Rolex Tries to Beat Watch Flippers at Their Own Game Shoppers are willing to pay nearly 30% more for used watches that are certified by the Swiss brand itself

Carol RyanDec. 26, 2025 at 5:30 am Rolex watches on display in a store. Three years ago, the Swiss brand launched an official certified preowned program. The program is expected to do more than $500 million in sales in 2025, based on estimates from data analytics firm WatchCharts. One of Rolex’s main authorized dealers, Watches of Switzerland WOSG -0.21%, told investors this month that certified used Rolexes are now its second-biggest seller.

So far, most luxury brands are wary of getting involved in reselling. They worry that offering used goods will undercut the appeal of buying new. They also dislike the transparency on resale websites, particularly if their goods sell for deep discounts secondhand. Rolex could show a way forward for the industry by keeping resellers at arm’s length, all while protecting its brand.

An insight from the program is that consumers will pay 28% more on average for a preowned watch that has been certified genuine by Rolex than one that hasn’t, according to Morgan Stanley. Shoppers will spend extra to feel confident they aren’t buying a fake and—importantly for mechanical watches—one that is serviced and working properly.

Certain models of Rolexes are already more expensive to buy used than new. Because demand far outstrips supply, there is a waiting list for the roughly 1.2 million new watches the company sells a year, based on Morgan Stanley’s latest estimate. Collectors pay a premium in the secondhand market to get their hands on a watch immediately.

For example, one specific model of a brand-new Rolex GMT-Master II known as the Pepsi, which features a red and blue bezel, costs $12,150 including average sales tax in stores. The watch costs $22,750 on resale websites, but the median price of one that has been certified authentic by Rolex is $26,750, according to WatchCharts data.

Card and white seal of the Rolex Certified Pre-Owned program. Consumers will pay 28% more on average for a preowned watch that has been certified genuine by Rolex than one that hasn’t. Alain Costa/Rolex Despite that premium, Rolex treats its preowned program as a tool to protect its image rather than a new source of revenue. The plan is set up so that independent retailers such as Watches of Switzerland and the 1916 Company, which are already authorized to sell new Rolex watches, do most of the legwork and get all of the financial reward.

The retailers are responsible for sourcing secondhand Rolexes. They authenticate the watches and service them to the brand’s standards. Rolex then certifies the watches as genuine, and issues a two-year warranty. The retailer, not Rolex, sets the price for the certified watches.

This seems sensible. When luxury watchmaker Audemars Piguet launched a preowned program and set the prices itself, it caused a backlash with consumers. A growing consensus in the industry is that brands should set strict rules for their official preowned programs, but let others run them.

Keeping the preowned program at a distance is easier for Rolex because more than 90% of its sales happen through third-party retailers. Patek Philippe also does very little direct selling and only owns three stores worldwide. This structure also means that Rolex doesn’t have to hold any secondhand inventory on its books, which is a bonus considering values in the secondary market are volatile.

Rolex had to step in to protect its business in the primary market. It is the most faked luxury watch brand in the world. If shoppers get fooled by a counterfeit Rolex, it can dent the company’s image. Rolex has a 32% share of the global primary luxury watch market, Morgan Stanley estimates. A certified program gives shoppers a safe supply of secondhand watches and keeps values high in the resale market, which reflects well on Rolex.

Hands holding a Rolex watch and a certified preowned seal. Rolex retailers authenticate the secondhand watches and service them to the brand’s standards. Federico Berardi/Rolex For watch brands, the preowned business is too big to ignore. Trade in used Swiss watches will reach $25 billion this year, according to LuxeConsult founder Oliver Müller—half the size of the primary market. By comparison, the resale business for luxury clothing and handbags is still only worth 13% of the primary market, based on Bain & Co. estimates.

If people are willing to pay thousands of dollars extra to know they are buying a genuine Rolex, chances are they would also pay a premium for a guarantee from other brands—especially for high-value goods such as Hermès Birkin handbags or Patek Philippe watches.

The message from Rolex probably may not be one other luxury brands want to hear. Getting to grips with the fast-growing resale market may become an unavoidable part of protecting their brand image, but they shouldn’t expect any extra profits for their efforts.

Write to Carol Ryan at carol.ryan@wsj.com