Understanding The RealReal's Fees: What Sellers Need to Know

The RealReal Fees: A Complete Guide to Consignment & Commission

by

Thinking about clearing out your closet and earning money from your luxury goods? The RealReal has emerged as the world’s largest marketplace for authenticated luxury resale, offering a streamlined way to sell your designer items. But before you start packing your boxes, it’s crucial to understand the platform’s fee structure and commission rates to know what you can expect to earn.

This comprehensive guide breaks down everything you need to know about the real real fees, from commission tiers to payment schedules. We’ll explore how does the real real work for sellers and provide the clarity you need to decide if consigning with the real real is the right move for you.

Table of Contents

How Does Selling on The RealReal Work?

Before we dive into the numbers, it’s helpful to understand the consignment process. One of the main appeals of the real real consignment is that the company handles the heavy lifting for you, from authentication to photography and listing. How does selling on the real real work? It’s a straightforward process.

First, you need to get your items to them. There are three primary ways to do this:

  1. At-Home Pickup: If you have ten or more eligible items, you can schedule a free concierge pickup service in select areas. A representative will come to your home to collect your goods.
  2. Free Direct Shipping: For those with fewer than 10 items or outside a concierge area, you can request a free, prepaid shipping label to send your items to one of their authentication centers.
  3. In-Store Drop-Off: You can visit one of The RealReal’s retail locations to drop off your items and meet with an expert in person.

Once your items arrive, The RealReal’s team of experts, including gemologists and horologists, authenticates, inspects, professionally photographs, and prices each piece. They then write a detailed description and list it on the site for their millions of members to shop. This end-to-end service is designed to make the process as easy as possible for sellers. If you want to know how to sell on the real real, this is the basic flow.

The RealReal Commission Structure: How Much Do You Earn?

The most important question for any consignor is, “how much does the real real take?” The answer depends on a few factors, primarily the type of item and its final selling price. The RealReal commission structure is tiered, meaning you earn a higher percentage on more valuable items.

Unlike a flat fee, therealreal commission is designed to reward sellers for high-value and in-demand pieces. This dynamic system means that understanding what percentage does the real real take requires looking at the specific category of your item.

Here’s a simplified breakdown based on the official the realreal commission chart. Note that these are base rates, and you can earn more through the RealReal Rewards program, which we’ll cover next.

  • Handbags: The real real commission for handbags is particularly favorable. You can earn up to 80% on bags that sell for over $7,500. For bags selling between $1,500 and $4,999, the rate is 70%.
  • Watches: Watches also command a high payout, with sellers earning up to 85% for pieces over $7,500 and 80% for those between $5,000 and $7,499.
  • Branded Fine Jewelry: For branded jewelry selling for over $750, the commission rate is 70%.
  • Clothing, Shoes, and Accessories: For most other categories, including apparel and unbranded jewelry, the commission starts at 20% for items under $100 and goes up to 70% for items that sell for over $5,000.

For items with a sale price of $199 or less, the commission rates are fixed and do not include loyalty bonuses. For example, the rate is 45% for items sold between $150-$199 and drops to 20% for items sold under $99. This answers the common question, “what percentage does the real real give you” for lower-priced goods.

Understanding The RealReal Rewards Program

To further incentivize sellers, The RealReal offers a loyalty program called RealReal Rewards. This program allows you to earn a higher real real commission rate as your total net sales increase over a one-year period. Your status in the real real commission tiers determines your loyalty bonus, which is added to the base commission for any item that sells for $200 or more.

Here are the four tiers:

  1. Trendsetter: (Net sales under $1,499) This is the starting tier with a 0% loyalty bonus.
  2. Influencer: (Net sales of $1,500 – $4,999) Earn a +1% bonus on top of your base commission.
  3. Tastemaker: (Net sales of $5,000 – $9,999) Earn a +2% bonus.
  4. VIP: (Net sales of $10,000+) This top tier gives you a +5% bonus, along with other perks like a complimentary First Look subscription and a $100 welcome credit.

So, if you are a VIP and sell a handbag for $2,000 (which has a 70% base commission), you’ll receive an extra 5%, bringing your total the real real commission split to 75%. This system directly answers how does real real commission work, as it clearly rewards frequent and high-value sellers.

Payment Options: How and When Do You Get Paid?

