With recent quarterly reports showing growth and strong user engagement, The RealReal remains a reliable platform for buyers and sellers of pre-owned luxury items. Here's everything you need to know about The RealReal's operations, including a step-by-step guide for selling on the platform and an FAQ section addressing common questions.
Authenticity at The RealReal
When it comes to authenticity, The RealReal meticulously inspects each item. They utilize their skills to evaluate brand tags, leather quality, color shades, and monograms. This rigorous scrutiny complements their use of AI and machine learning to set optimal pricing, ensuring that every item listed is genuine. However, it's not without its errors, with past customers reporting that The RealReal sometimes needs to verify the authenticity of its items correctly.
Payment Processes
The RealReal offers various payment methods for sellers, including direct deposits, site credits, or physical checks. Sellers can earn up to 85% of the sales price, making it a lucrative option in the resale market. You also have the flexibility to choose how your unsold items are handled after the consignment period, whether opting for their return or donating them to charity.
Canadian Equivalent
For those in Canada, The RealReal offers a specific selection of luxury items under its FRR Canada section. This line features various leather and fur accessories, hats, and coats, adhering to the same rigorous authentication and quality standards as their U.S. offerings.
Step-by-Step Guide to Selling on The RealReal
- Account Creation: Create a seller account on The RealReal’s website. Provide your contact and payment information to set up your profile.
- Item Submission: After creating an account, schedule a free virtual appointment or in-home pickup, or opt for direct shipping to send your items to The RealReal.
- Authentication and Listing: Once received, your items are authenticated, photographed, and listed online. AI and machine learning algorithms help set an optimal selling price based on current market trends.
- Sales Process: Your items are displayed across The RealReal's online platform and potentially in retail stores. The platform may also apply discounts to expedite sales.
- Payment: If your item sells, you receive a percentage of the sale price. You can choose to receive payment via direct deposit, site credit, or physical check.
- Unsold Items: If your item doesn’t sell within the consignment period, opt to have it returned, re-purpose it, or donate it to charity.
FAQ Section
Q: How does The RealReal ensure the authenticity of items?
A: The RealReal employs over a hundred experts who inspect each item for authenticity, using their expertise to evaluate brand tags, leather quality, and more. AI and machine learning also aid in setting optimal prices.
Q: Is The RealReal ethical?
A: Absolutely. The RealReal partners with brands committed to sustainable practices and actively promotes circular fashion. They announced key initiatives as recently as June 2024 to highlight their ethical stance.
Q: How are payments made to consignors?
A: Sellers receive payments via direct deposit, site credit, or physical check. The RealReal offers up to 85% of the sales price, which is significantly higher than many competitors.
Q: What happens if my item doesn’t sell?
A: If an item remains unsold, you can choose to have it returned, re-purposed, or donated to charity, all at The RealReal's expense.
Q: Does The RealReal have a Canadian equivalent?
A: Yes, The RealReal offers a dedicated section for Canadian users under FRR Canada, featuring luxurious leather and fur items.
Q: How has The RealReal been performing recently?
A: As of Q2 2024, The RealReal reported a year-on-year revenue increase of 10.8%, reaching $144.9 million. However, the guidance for the next quarter's revenue was slightly below analysts' estimates at $138.5 million.
