Selling second-hand luxury goods online can be overwhelming for any seller, especially when there are so many platforms out there. This is where the RealReal comes in handy - it allows sellers to get a good value from their investments, and buyers can purchase authentic designer goods at discounted prices.
The RealReal platform is the world's largest online consignment store offering a wide range of luxury goods. You will find items from top designers like Chanel, Louis Vuitton, Gucci, and Hermès for much less than the retail price.
Marketing your pre-loved luxury items is a lot harder than you think. It is more involved than just taking a photo, adding the listing title, and writing a product description. Counterfeited items are all around the internet, and some shoppers are doubtful about buying luxury items online. So, is selling your second-hand luxury items worth it on the RealReal? What does it entail, and how can you sell your luxury goods?
This article will answer all these questions, including the RealReal fees, commission structure, and the pros and cons of selling here.
What is The RealReal?
The RealReal is the world's largest luxury resale online consignment platform. It has gained popularity because it sells not only new products but also second-hand items in good condition. It is easy to become a seller on The RealReal platform as you just need to fill out an application, schedule a pick-up for the item or items you want to sell, and get paid once your item sells.
The RealReal is a trusted resource for authenticated luxury resale, as they thoroughly check every item to ensure it is genuine before listing it on the website. Their main goal is to extend the life cycle of luxury items while retaining their beauty and value so that many people can still own and appreciate their beauty.
The RealReal provides an opportunity for many people to own luxury items at a discount and empowers more people to contribute to a more sustainable and circular future of fashion. The RealReal aims to contribute to a sustainable fashion that affects a broader social change where consumption is conscious consumption.
The RealReal platform values three things: Authentication, Sustainability, and Community.
The RealReal claims to provide the most stringent authentication process in the marketplace. They are the only marketplace to authenticate every single item they sell to remove fakes and guarantee each buyer that they only purchase authentic luxury items. The RealReal states that their authentication is a brand-specific approach overseen by 100+ experts from luxury brand authenticators, gemologists, and horologists.
Every item will undergo a series of examinations and be categorized as low-risk or high-risk items. All high-risk items are sent to authenticators specializing in specific categories to ensure no counterfeited items will be listed on the platform.
The RealReal values education and makes sure its experts keep up with the trend and are constantly changing, driven by new technologies like machine learning and AI to help prevent fakes. Certain at-risk items are pulled for further review. With all these authentication processes and internal procedures, The RealReal ensures they are the most secure place to buy and sell authenticated luxury items.
The RealReal platform's mission is to extend the life of luxury and help sellers sell their luxury items at a reasonable price. Reselling is an excellent way to extend the life of the things you no longer want while earning cash and contributing to a more sustainable future.
As fast fashion dominates the industry, it also leaves an unwanted trail of pollution and waste. The RealReal ensures that your contribution will positively impact the environment. They also work collaboratively with like-minded brands to start their commitment to sustainability.
The RealReal commitment to sustainability focuses on the three Rs. Resell, Revive, and Reimagine.
- Resell - Reselling your luxury items retain their beauty and value, allowing many people to appreciate their beauty. All of The RealReal users, whether you are buyers or sellers, play an essential role in reducing the carbon footprint of luxury goods on the environment.
- Revive - The RealReal knows that expertly crafted items are long-lasting. The platform repairs and restores luxury items so they can be reused, resold, or be part of the upcycling initiatives. Things that cannot be up-cycled will not go through landfills but will be donated or go through textile recycling.
- Reimagine - The RealReal continues to build relationships with leading global luxury brands to create a more sustainable future. The platform is expanding its circle of influence and establishing new industry standards and best practices that impact social change positively.
The RealReal is devoted to creating a more sustainable future of circular fashion. The RealReal delivers different perspectives to solve problems in more meaningful ways. The RealReal community, together with all its members, addresses inequities that Black, Indigenous, and People of Color (BIPOC) continue to face. The RealReal is committed to supporting and empowering diversity in fashion and business.
