Is it illegal to resell luxury items?

Luxury resale has been a very common activity for a few years now, helping clients get the handbags that they desperately want and they can’t get easily from the official stores. Luxury resellers are professionals that have learned everything about fashion brands and are versed in the value of luxury accessories in luxury resale. However, some luxury brands have spread misconceptions about them, claiming that they are engaged in illegal activities.

In this article, we will show you the reasons why luxury resale is a legal activity and a perfect way to earn passive income with your investments. Keep reading and learn more!

  1. Is it illegal to buy and sell luxury items?
  2. Luxury brands’ point of view
  3. Luxury resellers’ misconceptions
  4. Investment to get passive income

Is it illegal to buy and sell luxury items?


Buying and selling have always been a regular activity for every business that has been created in the modern world, which means that legally buying an item from an official store to then selling it is a completely legal activity.

Luxury resellers are dedicated to this business primarily because they had luxury items that they bought in the past and they decided to get their money back by selling them. This business is actually an investment that is made to later receive higher retribution for it, so it is basically not so different from any other investment market out there.

Therefore, buying and selling luxury items is a legal activity, because it is not a crime to sell an item that was legally purchased as an investment.

Luxury brands’ point of view


Some luxury brands are very interested in keeping their exclusivity image, this is done by creating a high demand for the exclusive items and producing a few quantities of them to sell them in their official stores. This marketing strategy is the base for their success and the high pricing of their products. 

This is why luxury brands try to shut down every luxury reseller or personal shopper that buys from their official stores to later sell their products because this means that they don’t get to sell to the final client and that their products get distributed through another channel that is not their official stores.

Although this is a valid concern, luxury resale doesn’t infringe intellectual property or trademark laws, as long as the resellers don’t sell the products in the name of the brand. So this means that legally purchasing the products and keeping them in use or without use to sell them later, is not truly violating any of the luxury brands’ rights, it is just a way to invest and obtain returns from said investment.

Luxury resellers’ misconceptions


After some unfortunate events in the luxury market, such as counterfeiting, theft of merchandise, and identity usurpation, luxury resellers have gained a negative image in the luxury world, especially thanks to the myths spread by some fashion brands. And although some of these illegal activities were performed by people that labeled themselves as “luxury resellers”, or that took the name of the brand, the great majority of the luxury reseller community is not performing any illegal activities.

Luxury resellers are merely investors that buy and sell assets to clients who want to get an exclusive luxury item, or to other resellers who are looking to invest in certain pieces, so it is a market that operates within the law, hence the famous auctions that are performed to sell pre-loved or vintage luxury handbags, luxury reselling is essentially the same concept.

So, the misconceptions that some luxury brands have imposed over luxury resellers are false, this means that this activity is completely legal if it is done correctly, without brand usurpation, and selling only authentic products that can be traced from their purchase at the official stores.

Investment to get passive income


It is no secret to anyone that some fashion brand items are highly valuable products that can revalue with time, the best example is the Hermès Birkin bag with a 38% of return, this bag has revalorized at a 500% rate since its inception to the market in 1984. All of this makes luxury items a fantastic way to invest and get returns in the future with their sale.

This is why the luxury bag resale has been growing exponentially through the years, because it offers a very profitable investment for fashion connoisseurs, and it can even lead them to obtain passive income with time. Buying a luxury item, keeping it in the best shape possible, and then selling it to an interested client will produce a higher return than the initial amount paid for the bag. 

That’s how a professional luxury reseller can produce passive income by just buying and selling luxury products. We need to clarify that this is a legal way to invest and get earnings, without violating any laws regarding the official luxury brands. 

We hope we have clarified your doubts about luxury resale and hopefully debunk the misconceptions about this business. 

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