The women’s handbag market has seen dramatic shifts in shopping trends over the last few years. Consumers are now more inclined than ever to shop the resale market, and leading secondhand luxury reseller The RealReal has benefited tremendously from this shift, raising a total of $300 million in an IPO since the company was founded in 2011. The IPO, which came this past June, was not without its challenges, and the biggest bombshell came earlier this month in a CNBC investigative report. The report alleged thousands of online reviews stating poor customer service, damaged items and authenticity issues.
Reporters from CNBC spoke with both actual customers of TRR, as well as former employees, and the results were somewhat shocking. The article stated that one former employee revealed major flaws in the company’s authenticity process. Shockingly it was reported that copywriters who lacked the proper knowledge to successfully authenticate products were making the final decision on items from brands like Gucci, Prada and Chanel. The RealReal is no stranger to retaliation and last year The Fashion Law reported that Chanel itself filed a lawsuit stating claims that The RealReal has knowingly sold counterfeit Chanel bags.
Forum members on tPF have also been dissatisfied with TRR, and there’s a 108 page thread dedicated to customer opinions and experiences with the TRR. Members have reported a decline in customer service since the brands IPO in June. TPF member Haughty reported receiving a bag that was “grossly misrepresented” in terms of color and quality of the actual bag she received versus what was shown in photos. TRR did refund her purchase, but eventually re-listed the bag with the same doctored photos. Another user, msloulou, stated a problem with the company’s customer service, reporting that “they’re terrible about responding to emails and the wait time to talk to someone on the phone is [ridiculous]”. The complaints go on, and early last week, TRR issued a press release in response to all of these claims.
The RealReal has the most rigorous authentication process in the marketplace. We are the only resale company in the world that authenticates every single item we sell. There is no other resale company doing more to remove fakes from the market every day and put counterfeiters out of business.
Founder and CEO, Julie Wainwright, spoke directly to The RealReal’s community of buyers and consignors stating that “The RealReal has the most rigorous authentication process in the marketplace. We are the only resale company in the world that authenticates every single item we sell. There is no other resale company doing more to remove fakes from the market every day and put counterfeiters out of business.” Additionally, despite the multiple claims against them, Wainwright insisted that TRR follows a “quality over quantity” authentication process.
The press release went on to describe in detail the company’s “rigorous” process, which puts a focus on brands or items deemed ‘high-risk” such as the Hermès Birkin. The release did also state that since the brand was first founded in 2011, the scope of the copywriter roll has changed dramatically as the business has grown. Wainwright promises that, though copywriters are now playing a roll in the authentication process, they receive “initial and ongoing” training to be able to successfully authenticate items.
In short, Wainwright promised that TRR is not only committed to selling only authenticate luxury goods, but that they are to dedicated to maintaining customer trust and loyalty. Now that secondhand luxury shopping is more prevalent than ever, shoppers have a plethora of options, and only time will tell how these claims will impact TRR’s business overall.
To go from founding (2011) to IPO (2019) in 8 years is a crazy growth trajectory. It’s one thing for software companies – once you’ve built the product, there’s little additional cost in selling to 1,000 customers versus 10,000 customers and instantly shipping product to all of them. The overhead comes from maintenance+upgrades and the sales+marketing+support organization that sprouts up around the core product.
It’s much harder when your product or service is physical, whether it’s Lyft/Uber rides, WeWork office spaces, or secondhand Birkins. Every incoming piece of designer merch is a liability until the end customer buys it: the cost of intake, storage, verification, display, shipping, and so on.
I don’t think vintage reselling easily lends itself to scaling (particularly at the breakneck speed demanded by investors) because it’s impossible to have standardized, repeatable operational processes when each and every piece of product is different and requires individualized attention. TRR should have stayed a private company, IMO!
There are a lot of posts across all luxury forums about fake items being sold by TRR. I wouldn’t purchase from them. Also, they only have a handful of photos available, which I find aggravating when you want to purchase an item that costs thousands of dollars.
Agreed re: the pictures, but I have called to request more and they text them. However, what they consider “pristine” is laughable. Pristine to me means “store fresh” and frequently there are visible scratches, minor corner wear, etc. A few years ago I purchased a medium Lady Dior that arrived smelling like mildew. They have a “no returns” policy on handbags, but I called and informed them and they took it back. Then, years later I purchased a Gucci bag deemed to be in “excellent” condition, but what I received was in poor condition and they took it back. After these two mishaps I was done shopping at TRR.
I asked for more pictures for a particular bag and this is what they said
“Thank you for your interest. Additional information on this particular item aside from the description currently on the product page is unavailable.
If you purchase the item and find that the description was inaccurate, we would be happy to help accommodate a return.
