Luxury authentication and resale
Luxury authentication and resale

All About Luxury Authentication & Resale

12.6.24

The internet and social media shifted attitudes toward luxury resale in the fashion industry. In the past, price-conscious consumers who wanted to emulate high fashion had to spend hours scouring thrift store racks, checking back-page listings for sample sales and shopping estate sales or settling for knockoffs that couldn’t withstand a single laundry cycle.

With smartphones and apps, including TheRealReal, connecting shoppers with people consigning their gently used items, it’s easier than ever to buy coveted big-ticket items for considerably less than retail. Globally, the luxury retail market reached an estimated $39.23 billion in 2023.

But consumers shopping an extensive resale marketplace looking for their fashion faves have also been duped by sellers peddling fakes up and down the internet. That’s why luxury authentication is so important. A thorough luxury authentication process helps protect customers from paying for inauthentic merchandise. Here, we break down all the steps of a rigorous authentication process and help you spot the fakes, so you can maximize your resale income if you’re interested in consigning with TheRealReal.

Why Authentication Matters

As someone who consigns with us, authentication helps you get the most money for your resale items. Like a well-crafted, reliable car, authentic luxury items hold their resale value over time. High-end jewelry made of precious metals and gems can fluctuate based on the value of its materials, but the brand itself can also impact its resale value. Tiffany & Co., Cartier, Van Cleef & Arpels® and David Yurman hold their value well, due in part to their unique design.

Because brands such as Rolex only manufacture a limited supply of each collection, these items also hold their resale value. Well-crafted, limited-edition handbags also retain their value, particularly if the bag is timeless. The Hermès Birkin Bag and Kelly Bag both resell at a high value due to their exclusivity and classic design.

Authentication also helps a reseller’s reputation. At The RealReal, we are well-known as a trusted resale brand in no small part because of our authentication process. If a resale site or an individual seller lets too many counterfeit items slip through the cracks, it damages their credibility. Buyers will shy away from doing business with you because they can’t be sure they’re getting authentic luxury items.

Knowingly passing off fakes as legitimate luxury items also puts you at risk of violating intellectual property laws. You could be fined and spend time in prison, so it’s best to skip the fakes altogether.

What’s Wrong With Counterfeit Merch?

Some people don’t see anything wrong with buying and selling counterfeit luxury goods. As a buyer, you might think that the designers have enough money, so getting a fake isn’t going to hurt their bottom line. However, many of these dupes are made in factories run by criminal organizations with no worker oversight. These organizations mistreat their workers, subjecting them to long hours, low wages and poor working conditions.

Faux fashion isn’t regulated as well as legit luxury fashion, if at all. Counterfeit apparel, accessories and jewelry have shown traces of toxic dyes and chemicals, lead-based paint and other finishings, flammable materials and cheap metals. At best, your fake Cartier earrings will turn your skin green. At worst, you could have a severe allergic reaction to (or health complications from) the metal alloys in the jewelry.

How to Authenticate Luxury Consignment Items

There are a few different methods you can use to authenticate your luxury resale items. Counterfeit luxury items are improving all the time, and it can be harder to detect a Gucci from a Gocci. If you don’t trust yourself to spot the difference between a superfake and the real thing, you can take your item to an authenticator.

Many resale shops use AI-based software to verify products. The most popular program is called Entrupy. A store using this software will scan the item with a specialized device that breaks the scan into microscopic images. These images are compared with millions of online records of genuine and counterfeit versions of your item. Once the scan is completed, Entrupy will tell you if the item is real or unverified.

You can also have professionals authenticate your items. They typically follow these steps:

Photo Examinations

Authentication starts with photos. Take high-quality images of the item from multiple angles. Pay attention to distinctive brand details such as logos, fasteners and hardware. If you have proof of purchase or a serial number, include it in the photos. Authenticators will use the photos to assess the item’s overall condition and look for clues that the item could be fake.

For example, purses made by The Row are known for their impeccable craftsmanship. Taking pictures of the stitching helps an authenticator see variations in stitching patterns that could mean your bag is a dupe.

Physical Assessments

The next step is to authenticate the item in person. Photos can tell you a lot, but you can learn more about a product by looking at it and touching it. Logos, craftsmanship, materials and other features of luxury goods signal whether or not they are real. For example, a real gold Cartier watch will weigh more than a fake one made of cheap metal alloys that only look like gold. If you pick up the watch and it doesn’t feel heavy, you should be suspicious.

Even as a novice authenticator, you can pick up clues that your items may not be genuine just by thoroughly checking them out.

How to Tell If Your Luxury Items Are Real

The first step to making good money through luxury consignment is to build your reputation as a reliable seller. Knowing how to spot the fakes will save you a lot of potential headaches as you get started.

Handbags

A well-crafted handbag not only completes your outfit, it allows you to tote your life with you on the go without wearing cargo pants everywhere. Luxury handbags aren’t all the same, but you can use the same clues to sport a counterfeit regardless of the brand.