How to Sell on the RealReal
The RealReal is a luxury resale consignment site that provides a safe and secure way to sell high-end clothing, accessories, handbags, jewelry, and watches. You can quickly sell your gently-used luxury items in three easy steps.
- Sign Up - Simply include your first and last name, email address, phone number, and zip code in the initial registration form. After signing up, choose between scheduling a pick-up, ship, or drop-off of the luxury item you want to sell.
- Leave it - The RealReal team of 100+ experts will examine the item, determine if it's an authentic luxury item, then do all the work to sell your item fast. It lets you earn up to 85% of the sale price!
- Get Paid - RealReal provides many payment options to get your income. You can choose direct deposit, site credit (with an extra 5% each month), or mailed check.
How The RealReal Prices Your Items
Unlike other marketplaces where the seller gets to decide their listing prices, selling on the RealReal offers you less control. The RealReal determines the cost of your luxury item based on its pricing strategy defined by the current market trends.
The RealReal uses dynamic and real-time advanced pricing algorithms for innovative pricing derived from internal data and external market trends. While having no control over the pricing of your luxury items sounds unfavorable, the RealReal ensures that your items will be sold at the highest price the market will demand. Here are the four factors that determine the best prices for your items:
- Brand Resale Value
Best-selling brands retain their value over time. Some top brands increase over time due to continued demand in the primary and secondary markets. Brands with high resale value include Chanel, Louis Vuitton, Gucci, Hermès, Rolex, and Cartier. So if you are looking forward to selling one from these brands, you can guarantee a high resale value.
- Market Trends
The fashion industry is constantly changing. The RealReal uses internal and external data to capture real-time insights, determining the trending patterns, colors, styles, and silhouettes to maximize the value of your investment.
- Item Condition
The price of your items depends on the condition you sent them. The RealReal accepts luxury items that meet one of the following criteria:
- Good (Prominent wear)
- Very Good (Moderate wear)
- Excellent (Perfect but without tags)
- Pristine (with tags)
The closer your luxury items are to pristine condition, the higher resale value they will have.
Similar to the market trends, the newer your items are, the higher the resale value they will get. But there are exceptions, especially for rare vintage items, which drive up the resale price.
How and When Do You Get Paid?
The RealReal offers three payment options where sellers can receive their earnings. You can choose to receive your payment via direct deposit, site credit (with +5% each month), or opt to be mailed a check once your item sells.
Commission payments are issued every 15th of each month, following the month your items were sold. For example, if your Cartier love bracelet was sold on November 20th, you will receive your payment on December 15th. If you wish to trade, you can receive your compensation via site credit within two weeks. Otherwise, if you choose to Get Paid Now, you can receive your payment via direct deposit.
To better understand these commission payment methods, let's breakdown the basics:
- Direct Deposit - It is the easiest and fastest way to get commission payments. You can receive your income automatically deposited into your bank account.
- Site Credit - This is ideal if you also buy in The RealReal. You will receive your payment as a site credit with an extra 5% on your commission that you can use to purchase things you like in the RealReal. Site credits do not expire and cannot be converted to cash unless the balance on your account is less than $10.
- Mailed Check - Sending a check after your item sells is the default payment method of RealReal. However, checks may require more extended processing and shipping time.
You may update your payment method anytime from your My Sales page and choose your preferred payment method.
Pros & Cons
With RealReal's seller guide, it'll be easier for you to decide if selling here is worth it. Here are some of the pros and cons of this platform:
- Easy sign-up - You can quickly sign up in less than a minute. After you create your account, you can choose whether to schedule a pickup, ship your item, or have it drop off so that RealReal can examine and start selling your items.
- Good website traffic - As of January 2022, The RealReal has over 24 million members, which gives you an extensive range of potential and interested buyers.
- Offers a wide range of categories - The RealReal provides various categories. From luxury handbags to watches, women's to men's, The RealReal caters to them all. It provides you with many ways to resell your luxury items to earn extra cash.