Please let us know if you have any further questions and again, we apologise for the inconvenience”
my bag is meant to be delivered today, hopefully. does anyone know if they do accept return items if the item isn’t in the condition they listed it as or how easy or difficult the process is. I mean they said they would but I thought they didn’t accept returns on handbags.
What bag did you purchase if you dont mind me asking? 🙂
Yes, depending on who answers the phone I have heard that, too. I’m sorry that I didn’t remember that when I posted. However, despite their “no return policy” when I received bags in poor condition they allowed me to return them, but I had to pay return postage. Hopefully, your bag will be to your satisfaction and you’ll have no worries.
it actually just got delivered and i’m pretty happy with it! but i haven’t compared the pictures on the original listing to the actual handbag to see if theres any differences and ill post it in the authentication forum just to double check but i’m pretty happy overall, it does have a musty smell about it but i didn’t expect it to smell like roses lol and its definitely in better condition than i expected, just needs a wipe over with some leather conditioner i think. so if it checks out authentic, i’ve had a positive experience with them.
Well, that’s great! So nice that it worked out for you! Also, I recently discovered that activated charcoal eliminates odors. Amazon sells it and it really works! Perhaps, if you put one of the packets in your handbag for a few days the odor will be gone. Good luck and enjoy your bag!!
Thank you, that is important information for us buyers.
You are welcome! I learn a lot from reading what other’s post, as well.
I went to Rebag and TheRealReal shops in Soho. The bags at Rebag were in fantastic condition. The bags marked “good” were in excellent condition. The bags marked “excellent” looked like new. In contrast, many of the bags at TheRealReal were in rough shape. Regardless of authenticity, I would be hesitant to buy from TheRealReal.
I think TRR’s prices are more competitive vs. other luxury resaler’s like Rebag, Fashionphile, etc. Since TRR is all consignment, you will most likely find more variety in terms of condition, but they do have standards (I both buy & sell on TRR). I’ve found some really great deals on that site for both bags and shoes, both in overall very good condition. No complaints here. I’ve tried selling some of my bags to Rebag, but their offers are always way too low. Fashionphile has been a better option for me in terms of quick cash/direct buyout. Otherwise everything I’ve ever consigned on TRR has sold (jewelry, shoes, bags, etc.).
I find the RealReal to have a very tough authentication process. I have sold on the site and I know where the bags are from, the condition of the bag, and how much I paid. I think you can find some exceptional bags for the price you pay at the RealReal. I have also purchased and loved what I purchased so I have no issues with them. I wouldn’t think twice to purchase from them.
I’ve been buying from TRR for about 5 years. I have no complaints. If I have an issue and e-mail, I’ve never waited more than 24 hours for a response. I’ve been shopping secondhand for over 3 decades, and I’m extremely picky. I have no patience for foolishness. If I had an issue, I would move on.
All of these online secondhand stores have their issues. I’ve seen many people return things to Fashionphile, Reba, and Vestaire Collective. If I’m not mistaken, Fashionphile sold a stolen bag to a customer. I have no idea why people seem to pick on TRR.
TheRealReal has also sold stolen bags. Nobody picks on TheRealReal, they just earned their reputation. I have bought about a dozen of items from them, and I blindly trusted their non-existent authentication process. When the reports about fake items on TRR started to come out, I authenticated my items from TRR, at least half of those items turned out to be fake. It was too late for me to return the items because I had bought those items one year prior to hearing about the fake items and fake authentication process. They would get into a lot less trouble if they marketed themselves as marketplace like ebay or poshmark, not a luxury consignment that supposedly guarantees authenticity.
Same here.
Just curious, have you used another authentication service when looking to purchase from TRR?
That is a great question! I would never have thought to do this!
I have just ordered my very first bag from the TRR and my first ever ‘designer’ purchase and im waiting for it to arrive. I read quite of a lot of bad reviews for the website so i was very nervous about ordering from there but i wanted to try it for myself. I was also made a comment about the bad reviews and fakes on TRR to Jessica Clements, who’s a model, the other day after she mentioned purchasing some items from there and she said she has returned two items in the past that were fake as well as seeing fake items in their stores. I just dont understand how they can say one thing and seem to do the complete opposite. I’ll be interested to see what my item is like when it arrives!
I’ve spend thousands on Real Real items and have always been delighted with my purchases.
I’m not buying that they have “the most rigorous” authentication process in the market. Says who? Was this independently verified? What other resellers did they compare themselves against? Without a comprehensive independent verification of this claim and the published report to go along with it, this is just hot air and spin — which makes me trust them even less.
Oh and don’t even get me started about the condition of items. A couple times I bought clothing from there just to receive it with Cat hair on it or dirty feet residue on shoes! That’s disgusting! They don’t even clean anything!
