Resale companies are facing a tough time attracting sellers due to the logistical obstacle of getting pre-owned clothes from sellers’ homes to the processing facilities. Data provided by resale platform The RealReal reveals, in the first two weeks of April, the platform saw 10-times the number of brands applying to join its B2B program, compared to an average two-week period before the coronavirus outbreak.

Majority of new brands interested in selling are looking for alternative ways to sell product at a time when their stores are closed. For business sellers, The RealReal, sells products at around 80 per cent of full retail price, on average. RealReal’s cut is 50-80 per cent of the sale, depending on the value of the item.

Most of the brands approached The RealReal looking to sell, while a few were approached by The RealReal based on high demand on the site. Some brands, like Stella McCartney and Burberry, have made their business with The RealReal public, while most have privately sold to the retailer. There is a longstanding point of contention between resale platforms and luxury brands that are vehemently opposed to resale. For example, Chanel filed a lawsuit against The RealReal for trademark infringement in 2018.

For resellers, the benefit of working directly with brands is obtaining large amounts of product from a business, where it’s already bundled and packaged in a warehouse.

Currently, that’s easier than getting products from consumers’ homes. The RealReal takes on the cost of expedited shipping for brand partners. Like all sellers, brands get access to a personal dashboard to track their product and are paid upon the sale of the product. Between Mar. 1 and Apr. 14, The RealReal saw a 30 per cent increase year-over-year in supply of product from brands.