How "real" is the Real Real business model?

Resale (second hand, simply speaking) is a darling of today's retail. Companies are popping up, supported by millions in investments, but I want to ask people in my network who actually work in retail, where is the margin coming from? None of those companies have made a profit at this point. And I don't see how it's actually possible.

1. Model: to show potential to investors you need to show an increase in selling (both - units and transactions). You buy as cheap as possible so you can sell as cheap as possible to attract new clients with the price. Result: the seller is not happy and not coming back. Plus you make peanuts. This is an eBay model, but eBay is a market place with unreal volume. 

2. Clothes: you need branded clothes to make any profit, no one would buy the second-hand Banana Republic. Very few people don't wear what they buy, but even if the item is new it needs to be put in special care to be in a sellable condition. Otherwise, it became shopworn: snags, moth, faded parts, etc. You never have enough of something you can actually sell for a sizable profit. 

3. Handbags: only branded bags can make something close to a profit. Right now, the value of handbags is hyped. Basically, there is a narrative that Hermes is a better investment than anything else, also, Chanel has been increasing their price for classics without changing the design a few times in the last 5 years. Why clients who have those bags and usually not desperate for cash would sell them?

4. Operation cost: this is very expensive. You are processing one item at a time (hours) and you have to train specialists to identify the authenticity of the garments' highly qualified work =higher paid.

5. Fakes: Technology is currently one of the fastest moving industries worldwide. I m sure that there are companies, not even individuals that are working day and night to perfect their Chanel and Hermes to create new "blockchains" and many other things. If you can hack into the Pentagon database, you can fake a handbag for sure:). I've managed designer businesses for years. Some not very honest people were buying expensive items, switch them with fakes re-attach labels, and return. And the store quite often took back fake sweaters with designer's label on, leather jackets..you name it, it was perfectly done. So, I don't see how you can do that training for so many people, especially when brands you are selling are not supporting you and helping you with this process. 

6. Lawsuits: To paraphrase Kathy Bates in Fried Green Tomatoes: “Face it, ladies, I'm older and I have more insurance.” You are putting yourself in God's hands if you going against Chanel or LV because your financial abilities are... let say ... not matching. There is a big lawsuit ongoing by Chanel versus Real Real and this is just the beginning.

 Because the rise in second hand is obvious, companies are working on taking this business in house. Not because they want to make a profit (there is none in my opinion) but prevent fakes, devaluation of the bran's image, and other similar issues. 

Please, give me some thought on this, I honestly want to know how those companies are planning to make any money.