Whether you are a new or experienced seller, the luxury resale market is where you should be focused on if you are looking for a sustainable route to making huge profits!
The market value of luxury resale currently sits at $39 billion, although it is expected to reach $52 billion by 2026. In fact, a 2023 Luxury Resale Report found that luxury resale is growing 4x faster than overall luxury.
The key drivers for the growing preference for pre-loved luxury goods were found to be price, authenticity and sustainability.
This is all great news for sellers who are looking for a new side-hustle or even full-time income from reselling luxury items. Not only will you enter a highly profitable industry, but you will also promote circular, sustainable fashion and be part of something bigger!
Before going into detail about becoming a successful reseller, it is important to discover where to sell luxury items in the first place.
In this article, we have gathered the top 4 marketplaces to sell luxury goods:
The RealReal
Founded in the US in 2011, The RealReal has over 30 million members and 28 million sold items.
Summary
This is the world’s largest e-commerce platform for authenticated resale luxury items.
While their products range from homeware and art, the most popular categories are women’s and men’s luxury apparel and accessories; including watches, jewellery, and handbags.
In The RealReal 2023 Luxury Consignment, it was revealed that Prada and Simone Rocha were the most loved brands of 2022. Overall, there was a huge demand for vintage Y2K fashion, which has been continuously growing in 2023.
This can be attributed to the increase of Gen Z users, as the RealReal saw a dramatic rise in 2022. However, millennials remain the majority of sellers and buyers.
Being aware of the demographics of users is necessary for any reseller; not just to know what is going to sell more successfully, but to also predict popular fashion trends that may influence generational buyers on the app. This will allow you to source accordingly.
If you are planning on becoming a seller on this site, it is important to know that the marketplace does not accept items that are not designer.
Furthermore, the sellers cannot control the price of their listings. Instead, the platform does this for you depending on multiple factors such as the item’s condition, demand, and market trends.
This is why it is important to understand who your customers are!
Once you have signed up on the platform, you need to send your products to The RealReal distribution centre, where they will be inspected, authenticated, and listed on the site. When a sale is made, a payment will be made to your preferred payment method.
Fees
Sellers are paid between 20% and 85% of the set price per item. The precise percentage changes based on the brand and condition.
In addition to this commission, a 5% processing fee is added each time a payment is made to you.
To learn more about the way listings are priced at The RealReal, have a look here.
Authentication Services
If you are still wondering where to sell luxury items, The RealReal’s thorough authentication service may persuade you to sign up with them immediately!
The process is long and rigorous; making this marketplace a great choice for those who are looking to avoid common e-commerce scams.
Some key parts of the process include:
- Items are identified as ‘low risk’, or ‘high risk’ based on factors such as brand and market trends
- Gemmologists, horologists, and other brand authenticators assess items to verify their authenticity
- The Quality Control team provides an extra layer of protection through their additional review
Poshmark
Founded in the US in 2011, Poshmark has 8 million sellers and 7.8 million active buyers.
Summary
This popular marketplace is ideal for those wondering where to sell luxury items. While not strictly a platform for designer items, Poshmark is known for its luxury and limited-edition product listings. In fact, it is these categories that are the most profitable.
Due to its user-friendly interface, Poshmark is a great choice for new resellers. Just like most social media apps, this platform is set up so you can like, comment, and follow other Poshers.
Once you are signed up, all you need to do is create your virtual closet by adding all your product listings- including detailed descriptions, clear images, and other relevant information.
Top selling brands include Patagonia, Nike, Lululemon, The North Face, Coach and Gucci.
A Poshmark Bot can be a worthwhile investment when becoming a Posher! This is automation software that continuously shares your closet, relists/delists your products to always remain at the top of the search results and grows your followers with just one click.
As you probably know by now, becoming a successful reseller is a lot of hard work. This is why taking advantage of automation software can be the difference between having a small side gig to making serious profits!
Try the best Poshmark Bot on the market for FREE.
Fees
Unlike The RealReal, Poshmark allows you to set up your own prices. This is all great news, as you can keep most of the value once an item is sold.
While creating your virtual closet is free, you will encounter the following fees:
- Flat commission fee of $2.95 for items sold for $15 or less
- 20% commission fee for items sold for more than $15
- Flat shipping fee of $7.67 for items under 5lbs
- Additional shipping fees for items over 10lbs
Find out more: Poshmark Fees- The Definitive Guide
Authentication Services
Also known as Posh Authenticate, Poshmark offers this premium service for luxury items worth over $500.
As long as the item is over the set threshold, no fees are incurred for the authentication process. Frequent promotions on the service also include free shipping.
Once a buyer has requested for their item to be authenticated, it will be sent straight to Poshmark’s HeadQuarters, where a team of luxury reviewers will either verify the product’s authenticity or deem it as counterfeit.
Buyers are eligible for a full refund if an item is unable to be verified. This is why it is necessary for sellers to have clear images of the product before it is shipped, along with tags, receipts and any other documents that can prove its legitimacy.
Although this service appears to favour Poshmark buyers, it is particularly useful for sellers as well. Acquiring proof of authenticity through Posh Authenticate will not only prove the quality of your listings but will also establish credibility and trust between your shop and customers.
Furthermore, it acts as a barrier between you and potential scammers who may make false claims about the quality of your items.
Find out more: Common Poshmark Scams and How to Avoid Them
Grailed
Founded in the US in 2013, Grailed has over 10 million users.
Summary
This marketplace is a hotspot for high quality streetwear, designer and limited-edition items for men and women.
Unlike Poshmark, Grailed is limited to fashion categories such as apparel, shoes, and accessories. Therefore, if you are looking to sell art and homeware, this might not be the right place for you.
