What is luxury resale?
If you’re new to the luxury resale world you might be asking yourself some questions about this business. This is why, on Resellers Connector we want to give you some insights to understand what luxury resale is and what it entails.
We answer all your questions about luxury resale and show you that if you want to delve into the world of Hermès resale, it is a profitable business that you can do long term to generate income and turn it into a passive income source.
Don’t miss this guide and learn everything about luxury resale!
- What is luxury resale?
- Is buying luxury goods an investment?
- Is it illegal to resell Hermès handbags?
- Why do people buy second hand luxury?
- Is reselling a good business?
- How do you make money reselling luxury items?
- How big is the luxury resale market?
What is luxury resale?
Before we start answering other questions, we want to explain to you what luxury resale is. Luxury resale is a business that entails investing in a luxury item to sell it once it has been revalued. This system allows the investors to seize the money they have put into a luxury asset and then have a bigger return over the years, often preserving the item as a collector’s piece, or using it but keeping it as intact as possible.
Luxury resale has been around for decades, but with the rise of technology it has reached new horizons and now the market has spread, allowing deals between resellers in different corners of the world. Inside the luxury resale market, handbag resale is the most profitable one, thanks to the exclusivity of some brand’s bags that can obtain impressive values over time.
The luxury bag resale is dominated by Hermès and Chanel, two brands with a legendary history and high-quality products that are sold only to special clients. Hermès is a brand that has positioned itself over all its competition, and its Birkin bag is currently the highest revalued bag of all time, doubling and tripling the retail value on resale. This is why Birkin handbags are often auctioned in renowned auction houses such as Christie’s.
Is buying luxury goods an investment?
As we mentioned before, luxury resale is based on investing to sell the items in the future. Purchasing luxury goods is a profitable investment if you know exactly which goods can give you a high return. Hermès handbags are usually the best luxury items to invest in, especially the Birkin and Kelly handbags, two accessories that are not only very coveted for their exclusivity and scarcity in the official stores but also because they are proven to revalue with the passage of time. The Birkin bag alone has obtained a 38% revalue rate in the last years, and it is expected to increase with time.
Buying luxury goods can be considered an investment if done correctly, researching the highly valuable items and looking for the characteristics that can give them more value. For example, investing in a Hermès Birkin handbag is already a fantastic move, but if you make sure to purchase a classic combination of skins and colors, it will be very coveted in the luxury bag resale, so you can obtain good returns. However, you can also opt for a combination of exotic skins, such as crocodile, lizard, or ostrich, in combination with bold colors, and these bags will also revalue tremendously because of the materials.
So, buying luxury goods is an investment if you make informed decisions, purchase highly coveted items and define if you are going to keep the items as collection pieces, or if you are going to use them while keeping them in the best condition possible. Remember that pre-loved or used handbags are also sold on luxury resale, but they may not get a value as high as the ones that have never been used.
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Is it illegal to resell Hermès handbags?
Now you know that Hermès handbags are the most profitable items to invest in and sell in the luxury resale market, you might be wondering something that everyone is afraid of: Is it illegal to resell Hermès handbags? And as scary as it may seem, this activity is not illegal at all. Here we explain why!
Purchasing a Hermès handbag, either from an official store or a Hermès reseller is considered a legal activity because in the end, all the bags come from the official store, so they were all legally purchased. By selling them to someone else you’re not engaging in an illegal activity because all you’re doing is selling an asset in which you invested to someone else who is investing in it.
Luxury resale becomes illegal only when resellers do brand usurpation, taking the name of the brands to sell the products as if they were representatives of Hermès or authorized retailers. Another way in which luxury resale is considered illegal is when people sell stolen handbags either from official Hermès stores or professional reseller’s stocks, this is highly illegal. Also, we can’t fail to mention the counterfeiting of Hermès handbags, if a reseller sells fake Hermès bags to clients and make them believe they are authentic, it is also considered an illegal activity.
