Dive Brief:
- Luxury reseller Rebag announced a new consignment option last week, according to news release.
- The new sales model will offer customers upfront resale quotes on their items, generated by the company’s Clair AI technology, as well as fixed commission rates that range from 8% for watches valued at more than $50,000 to 35% for handbags valued at less than $750.
- The announcement follows a similar play by eBay, which launched a luxury handbag consignment service earlier this month.
Dive Insight:
The global fashion resale market is heating up, and as a result, many companies are reevaluating their strategies in order to stay competitive. In the U.S. alone, the secondhand market is expected to reach $70 billion by 2027, according to a 2023 report from reseller ThredUp.
For Rebag, the addition of a consignment option will complement the company’s existing trade and buyout practices, per the release, and offer customers more ways to engage with the platform.
"We're thrilled to introduce Rebag Consignment, a truly revolutionary offering," Charles Gorra, CEO and founder of Rebag, said in the release. "Our groundbreaking version of Consignment comes with disruptive features that are differentiated from others in the market. It is designed for sellers who want to maximize earnings, while retaining visibility and control over the entire selling process. This launch marks our latest step in reshaping the luxury resale market by offering innovative solutions and exceptional service."
Commission rates vary by item, but sellers will be able to self-generate the quotes in advance of sending in an item, so they can assess whether the resale value matches their expectations. Prices are created by Rebag’s proprietary AI system, which sellers can access using the Rebag app or its e-commerce site.
After sending an item in, Rebag inspects the piece and authenticates it. The company currently accepts 43 luxury brands including Telfar, Hermès, Chanel and Louis Vuttion, which are the top-selling labels on the site, according to an email sent to Fashion Dive by a company spokesperson.
“All brands and designers that Rebag accepts for buyout and trade options will now also receive consignment offers,” the spokesperson said.
In 2021, Rebag raised $33 million in Series E funding, bringing the total amount the company has raised to $101 million. At the time, the company said it would use the funds to improve its tech tools, which include the Clair AI system and a digital wallet. The company also earmarked some funds to expand its footprint beyond the digital realm, and it currently has five brick-and-mortar locations.
