What to look out for when buying and selling resale designer bags

Buyer's tip #1: Set realistic expectations to avoid buyer's regret

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It can be daunting being a first-time buyer. How do you know whether you're getting the best value for your hard-earned money? And how do you avoid getting the short end of the stick when it comes to dealing with resellers?

Jenny Chua, the Sales Lead at LUX.R, notes that importantly, buyers should set realistic expectations when considering the condition of resale luxury items. "While they may not be in a pristine, box-fresh condition like items just purchased from the boutique, they can still offer significant savings," Jenny says. "You can expect some signs of use, but if you're not overly particular, the discounted price can more than compensate for this."

 

Buyer's tip #2: Inspect the details

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Jenny also advises shoppers to bear in mind to check on what your purchase comes with. "Not all resale luxury items come with a complete set of accessories, so buyers should carefully review what is included with the item before making a purchase," she tells us.

Her tip? If the item doesn't come with a full set but is priced rather steeply, then use the lack of a complete set as a bargaining point to negotiate for a lower price.

Importantly, Jenny recommends that each buyer spend some time considering their purpose of buying an item, as this may change what are dealbreakers for you.

"If it's solely for personal enjoyment and collection, the exclusion of accessories like authenticity cards might not matter as much," Jenny says. "However, prices for resale luxury items can vary significantly based on whether they come with a full set of accessories, including the authenticity card and receipts. Therefore, if you're planning to resell the item in the future, this aspect may be more crucial to consider."

Buyer's tip #3: Don't buy in haste

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We all know that familiar feeling – you see something online and you immediately snap it up. Plus, with online shopping being so readily available 24/7, it's tempting to just check out something online, and then hit the "checkout" button without having ever met the product in person.

"The most common mistake is to buy something online completely sight unseen," Florence Low, founder of LuxLexicon, shares in an email conversation with us. "Given the higher price points of luxury products, it is wise to view the product in person before making payment, or at least have the seller send you detailed images of the product before paying."

Florence advises first-timers to also get acquainted with certain terminology, because it helps keep your transaction clearer to you. "Terms like 'BNIB' – which means 'brand new in box' or 'NWT' that symbolises 'new with tag' are commonly used by resellers. When they say 'full set', they refer to a product being sold with the full retail trappings including box and receipt," she mentions. "Without knowing these terms, you may not know what you're buying, or why the price is tagged a certain way."

Jenny makes a similar point as well, saying that "resellers generally use abbreviations such as GHW (Gold Hardware), SHW (Silver Hardware), RGHW (Rose Gold Hardware), and Palladium Hardware (PHW)", so knowing your terminology gives you a leg up when purchasing.

Buyer's tip #4: Do your homework

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Did you know that the price can be affected by the date that the item was manufactured in?

Jenny pointed out to us that certain ultra-luxury brands often use "date codes or date stamps to indicate the manufacturing year of an item. Typically, newer models command higher prices due to their relevance and condition. Conversely, older date stamps may suggest more wear and tear, although well-maintained vintage pieces can be exceptions to this rule."

Her lesson here? Ask about the product down to when it was made, so you get a better sensing of whether it's worth its price tag.

Jenny also notes that, while this isn't isolated to luxury products, one common mistake people make is buying items due to peer pressure. "You end up with a purchase that doesn't resonate with your personal style or fit your needs. Instead of blindly chasing trends, we always advise our customers to invest in pieces they’ll genuinely love and wear for years to come."

Buyer's tip #5: It's an investment, if you want it to be.

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Speaking of commanding higher resale prices, when we ask Florence if she views resale products as an investment, she immediately tells us that it is.

"Yes, absolutely," she exclaims. "Given the price hikes that certain French luxury houses have implemented in recent years, the price of the classic bags have doubled over the pandemic. For example, if you are able to score hard-to-buy bags in Europe, you canl stand to gain up to $20,000 from the sale of this bag on the resale market."

Seller's tip #1: Different resellers appraise items differently

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This shouldn't be a surprise, but depending on the reseller you're looking to sell your item to, they have a different checklist.

Certain things remain consistent – such as the condition of the bag. Jenny says her team doesn't stop at just looking for scratches of scuff marks, but even "odors such as tobacco, perfume, mothballs, and so on will be noted as well." Jenny's team also notes down authentication, in which they employ a variety of techniques to suss out the genuine from the fakes.

For Florence, her LuxLexicon team looks at rarity and demand on top of condition. If your item is hot on the market, or an incredibly unique find, it may help you net a higher selling price. Similarly, changes in trends can adversely affect the resale price of your item.

Seller's tip #2: Resale is a long game

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When we say long game, it's not just because certain products take a longer time to move off the shelf. Your journey into resale starts long before you are even considering it – it begins upon bringing the product home from the boutique, because it hinges very much on how you care for it.

"Always take care of your prized luxury items," Florence says when we ask her for her top tip to sellers. "Something in pristine condition will always do better. It will sell faster and at a better price, as compared to a product that looks used and abused. Leather handbags must be stored in ideal lighting and humidity conditions. Excessive heat and light will cause the colour of leather handbags to oxidize, while excessive humidity will encourage the growth of mold on leather handbags."

This is something Jenny also echoes, saying that sellers should "sell items as soon as you realize you no longer use or need them. The longer you hold onto them, the more their value depreciates, especially in humid climates where items are prone to mold and deterioration."

Seller's tip #3: Decide if you want to resale or consign

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Both Florence and Jenny highlight that there are differences between reselling and consigning, and each has its own list of pros and cons.

For Florence at LuxLexicon, she says that her business offers two types of payments once your item is accepted by her team. "A cash offer appeals to sellers who want a fuss-free sale immediately, but we also have a consignment offer which fetches a higher value for the seller. To sell on consignment essentially means an item will be placed in our care for sale, and seller will only be paid after a sale is made."

Jenny at LUX.R shares that with her team, they offer two payment modes too.

"With direct reselling, you can receive cash immediately upon sale. However, in exchange for the speed and convenience, the selling price may be relatively lower as compared to selling on consignment," Jenny notes. "Consignment involves entrusting your item to us to sell on your behalf. You receive payment only after the item is sold, which can vary depending on market demand. While consignment may yield a higher selling price closer to your desired amount, this needs to be weighed against the waiting time for the sale to occur and the commission fees charged by the consignment shop, which will bring down your final profit. While less common, there’s also the risk of damage to your items (e.g. dents, scratches) while in the consignment shop's care."

What bags are worth investing in?

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Regardless of whether you're buying to make a profit, or you're buying to grow your collection, knowing which bags retain a longer-term investment can help you narrow down your options in your decision-making process.

Jenny's recommendation starts with the Hermes trio known as the "BKC" – Birkin, Kelly, Constance. "Try to stick with safer colours like Noir or Etoupe, and choose classic leathers like Epsom or Togo". She also highlighted that Goyard's resale prices have increased, but added on that she "cannot be sure if the trend will die down going forward". For Louis Vuitton fans, classic models like the Speedy or Neverfull "can retain value slightly better, and make for smarter investments," she says.

Florence also recommends investing in Hermes bags – her choice picks are the Birkin, the Kelly Pochette or the Constance. That being said, Florence also notes that Chanel Flap bags command plenty of buyer interest, and would make worthy bag investments.