However, as you can see, legally purchasing a handbag from an official store, or from trustworthy resellers that bought it in official stores, to later keep selling it to someone else, is not illegal, since you own the item and you obtained it by a legal and rightful channel. And as much as luxury brands try to spread misconceptions about luxury resale, this activity is not actually damaging the intellectual property or rights of the brand in any way.
Why do people buy second hand luxury?
As you have already seen, luxury brands tend to have certain products that are considered exclusive, either because they are not produced in massive quantities, or because brands limit their sale in their official stores. The limitation of sales is done to keep the exclusivity of the items, increasing the demand for them, and with it, the price people need to pay to get them. And sometimes, when clients manage to obtain a handbag from the official stores, they are not exactly in the skin, color, or hardware that they are looking for, but they need to settle for it if they want to purchase it.
By not being able to purchase a luxury item easily, some clients don’t want to waste their time on waiting lists assembled by official stores, and they go to luxury resale to get the specific handbag that they desperately want. A great majority of the luxury bag resale is conformed by pre-loved or second hand luxury bags because they mostly belonged to clients that were able to buy them at the moment, and that now are seeking to sell them to someone else.
This is the reason why people buy second hand luxury because sometimes they don’t get more options, and although there are some never used or new handbags that can be found on luxury resale, they are not as easy to come by.
Is reselling a good business?
As we mentioned above, luxury resale has proven to be a very profitable business, especially when it comes to luxury bag resale, because if you invest in the correct handbag, you can obtain double or triple the value you paid initially. The great advantage of luxury resale is that most of the items always revalue if kept in good condition, and they can even obtain higher values if they are made with exotic materials or if they belong to a limited collection.
This is why we can assure you that reselling is a good business for those who have enough income to start investing in Hermès handbags. By doing this, getting informed, and researching the market, you can slowly start to get a privileged position between Hermès resellers and see the returns of your investments. As we mentioned earlier, the Hermès resale business can even lead you to obtain passive income that you can save for your retirement, or you can invest into a different asset to keep multiplying your finances.
How do you make money reselling luxury items?
However, the real question that you may be asking is: how do you make money reselling luxury items? And although it may seem complicated, it is actually easier than you expect, it all comes down to investing in the right handbags and finding the ideal channel to start posting the luxury items for their resale.
These are the main factors to start making money reselling luxury items:
- Invest in a proper handbag that can revalue with time.
- Preserve its integrity and materials so it can keep its value or increase it.
- Take pictures and collect details about the handbag to show it to clients.
- Consider creating a social media profile to advertise your luxury resale business.
- Connect with Hermès resellers’ communities to buy and sell handbags faster.
On Resellers Connector we help you to start a handbag business from home, we offer you some tools so that you can manage your business properly and make money reselling luxury items. Check out what do you need to become a Hermès reseller and how to get it.
How big is the luxury resale market?
As you have testified by now, the luxury resale market is a very broad field of opportunities that is diverse in the type of items that can be found in it. The luxury handbag resale is the biggest and most profitable business, not only including Hermès, but also Chanel, Louis Vuitton, and many other brands with exclusive handbags that are not easily accessed.
The objective of the luxury resale market is to seize the scarcity of luxury items in official stores to resell them and make a stable income. So the luxury resale market can be traced to products that are not as easy to purchase in regular luxury retails or official stores, just as the handbags from Hermès, Chanel, and Louis Vuitton, as well as some Rolex watches models, as they are such exclusive items that they are becoming very difficult to purchase.
All of this leads to the luxury resale market and luxury resellers that put the products out there for the clients that are willing to pay for them. This is how the luxury resale market is very wide, and it is not only limited to fashion accessories, but also high-luxury vehicles, real estate, and even fine wines.
We hope we have clarified some of your doubts regarding the luxury resale market and how you can create income by seizing your investments to the maximum.
If you’re ready to become a Hermès reseller and you want to give your first steps into the luxury bag resale, learn how to become a Hermès reseller and start now.
Do you want to be part of our community of Hermès handbag resellers? Become a member today and enjoy a great range of benefits to improve your business and learn how to be successful.
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