- Who runs The RealReal and how luxury consignment works
- The RealReal's authentication claims, in its own words
- Court cases and criticism of The RealReal
- Buying from The RealReal: returns and deadlines
- Consigning with The RealReal: how much sellers keep
- The RealReal at a glance
- Spotting fake The RealReal offers
- My take on whether The RealReal is legit
- Frequently asked questions
Yes, The RealReal is a legit luxury consignment company: founded in 2011, listed on Nasdaq, and reporting more than 38 million members, according to Wikipedia. It says it physically examines every item it sells. The catches are a tight return window, consignor payouts that depend on each item's category and price, and an unresolved Chanel lawsuit over counterfeit handbags.
Buying a pre-owned designer bag online takes a leap of faith, and selling one takes even more. The RealReal sits right in the middle of that trust question, so I've pulled together what its own authentication, returns and selling pages say, plus what the courts and the press have reported. You'll get both sides here, the reassuring and the not so reassuring.
Who runs The RealReal and how luxury consignment works
Wikipedia says The RealReal was founded in 2011 by Julie Wainwright and is based in San Francisco. It went public on Nasdaq in 2019 under the ticker REAL, and Rati Sahi Levesque became chief executive in 2024. It reports more than 38 million members and nearly 40 million items sold, which puts it among the biggest names in secondhand luxury.
It works on consignment. You send in or drop off designer pieces, The RealReal authenticates, photographs and prices them, and you earn a share when each one sells. Buyers purchase directly from The RealReal rather than from an individual seller, which is the main difference from most resale apps.
The RealReal's authentication claims, in its own words
The RealReal's authentication page says it physically examines every item. It describes a multi-step process that starts with a machine-learning tool called Shield, which looks at more than 50 attributes on each item to flag high-risk pieces for experienced authenticators. It also says it uses XRF machines to measure metals in jewellery, watches and hardware, and its FAQ says authenticators get at least 40 hours of training.
If The RealReal decides an item is counterfeit, it says the piece won't be returned to the consignor and will be destroyed. That's a strong policy, and worth knowing if you're unsure where a bag you're selling came from.
Court cases and criticism of The RealReal
This is the part fans of the site tend to skip, so I'll be straightforward. According to FashionUnited, Chanel first sued The RealReal in 2018, alleging it sold counterfeit Chanel handbags and used false advertising to suggest Chanel had authenticated its stock. A judge in the Southern District of New York later dismissed five counterclaims The RealReal had brought against Chanel, and FashionUnited reported that Chanel's own claims remain active. The case hasn't produced a final ruling on those claims.
Wikipedia also notes a securities class action filed in early 2020, which alleged that the company misled investors and that authenticators received little training and faced strict quotas. Those are allegations, and Wikipedia doesn't report a result. Neither case means you'll be sold a fake, but they're a good reason to inspect anything expensive the moment it arrives.
Buying from The RealReal: returns and deadlines
The RealReal's returns policy is stricter than many shoppers expect. You must request a return within 14 days of purchase in store or of the original shipment date, and send the item back within 21 days. In-store returns carry a restocking fee of 6.95 US dollars unless you're also making a purchase. For art, furniture and oversized items, you need to contact customer service within 14 days of delivery.
- The clock starts at shipment, not delivery, for most online orders, so check items as soon as they land.
- Read the item's own return note before checkout in case it's an exception.
- Keep tags and packaging until you're sure you're keeping it.
Consigning with The RealReal: how much sellers keep
The RealReal is a real way to sell designer pieces you no longer wear, but your share varies a lot. Its seller pages advertise that consignors can earn up to 85% on designer bags and up to 75% on coats, shoes and sunglasses. The words "up to" are doing the work there: those are maximums, and your rate depends on the category and the price the item sells for.
When it comes to getting paid, The RealReal's pages list direct deposit, a cheque, or site credit, and they say site credit adds an extra 5%. You also hand over pricing decisions, which is the trade-off for not having to photograph, list or answer buyers yourself.
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If you'd like more control, list a few pieces yourself and compare. The breakdown of how much eBay keeps from a sale is a useful comparison point. Regular selling may also have tax implications, so check with an accountant or your local tax office.
The RealReal at a glance
| What I checked | What The RealReal and named sources say |
|---|---|
| Founded | 2011, San Francisco (Wikipedia) |
| Members | More than 38 million (Wikipedia) |
| Authentication | Says it physically examines every item |
| Counterfeits found | Not returned to the consignor and destroyed |
| Return request window | 14 days from purchase in store or shipment |
| Return shipping deadline | 21 days |
| Consignor share | Up to 85% on bags, up to 75% on coats, shoes and sunglasses |
| Ongoing legal case | Chanel lawsuit filed in 2018, Chanel's claims still active |
Spotting fake The RealReal offers
Luxury names attract scammers, and The RealReal is no exception. Be wary of social media accounts selling "RealReal stock" at deep discounts, messages offering to buy your bag on The RealReal's behalf for a bank transfer, or emails about payouts that ask you to log in through a link. Real consignments and payouts are tracked in your The RealReal account.
Open the app or type the address yourself before acting on anything. And if consigning luxury pieces has you thinking about a resale side income, my roundup of side hustles that sit alongside a business is a good place to start.
My take on whether The RealReal is legit
The RealReal is a large, listed company with a detailed authentication process and clear return rules, so it's a legit place to buy and sell luxury. It isn't spotless: the Chanel case is still running, and returns move fast. Inspect anything valuable the day it arrives, know your deadlines, and treat the consignor rates as ceilings rather than promises.
Frequently asked questions
Is The RealReal legit and safe to buy from?
Yes. The RealReal is a Nasdaq-listed company founded in 2011. It says it physically examines every item, and you can request a return within 14 days of purchase or shipment.
Does The RealReal sell fake bags?
The RealReal says it physically examines every item and destroys items it decides are counterfeit. Chanel has sued, alleging counterfeit handbags were sold, and FashionUnited reported Chanel's claims remain active.
How much do you get when you sell on The RealReal?
The RealReal's pages advertise up to 85% on designer bags and up to 75% on coats, shoes and sunglasses. Your rate depends on the item's category and sale price.
How do The RealReal consignors get paid?
By direct deposit, cheque or site credit. The RealReal says site credit adds an extra 5%.
What happens if The RealReal finds my item is fake?
The RealReal says items it determines are counterfeit aren't returned to the consignor and are destroyed.
