Richard Kestenbaum, a contributing writer for Forbes.com recently published his views on the future of The Real Real and in a roundabout way, the industry as a whole and it’s honestly, spot on.

Richard, who is no stranger to The RealReal, documented his experience and the issues with the authentication process on The RealReal after he spent $3,600 on a counterfeit Christian Dior book tote which you can read here.

In his latest article, he shares the roadblocks that TRR faces on the road to profitability but the bigger issue for the industry as a whole is the product itself. Below is an excerpt from the article:

“Resale is different. Every item has to be coaxed from consumers’ closets with marketing and advertising. Every item has to be individually shipped to the reseller.

No two resale items are the same. Each product has to be inspected individually and get its own written description. All of this takes people’s time and costs money that traditional retailers don’t have to pay.

And there’s more bad news.

The high price of many resold items like designer handbags motivates fraudsters to make fakes that go into the resale market. Every time a fake handbag gets sold, it’s an incentive for the fraudster to make more products and to get better at making them look real. Authentication costs money.”

He hits the nail on the head and while The RealReals CEO, John Koryl has a clear vision for the the future of the company and plans to become profitable, I’ve said it before and I’ll say it again. Luxury Resale is a completely different beast and is unlike any other industry and for this reason, I’m not planning on purchasing any TRR stock right. Maybe next year.

Click here to read Richard Kestenbaum’s article which you totally should!