers. This gives buyers time to consider each offer without creating offer fatigue.

Good spacing:

• Monday: 25%
• Thursday: 35%
• Sunday: 45%

3. Use Minimum Net Earnings

Always set a minimum profit threshold. PosherVA automatically skips items that can't meet your minimum at the current discount level.

4. Protect Premium Items Strategically

Use exclusions to protect your most valuable inventory:

• Newly listed items (first 3-7 days)
• NWT and Boutique condition items
• High-value items or consignment pieces

This lets you send aggressive offers on most items while preserving profit on premium inventory.

5. Be Consistent

Waterfall offers work best with regular timing. Whether twice weekly or every three days, consistency ensures likers move reliably through your offers.

6. Monitor Your Results

Check your Poshmark insights to see what percentage of sales come from OTL. Track which waterfall tiers generate the most conversions to optimize your strategy over time.

Quick Start: Set Up Your Waterfall Strategy Today

Step 1: Set Up Automatic OTL

Configure your automatic offer to 10-15% discount. This is your first waterfall tier.

Step 2: Choose Your Waterfall Tiers

Decide on 2-3 additional tiers (e.g., 25%, 35%, 45%).

Step 3: Configure Bulk Offer Settings

Set up your preferences for minimum earnings, exclusions, and shipping discounts.

Step 4: Create Schedules (Optional but Recommended)

Create a schedule for each waterfall tier:

• Tier 1 (25%): Monday & Thursday at 7 PM
• Tier 2 (35%): Wednesday & Saturday at 7 PM
• Tier 3 (45%): Sunday at 7 PM

Step 5: Monitor and Optimize

Watch your sales increase and adjust timing or discount levels as needed.

Frequently Asked Questions

Q: Do I need to track which likers are at which stage?

No! Poshmark's 10% rule handles this automatically. When you send a 35% offer, only likers who previously received 25% or less will get it. You just run the rounds—the system does the rest.

Q: What if someone already received a larger offer months ago?

Offers expire after 90 days. After 90 days, you can send any offer percentage and they'll receive it.

Q: Can I use different strategies for different parts of my closet?

Yes! Use the Subset of Items feature to filter by category or brand, then apply different discount tiers to different subsets. Learn more about filtering.

Q: How many waterfall tiers should I use?

Most sellers use 3-4 tiers (including the automatic offer). More tiers mean more opportunities but longer sales cycles. Start with 3 and adjust based on results.

Credits for the strategy and explanation to @erynnthereseller 🙌 Follow her for more seller tips.

Updated on: 12/09/2025