Start by looking at the materials. Many luxury handbags are made with quality textiles including calfskin, leather and suede. The dupes are usually made with PVC, vinyl or another synthetic material. The synthetics will be lighter than their counterparts with smaller grain patterns. Synthetic fabrics are also colder and unnaturally smooth. They also tend to have a plasticky smell.

Next, check the zippers and hardware. Luxury brands use high-quality finishes. If you notice bends in the zipper or if the zipper pull feels off track or flimsy, it’s a good sign your bag is fake. Feet and other decorative hardware should also feel like metal and not plastic.

Look at the stitching. A luxury bag will have uniform stitches inside and out. If some of the seams on your bag seem crooked or sloppy, you’re probably not looking at a genuine bag. Check the logo for uniformity, too. All the letters should align and they should be in the same font. The bag should have a stamp inside. Make sure the stamp matches any exterior logos and that the letters in the “Made in” stamp line up. A bag that says “Made in Italy” in a font that is different from any other stamp on the bag is likely fake.

Finally, check the serial number. Authentic bags will have a date code, serial number or another clue as to when and where they were made.

Jewelry

The easiest way to authenticate fine jewelry is with a letter of authenticity, but you can’t always get one. If you have a piece of heirloom jewelry or picked up your fine jewelry at an estate sale, for example, the original certificate could be lost. Some stores don’t even provide these letters in the first place.

If you don’t have a letter of authenticity, start by looking for the designer’s signature and hallmarks. These are official stamps or engravings that tell you the metal type and purity of a piece, along with other information such as where it was made. For example, Tiffany & Co. jewelry always includes a purity stamp with the metal composition such as “Sterling” for silver or “950” for platinum.

Next, check the materials. Like handbags, authentic jewelry is heavier than faux. Check the gemstones with magnifying glasses. Real gems are rarely uniform with no imperfections. If you don’t have enough experience to trust what you’re observing, purchase a testing kit.

Inspect your piece for distinctive elements. For example, if you’re buying a Cartier Love bracelet, you may be familiar with the iconic screws. Cartier screws are evenly aligned and clean without indentations. They are all flathead screws. If you see a Phillips head screw or a star screw, your bracelet is likely an imposter. Most designer pieces, including the Cartier Love bracelet, are engraved with the brand name. These engravings should be clean and uniform and should match the brand’s official logo.

Finally, consider the packaging. Like the letter of authenticity, you may not always have the original packaging. If you do, look at the box and its lining. A luxury piece will come in a well-made box with quality finishing such as velvet or satin. If the box lining is missing stitches or feels flimsy, your piece might be fake.

Clothing

Luxury clothing like what you’ll find on The RealReal is also known for high quality and excellent craftsmanship. The best way to spot fake clothing is through the materials and the workmanship. Similar to a designer handbag, you can usually tell a fake designer dress through its seams. Seams should be uniform and secure. If you’re trying on a pair of designer jeans that seem like they are about to tear, they probably aren’t authentic.

The workmanship isn’t limited to seams. An extravagant gown will feature beading, sequins or other embellishments sewn with precision and uniformity. Luxury dresses that are heavily embellished will also be heavy, particularly if they are made with glass beads, crystal beads or gemstones. Feel the fabric, too. Even if a luxury piece is made with a standard fabric such as cotton, it should feel durable.

Take a look at any logos on the piece. If the logo is crooked or in a different font from a classic logo, be suspicious (unless you’re buying a piece from a special collection such as Gucci’s 2017 “Guccy” line).

How to Maximize Your Resale Income With The RealReal

Spotting and rejecting fake merch is one of the easiest ways to maximize your resale income. If you’re hard to fool, you can easily build your reputation as a trustworthy person especially if you’re consigning on the RealReal. That’s the first step!

Next, focus on in-demand designers. Use resources such as our Insights and State of Luxury reports to learn what shoppers want and what’s moving fast. Staying on top of trends will help you curate a sought-after collection of luxury consignment items that people are excited to buy for top dollar.

When you have items to consign, make sure they are in excellent condition. Life definitely takes its toll on a wardrobe, so have your items cleaned before you sell them. Make sure you store them properly when you’re not using them, too.

If possible, keep the original packaging. Boxes, dust bags, cleaning cloths and other standard accessories can inspire people to pay for more luxury consignment pieces. If you have a letter or certificate of authenticity, take a picture, and include it in your listing.

Take high-quality photos from every angle. Our shoppers want to know what to expect when they order an item. Having multiple high-resolution photos in good lighting gives them a better sense of what a piece will look like when they receive it. Setting expectations upfront is also a great way to minimize your chances of having buyers return the item because it didn’t meet their standards.

Research an item’s market value before you decide to part with it. Just because you bought a purse for $1,200 in 2011 doesn’t mean someone in 2024 will be willing to pay that much to take it off your hands.

By learning how to detect fakes, doing some market research to curate your collection and consigning with TheRealReal, where we use rigorous authentication standards, you can boost your luxury resale potential. Chat with us today to learn more!

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