- Straightforward payment methods - The RealReal handles shipping and payment processing, unlike other marketplaces. After your items sell, you must wait for your earnings to arrive on your preferred payment method.
- Supports sustainability - Many shoppers are bringing the green movement. If you support the environment, being part of RealReal's effort to conscious consumption would significantly reduce your carbon footprint and be part of their advocacies.
- Sellers don't have control over their items - Unlike on other marketplaces like Poshmark and Mercari, you don't have control over how you want to list your items. From photos to pricing, the RealReal will decide everything for you.
- Long waiting time for your payments - In most selling platforms, you will get paid within 5-14 days after you ship the item. However, in RealReal, you must wait until the 15th of the following month to get your commission.
- The site can discount the item whenever they feel like it - The RealReal claims that they can sellyour items within 30 days. If your item does not sell in 30 days, The RealReal can discount them until it is sold. The longer your item is listed on the website without selling, the more discount can be applied to drive demand. The promise of selling your item in 30 days is not often met, leaving The RealReal to discount your item as much as they please.
- Sellers can't manage their items once the site has them - Once the item reaches The RealReal headquarters, the seller won't have any control over their items. Sellers must wait for their items to be sold on the site before getting their payments back. From marketing to shipping, RealReal takes care of everything.
- Sellers must wait for 30 days or pay $15 if they want to request their items back - If the seller changes their mind and no longer wishes to sell their luxury items on the site, they must wait for 30 days or pay $15 per item. Waiting 30 days or paying a large fee just to have your own item returned to you is less than desirable to most sellers.
While The RealReal helps many sellers in listing and selling tasks, you must still consider the cons that come with it. The RealReal is ideal for sellers who simply want to get rid of their luxury items and are looking for a way to earn a small amount of cash. If you are not concerned with making the most on your investment and do not mind the lower profit margins, The RealReal is an option to consider. It is also important to remember that once you ship it on the RealReal, you will no longer have control over it as The RealReal states plainly in their contract with sellers that they become the sole owners of your goods for 30 days.
Grow Your Resale Business with OneShop
Selling your luxury goods in The RealReal or other marketplaces like Poshmark, Depop, and Mercari can take an investment of time, effort, patience, and money. While there are many things you must consider before you let go of your prized possessions, you must also look at a different picture and try other things that can help you sell your items fast.
Giving your items away on consignment to sites like The RealReal poses significant risk. Many sellers leave their experience with The RealReal wishing they had done the work themselves. In the end, photographing, writing a description, and a simple title aren't daunting tasks. Managing your listings can be difficult but using tools like OneShop can make the entire selling process easier and save you the headache of having to deal with problems with The RealReal.
One efficient way to sell your luxury items quickly is by cross-listing or cross-posting them to other marketplaces to connect with a bigger audience, giving you a higher chance of selling. Cross-listing is one of the secrets of power sellers to capture more customers and drive more sales.
Gone are the days when you had to sit all afternoon, painstakingly copying each listing on different marketplaces. Thanks to automation services like OneShop, you can now do all the listing and cross-listing tasks not just on your computer but on your mobile phones as well.
OneShop is the only automation service that works seamlessly on your smartphones, letting you create a listing in the easiest and fastest way possible. It provides a listing screen where the listing action menu is more straightforward, allowing you to draft a listing effortlessly, add enough information, fill up the description, and publish whenever you want to.
You can also quickly browse suggested sizes and categories to save you more time and have much control over your listings. OneShop works tirelessly to help resellers like you do more with minimal effort.
In addition to these excellent tools, OneShop also provides features beyond automation. OneShop does not only help automate listing tasks for you but also lets you set the default shipping methods, schedule package pick-ups, and track seller performance.
Trusted by thousands of resellers, OneShop is your reliable partner in helping you grow your reselling venture. Try this today and enjoy a 7-day free trial. Sign-up here and experience the benefits it provides to resellers like you!