Once your item sells, you’re probably wondering, “how does the real real pay?” The RealReal offers three convenient payment methods, allowing you to choose what works best for you.

  • Direct Deposit: The fastest and most recommended option. Your earnings are deposited directly into your bank account.
  • Site Credit: If you’re an avid shopper on the platform, you can opt for payment in site credit and receive an extra 5% on your commission. This credit never expires and can be used on any purchase.
  • Mailed Check: You can also choose to receive a physical check, but be aware there is a $12.50 non-refundable fee deducted from your payment for this service.

As for the timing, many people ask, “how long does the real real take to pay?” Commission payments are issued on the 15th of each month for all items sold during the previous calendar month. For example, if your item sells in January, you will be paid on February 15th.

Are There Other Fees to Consider?

While the platform is primarily funded by its commission, there are a few other potential costs consignors should know about. Answering “how much does the real real charge” involves looking beyond just the commission.

The most significant fee for sellers is the early return fee. If you decide you want an item back before the 365-day consignment window ends, you will be responsible for fees associated with the return. This includes a fee of $20 for most items or $100 for fine art, home, and other oversized items, plus any associated shipping costs to have the piece sent back to you. After the 365-day period, you can request your items back, and The RealReal will cover the cost.

This policy is in place because The RealReal invests significant resources in authenticating, photographing, and listing each item. Therefore, the real real seller fees primarily come into play if you change your mind about selling an item after they have processed it.

Frequently Asked Questions

How much commission does the real real take?
The amount of commission The RealReal takes varies by item category and selling price. For items selling for under $99, sellers earn 20%. For high-value items, you can earn up to 90% of the sale price. For example, top-tier VIP sellers can earn 90% on watches and men’s sneakers that sell for over $7,500 and $1,000, respectively. The realreal commission structure is tiered to give sellers a larger share for more expensive items.

What is the real real commission rate?
The real real commission rates are dynamic. For example, for most clothing, the base rate is 55% for items selling between $200-$299 and 70% for items over $5,000. For high-demand categories like watches, sellers can earn up to 90% of the sale price. You can find a detailed the real real commission guide on their website.

Does the real real take a percentage of sales?
Yes, does the real real take a percentage is a common question. The company operates on a consignment model, meaning they take a percentage of the final sale price as their fee. This is the real real commission fee, and it covers their services, including authentication, photography, marketing, and shipping.

What brands does the realreal accept?
The RealReal accepts hundreds of luxury and contemporary designers. The list is regularly updated to reflect market demand. Before consigning, it’s best to check their official Designer Directory. Some of the most in-demand brands include Hermès, Chanel, Louis Vuitton, Gucci, Cartier, and Rolex. If you’re asking what does the real real accept, checking this list first is the best step.

Does the real real buy outright?
Yes, for certain high-demand watches, jewelry, and handbags, does the real real buy outright is an option through their “Get Paid Now” program. This allows you to receive payment upfront without waiting for your items to sell on consignment. You can choose payment in cash or receive 5% more in site credit.

Is it worth it to sell on the real real?
For many, the answer is yes. While the real real selling fees are a factor, the platform offers access to millions of buyers, handles all the logistics, and its authentication guarantee often allows items to sell for a higher price than on peer-to-peer sites. Whether is it worth it to sell on the real real depends on the value of your items and your desire for a hassle-free process. Looking at selling on the real real reviews can also provide insight from other sellers.

How is my item’s price determined?
The RealReal uses a dynamic pricing model that considers brand resale value, current market trends, item condition, and recency. Their team of experts and data algorithms work together to set the highest price the market will support. You can use their site to get a general idea or a the real real payout estimator for what similar items have sold for.

How much of a cut does the real real take?
This is another way of asking about the commission. How much of a cut does the real real take is not a fixed number. For a $300 dress, a starting consignor earns 60%, so The RealReal’s cut is 40%. For more valuable items, their cut is much smaller. For example, on a $6,000 watch sold by a top-tier VIP consignor, the seller earns 85%, meaning The RealReal’s cut is only 15%. For watches over $7,500, a VIP seller earns 90%, so The RealReal’s cut can be as low as 10%.

What is the real real consignment fee?
There is no upfront fee to consign. The what is the real real consignment fee is essentially the real real consignment commission taken from the sale price. The only direct fee a consignor might face is if they request an item back before the 365-day period is over.