For most brick and mortar consignment shops, the easiest way to make money is charging the people who consign their items a high fee. They know they can make money from the people who want to sell their clothes and other goods, but that wasn’t something the RealReal wanted to do. Instead, they wanted to make sure they could help their consignors. They saw them as one of the biggest parts of their business and wanted to show people they did what they could to help no matter what issues they were having while they were trying to get rid of their clothing. The RealReal felt good about their mission and also felt they had a chance to do more than what others did in the past. It was their goal of giving back to the consignors and the customers that led to them making decisions that are different from what others did in the past.
By the time they started doing things that would set them apart from others, the RealReal made a lot of money. They had already funded most of their money for success with crowdfunding and raising money from investors. They wanted to do more, though. Now that they’re getting even bigger than they were in the past, they have to make a lot of investments. Their chance to invest the right kind of money is coming and they believe they have the ability to make things easier on their own. Their goals involve them making things easier and making it better for people to try.
The industry changes, but consignment shops generally stay the same. The RealReal knew this was true, but they wanted to start challenging that myth. They wanted to make themselves a real consignment shop that was online. People wouldn’t have to worry about how they would get there or what they would do with their stuff. Instead, they could all shop online. People could even consign online. The RealReal works by sending out consignors prepaid shipping materials so they can get money for the stuff they offer. They do this so they don’t have to worry about visiting a brick and mortar location.