The top-selling brands of 2023 included Uniqlo, Tommy Hilfiger, Saint Laurent, and Gucci.
While the app is not strictly for luxury brands, it is known to be one of the most extensive marketplaces for high-end, designer fashion. Thus, it is worth giving the platform a chance if you have been wondering where to sell luxury items.
Selling on Grailed is a super easy process. All you have to do is sign up, set up your profile to stand out from other buyers and upload your listings.
Part of the process also includes choosing the right market for your products. The four options are: Grails (high value), Hype (high demand), Sartorial (Classics) and Core (mainstream). Choosing the right market for your listings will ensure that your shop is being shown to the relevant customer base, increasing your chances of becoming a top seller.
Find out more: How to Sell on Grailed
Fees
The only fee Grailed charges its sellers is a 9% commission fee each time a sale is made.
Depending on the payment processor your buyers choose, you may have to pay an extra fee. For instance, PayPal can charge 2.9% + $0.30 for domestic customers, and 4.4% + $0.30 for international.
You can calculate your fees here by using our free Grailed Fees Calculator.
Authentication Services
This large marketplace prevents fraudulent behavior by offering a thorough approach to product authentication.
All items that are labelled as high-risk must be reviewed either by in-house or machine moderators before they go live on sellers’ profiles. This can be seen by an authenticated verifier on the listing page.
On the other hand, if an item fails to be verified during the review process, the listing will be permanently removed, and the seller may even face permanent suspension!
Grailed’s team of experts determine whether an item is legitimate by assessing tags, logos, embroidery, and other characteristics that may be a telling sign of a counterfeit product.
Just as with any luxury marketplace, verified listings are a great way to build your shop’s integrity and attract more customers.
StockX
Founded in the US in 2015, StockX has over 34.2 million active users.
Summary
This multi-billion-dollar resale platform is a haven for limited-edition sneakers; perfect for self-proclaimed sneakerheads!
Although apparel and watches can also be listed, StockX is primarily known to be a sneaker resale marketplace.
Unlike most luxury e-commerce platforms, both sellers and buyers remain anonymous– this means that there is no need to spend too much time on building your profile.
Similar to eBay, a bid-based model is in place to ensure sellers and buyers alike get the best deals for the value of the listings. When a customer places a matching bid, the item will be automatically sold to them. It’s all very simple!
Find out more: Here’s How to Become a Sneaker Reseller
Fees
StockX fees vary depending on your Seller Level. There are 5 levels to this program and the higher you are positioned, the lower the transaction fees will be.
However, it is important to note that there is a standard additional payment processing fee of 3% on all sales.
The Seller Level transaction fees vary as follows:
| Seller Level | Transaction Fee (%) |
| Level 1 | 10% |
| Level 2 | 9.5% |
| Level 3 | 9% |
| Level 4 | 8.5% |
| Level 5 | 8% |
The use of a StockX fee calculator is recommended to ensure that you understand the gross profits you will make from each sale.
Authentication Services
This world-renowned marketplace for luxury items did not become top in its field without an impressive authentication service.
StockX offers a multi-step review to guarantee that the highest quality is being sold on their site. This includes a box construction review to ensure the packaging meets their standards, as well as glueing inconsistencies and other signs that may verify a product’s authenticity.
Unlike other marketplaces that only authenticate high-risk products, StockX verifies all listings. This examination takes place on-site at their Authentication Centers by their team of experts.
All in all, StockX users don’t need to worry about counterfeit products or false claims about their legitimacy, making this an ideal marketplace for selling luxury items.
Vestiaire Collective
This marketplace emerged in Paris, France, the platform serves a global audience with millions of users across 50 countries.
Summary
Vestiaire Collective is a leading online marketplace for pre-owned luxury and high-end fashion.
Its unique business model revolves around meticulously curating and verifying products for authenticity, thereby instilling buyer confidence.
Users can buy and sell a vast selection of high-quality secondhand items, ranging from clothing and accessories to watches and jewelry.
Similar to marketplaces like Poshmark and Depop, It’s not just a marketplace. Vestiaire Collective is also a community where fashion lovers can discover rare items, express their personal style, and participate in a more sustainable approach to fashion consumption.
Fees
An easy way to know Vestiaire Collective specializes in luxury items is the fact that they have minimum listing prices and very flexible fees depending on what you are selling.
Fortunately, It won’t cost you anything to list your items on Vestiaire Collective. However, upon the successful sale of your item, a Selling Fee equivalent to 15% of the sale’s final price will be subtracted.
However, this only applies if your item is between the price of £80 and £13,000
If your item is priced below £80 you’ll be paying a flat fee of £12. If your item is above £13,000 you’ll be paying a flat fee of £2000
Depending on what you are selling this could be good or bad news. Before selling on Vestiaire Collective you need to be aware that the marketplace has an additional payment processing fee of 3% on top of the selling fees.
Authentication Services
Vestiaire Collective has an established authentication service that is available as an option to potential buyers.
It costs about £15 to authenticate items with their in-house authentication service. In addition to authentication, Vestiaire offers quality control checks to make sure items are as described. If an order does not meet the requirements then the buyer is issued a full refund.
In Conclusion…
Becoming a luxury product reseller is a fulfilling side gig with sustainability at its core.
With the rise in popularity of pre-loved designer goods, there is no better time to choose a marketplace that suits your needs and start uploading your listings.
Alternatively, crosslisting is a great way to sell your items across multiple marketplaces at once. Not only will you receive greater visibility from different pools of buyers, but you will also minimize your risk of having low sales from selling on a singular platform.
Here at SellerAider, we make automation software that helps our customers crosspost their listings across multiple e-commerce platforms and get seen by thousands of potential customers.
After all, you are more than just customers to us. You are part of our community!