Selling pre-owned luxury items can be a great way to declutter your closet and earn some extra cash. But navigating the world of online consignment shops can be daunting, especially regarding fees. One popular platform for selling luxury goods is The RealReal (TRR). This blog post provides a comprehensive guide to TRR’s fee structure, helping you make informed decisions about consigning your valuable items.
Table of Contents
- Introduction to The RealReal
- Consignment Process at The RealReal
- Commission Structure Breakdown
- Additional Fees and Considerations
- Comparison with Other Platforms
- FAQ Section
Introduction to The RealReal
The RealReal (TRR) stands out as a leading online consignment shop specializing in luxury goods. It offers a convenient and secure platform for selling designer clothing, handbags, jewelry, and more.
TRR is attractive to sellers for several reasons:
- Convenience: TRR simplifies the selling process. They handle everything from authentication to photography, listing creation, and shipping, making it hassle-free for sellers.
- Expert Authentication: TRR employs a team of expert authenticators who meticulously inspect each item to guarantee its authenticity, providing buyers with confidence and peace of mind.
- Profit Potential: TRR offers competitive commission rates and potential bonuses, allowing sellers to maximize their earnings.
This post will take you through TRR’s fee structure step-by-step so you can understand exactly how much you’ll earn when your items sell.
Consignment Process at The RealReal
Let’s break down the consignment process at The RealReal into three simple steps:
Step 1: Submitting Your Items
- Brand and Item Selection: Begin by identifying the brand and specific type of item you want to consign. TRR provides a user-friendly interface to guide you through this process.
- Free Shipping and Pick-up: A key advantage of selling with TRR is their offer of a free prepaid shipping label. You can conveniently drop off your package at a designated shipping location. For added convenience, TRR offers a complimentary pick-up service through UPS for select locations (typically a $25 value).
- Processing Time: After TRR receives your items, they will take approximately 2-3 weeks to process them. This includes authentication, photography, and listing creation.
Step 2: Authentication and Listing
- Expert Authentication: TRR’s authentication process is a crucial step that sets them apart. Their specialized team of experts carefully examines each item to ensure its authenticity. This process assures buyers that they are purchasing genuine luxury goods, building trust and credibility for the platform.
- Photography and Listing: TRR takes full responsibility for photographing your items. They typically take three professional photos to showcase your item effectively. You don’t have to worry about taking pictures yourself. Additionally, TRR creates the listing for your item, using the information you provide during the submission process.
- Selling Price: TRR sets the selling price for your items based on their market expertise, current trends, and the item’s condition. While you don’t directly control the pricing, TRR’s White Glove service may offer pricing consultation for specific items, giving you more input on the selling price.
Step 3: Sales and Payout
- Seamless Sale Handling: Once your item is listed, TRR manages the entire sales process. When your item sells, you’ll receive a notification. The platform handles buyer communication, payment processing, and shipping.
- Commission Structure: TRR’s commission structure is tiered, meaning the percentage they take varies depending on the final selling price of your item.
Commission Structure Breakdown
The table below outlines TRR’s standard commission rates:
| Selling Price | Commission Rate |
|---|---|
| $0 – $149 | 40% |
| $150 – $199 | 50% |
| $200 – $299 | 60% |
| $300+ | 70% |
Store Credit Bonus: If you choose to receive your payout in the form of store credit, TRR rewards you with an extra 10% bonus on your commission. This can be a lucrative option for sellers who frequently shop on the platform.
Direct Deposit: If you prefer a direct payout, TRR offers direct deposit to your bank account.
Additional Fees and Considerations
Shipping Costs
The RealReal covers the cost of shipping when you send your items to them for consignment. This includes providing you with a free prepaid shipping label and, in some cases, a complimentary pick-up service.
Return Shipping
If your item does not sell within the consignment period or if TRR determines it is not suitable for their platform (e.g., condition issues, not an accepted brand), they will typically return it to you free of charge. However, there might be some exceptions to this policy, such as items that are heavily discounted or items that the seller chooses to donate to charity instead of having returned.
White Glove Service
TRR’s White Glove service offers a premium consignment experience for higher-value items. While this service may come with additional fees, it can also potentially result in higher commission rates and a more personalized selling experience, including pricing consultations.
Potential Discounts
TRR regularly runs sales and offers sitewide discounts on their platform. These discounts can impact the final selling price of your items, which will affect your commission payout. It’s essential to be aware of these potential price fluctuations when calculating your potential earnings.
Comparison with Other Platforms
Fashionphile
Fashionphile is another popular online consignment platform for luxury goods. While they have a similar consignment model to The RealReal, there are key differences to consider. Fashionphile is known for its focus on high-end designer handbags and accessories, and they do not accept all brands that TRR does, particularly Coach. Their commission rates may also differ, and it’s recommended to compare the commission structures of both platforms to determine the best option for your specific items.
eBay
eBay offers a broader marketplace for selling pre-owned items, including luxury goods. While you may potentially receive a higher payout for your item on eBay compared to The RealReal, you will need to invest more time and effort into the selling process. You’ll be responsible for taking your own photos, creating the listing, handling shipping, and interacting with potential buyers. You also bear the risk of returns and potential disputes.
FAQ Section
- Q1: Does The RealReal accept all brands?
- A: No, TRR accepts a curated selection of luxury brands. Check their website for accepted brands.
- Q2: What happens if my item doesn’t sell?
- A: TRR will usually return the item to you free of charge. However, they may offer to relist it at a lower price or donate it.
- Q3: Can I negotiate the selling price of my items?
- A: Generally, TRR sets the selling price. White Glove Service may offer pricing consultation.
- Q4: When do I get paid after my item sells?
- A: Payouts are processed once the buyer receives the item and completes the return window (typically a few weeks).
- Q5: Can I use my store credit on anything on The RealReal?
- A: Yes, store credit can be used towards any purchase on the platform.