From zero to $173 million with The RealReal

“In a recent article by Recode with The RealReal, the company’s founder Julie Wainwright, their success as number one in the secondhand luxury category was discussed. The RealReal is different from a few online e-commerce shops as far as offering luxury brands go. Many fashionistas have considered ThredUp, which has just recently begun selling luxury items with their budget-free items in the last year. Poshmark has turned their focus away from only offering used clothing; and then Tradesy has a peer-to-peer platform that allows sellers to ship their items straight to the consumer; very similar to E-bay. With having many competitors in the e-commerce luxury industry, The RealReal may have figured out how well they can do within the secondhand market offering luxury goods than they had previously thought. Realizing how the growth rate they have had thus far, they are more the confident as a company to have even greater success growth. Julie Wainwright, the founder of the luxury fashionista site specializes in selling secondhand clothing from popular and expensive brands like Gucci and Louis Vuitton.

The RealReal offers a consignment platform for its consumers. This means that sellers ship their items to the company and the company then sells the items and takes a percentage of the profit — usually around 50 to 60% split with the seller. Although it has never been said directly, years have gone by where luxury brands viewed the site as the enemy. Wainwritght spoke publicly for several years saying that the next private funding would be the last only to give the green light for a new investment. The company has a dedicated in-house authentication team that carefully inspects each item to ensure they are not fakes several times before they are placed on the website, though some counterfeits have still slipped through the cracks.

The RealReal has gathered a total $173 million since its launch seven years ago. The secondhand luxury consignment start-up has also been maintaining a brick-and-mortar store in the SoHo district. Founded in 2011 by Julie Wainwright, the RealReal has expert staff members who are trained in-house. The staff members include gemologists, horologists, art appraisers, apparel experts, and horologists, who work together to ensure the items that are sold are authentic and in remarkable condition.” Find out more about The RealReal: https://www.forbes.com/sites/pamdanziger/2018/02/27/vintage-luxury-etailer-the-realreal-pops-up-in-las-vegas/#7b09691016a0

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