The RealReal Sets the Record Straight on Its Authentication Process
November 12 2019 - 5:00PM
The RealReal (Nasdaq: REAL)—the world’s largest online marketplace
for authenticated, consigned luxury goods—today issued the below
letter from its Founder and CEO, Julie Wainwright, to its community
of buyers and consignors.
To Our Buyers and Consignors:When I started The
RealReal from my kitchen table, I knew earning customers’ trust
would be foundational to building this business. Over the last
eight years, we have worked tirelessly to gain and maintain your
confidence by creating a safe, reputable marketplace for
authenticated luxury consignment. Over time, our community of
hundreds of thousands of customers have instilled their trust in
us—82% of our gross merchandise volume (GMV) is from repeat
buyers1, 81% of our GMV is from repeat consignors2, and we have a
best-in-class customer satisfaction rating of 703, measured by our
Net Promoter Score, which is higher than Nordstrom’s and Apple’s
scores4. Doing anything to jeopardize this trust would not reflect
our values, or frankly, be good for business. Here are some key
facts:
In October 2019 alone:
- We received nearly 490,000 products for consignment on our
platform.
- We rejected just over 4,000 products due to concerns uncovered
during authentication, and prevented these counterfeit goods from
reaching the market.
- Another 139 products were rejected by our Quality Control team
before being posted on our site.
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.
Our Process: Quality over QuantityWe have a
rigorous, brand-specific authentication process:
- Items are received and identified as “high” or “low” risk based
on brand, value, style, etc. If there is a higher probability for
counterfeiting, the product is deemed higher risk in
authenticating.
- Items that are considered “high risk” (anything from an Hermès
Birkin bag to the hottest streetwear) are sent to authenticators
with significant authentication experience, who are highly
specialized in specific categories. Many of these authenticators
join The RealReal from the luxury brands themselves—like Tiffany,
Hermès and Rolex—or auction houses like Sotheby’s and Christie’s,
with a deep knowledge of the markers, materials and craftsmanship
behind genuine products. They assess each item based on these and
other characteristics.
- Items that are considered “low risk,” such as contemporary
brands with clear authenticity markers, are sent to be
authenticated by our copywriters, who receive deep training in
authentication, but whose title has become outdated.
- For context—when we originally launched our business, our
copywriters only wrote copy. As our business has grown, the
associated scope of their job has changed. Copywriters have been
receiving the initial and ongoing training required to authenticate
products, which has become an important element of their job.
- Within their first month on the job, we require that our
copywriters receive a minimum of 30 hours of training, including
onboarding, job shadowing, daily training sessions and quizzes. If
a copywriter ever has a question about an item, our high-risk
authenticators, all of whom have deep experience, are available in
person to discuss or review a product. All of our authenticators,
including copywriters, participate in ongoing daily and weekly
training sessions to discuss the latest counterfeiting trends as
part of our unending commitment to stay ahead of
counterfeiters.
- Finally, our dedicated Quality Control team provides an
additional layer of control to help prevent fakes from being sold
on our site, pulling certain at-risk items for further review.
While this extra step takes time, we do not sacrifice quality for
quantity.
Technology and Data Drive our Processes and Inform our
TeamsAs the largest marketplace for authenticated luxury
consignment, we have an extensive set of data—which serves as the
backbone of our authentication process and aids our teams. Among
other things, it’s leveraged to update algorithms that route the
highest risk products to our most experienced authenticators,
making sure that the riskiest products get the most scrutiny.
Our team works diligently and is constantly innovating to ensure
we maintain the highest standards and keep fraudulent products off
the market. Our authentication process—and all of our internal
processes—are changing constantly, driven by new technologies like
machine learning and AI. For example, we anticipate that much of
our copywriting and pricing will be automated using machine
learning in Q1. We’ll then modify the evolving structure of our
authentication team’s titles to better reflect their scope and
responsibilities.
Customer GuaranteeWe stand behind our business,
and importantly, if our customers aren’t happy or if they ever
question one of our products, we always make it
right.
If you would like to learn more about the sophisticated
technology and training that goes into authenticating every item we
sell on The RealReal, I encourage you to visit our recently
launched authentication web page:
https://promotion.therealreal.com/therealreal-experts/.
We will continue to work to maintain your trust and to provide
customers with the most secure place to purchase and sell
authenticated luxury consignment. As always, thank you for your
unwavering support of The RealReal.
Julie WainwrightFounder & CEO
About The RealReal Inc.The RealReal is the
world’s largest online marketplace for authenticated, consigned
luxury goods. With a rigorous authentication process overseen by
experts, The RealReal provides a safe and reliable platform for
consumers to buy and sell their luxury items. We have 100+ in-house
gemologists, horologists and brand authenticators who inspect
thousands of items each day. As a sustainable company, we give new
life to pieces by hundreds of brands, from Gucci to Cartier,
supporting the circular economy. We make consigning effortless with
free in-home pickup, drop-off service and direct shipping for
individual consignors and estates. At our stores in LA and NYC,
customers can shop, consign, and meet with our experts. At our nine
Luxury Consignment Offices, three of which are in our retail
stores, our expert staff provides free valuations.
Investor Relations Contact: Paul Bieber Head of
Investor Relations paul.bieber@therealreal.com
Press Contact: Erin Santy Head of
Communications pr@therealreal.com
______________
1 Based on GMV for the three months ended Sept. 30, 20192 Based
on GMV for the three months ended Sept. 30, 20193 Reflects TRR 2019
YTD NPS scores through Sept. 30, 20194 NICE Satmetrix U.S. Consumer
2018 and 2019
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