The RealReal operates an online consignment marketplace for authenticated, pre-owned luxury goods, connecting sellers ("consignors") looking to monetize luxury items with buyers seeking authenticated goods at a discount. Top brands on the platform include Cartier, Chanel, Hermès, Louis Vuitton, Rolex, and Tiffany & Co., across women's fashion, men's fashion, jewelry, and watches. The RealReal handles authentication, photography, pricing, listing, and fulfillment on the consignor's behalf, then takes a commission when items sell — retaining roughly 38% of the sale price. Consignment revenue (~87% of total) carries ~89% gross margins, and since The RealReal doesn't buy inventory upfront, working capital improves as the business scales. The company also generates direct revenue (~13% of total) from items it purchases outright and resells, though this carries much lower margins (~20–25%) and is intentionally limited. The business is supply-constrained — sell-through exceeds 80% — so growth hinges on attracting more consignors, particularly high-value ones. To that end, The RealReal operates 18 physical retail locations where in-house experts (gemologists, horologists, handbag authenticators) build trust with high-value consignors; supply sourced through stores carries average selling prices 5x–7x higher than the platform average. The company also deploys a proprietary AI system, Athena, to automate item intake, authentication, and pricing, reducing cost per item processed. The RealReal cultivates "flywheelers" — customers who both buy and sell — which management views as 2–3x more valuable than single-sided participants.