Exactly. Who says!? They can’t even describe items properly! Or take decent photos. If you state there is a hole or some damage, where’s a photo so I can see AND ZOOM IN on the damage?!? I don’t trust them either.
I’ve never bought anything from them for the #1 reason is that their prices are higher than many other places. I have also seen bags that were named incorrectly and that made me look elsewhere. if you can’t even get the name right, come on. I emailed them about it and they argued with me and never changed it.
Please contact me. They sold a birkin that was stolen from me.. after knowing it was stolen they blocked my phone number and never replied to emailed after “investigating”. I have emails that’s prove everything. Even a police report.
Did you get an attorney involved in your case? Sometimes, they are your greatest resource.
I’ve had great success with RealReal. My only issue is that sometimes when you purchase a vintage item, it smells like mothballs, or in the case of a Burberry jacket..I-95 rest stop toilet deoderizer. One of my Chanels smelled like old lady for a long time, so I stored it in a bag with lavender and all was well. I do agree that they sometimes list bags and “minimize” the wear..but all my stuff is authentic. I’m a veteran consignment and thrift shopper, and my husband was in retail for 30 years, and overall I am pleased with how the site does business.
I’m confused-you write an article voicing the concerns about authenticity and after viewing the CNBC report which was pretty damning. You recommend The RealReal in your shop section located at the top of this page.
i’ve bought several items from TRR and later tried to re-sell them to other consignment sites, only to find out “quality issues, manufacturer’s flaws, or other factors made them be rejected…” I’ve even tried to re-sell items to TRR (purchased originally from them) only to have them rejected for similar issues. I much prefer other sites, now, esp for jewelry.
I’ve purchased clothing from TRR and have had no bad experiences. I am aware of the complaints about the company, so I always go for brands I’m very familiar with, and I buy nothing extremely expensive. I have never bought a handbag from TRR because of its no-return policy, though I’ve had many in my “wishlist.” Just can’t pull the trigger because I can be very impulsive about bags and need to be able to return if I change my mind. I have also received bags from other resellers in the past that were not necessarily misrepresented, but after receiving the bag and seeing its condition I’ve felt disappointed and decided that scuffs, scratched hardware or worn corners I thought I could live with ended up ruining my enjoyment of the bag, so I’ve returned them. I appreciate that some people have received refunds from TRR for handbags that were grossly misrepresented, but in the type of instance noted (not really misrepresented, but something that appears minor in a photograph ends up impacting my enjoyment of the bag in real life), a return policy is a must. After all, my interpretation of “very good condition” can be very different from a reseller’s interpretation, and neither one of us is strictly right or wrong. Just … gah. I can’t imagine spending $4,000 on a preowned Chanel handbag only to be disappointed when I receive it and then having no recourse. This is especially true when direct competitor sites like Fashionphile and Yoogi’s have generous return policies (and even Rebag has something like a 4-day return window, which is sufficient when you know right away that a bag is disappointing).
I think buying from TRR is like doing any type of resale buying, there is risk involved. Ive bought quite a few bags from there and only twice have I been really disappointed. And the one time, I couldn’t live with it. The bag came to me smelling like moth balls. I called them up, explained the issue and they took the bag back with no problem. All that being said, I would not buy Chanel or Hermes from an internet resale website.
It’s unfortunate that the media especially CNBC piles on a company that is addressing a market that is sustainable.ive been dealing with TRR for over 5 years both consigning and buying on their site. The home pick up service is excellent and the reps I’ve dealt with are professional and very accommodating. I’ve purchased alligator Hermès wallets that have been near perfect condition and they are happy to take back items unless it’s a final heavily discounted item.
The fake industry has become really good and it can be impossible to be. 100% accurate in detecting fakes.ive sold over 50K merchandise on their site . Sure sometimes I’m not happy with their pricing which can be lower than my expectations but they sure know the market.Overall they are best of class as far as I’m concerned.my one complaint would be that their shipping charges for furniture is horrendous as they out source it.
The last Balenciaga tote I consigned was returned as they were unable to authenticate it, I had misplaced the original receipt from Paris and could not send it with the bag.
I would gladly do business with them any day.
The only place i’d trust buying second hand luxury goods from is Japan – they really have a VERY rigorous process. They inspect everything down to the T with magnifiying glasses – Brand Off, L’ecrin – all are great resellers. There are other ones so if you are looking to score your first H from a secondary market and happen to be in Japan it’s worth a look.
I’ve seen many fakes on TRR and most people cannot tell minor details for luxury bags – if you’ve ever held one “yuan dan” a.k.a. “also from production line” fakes, you will know what i mean – it’s frightening how close they are to what you see at Gucci / LV / Dior counters.