World of Warcraft Item Upgrades
Upgrades to an item are a way to increase the stats of an item. Based on the type of upgrade it can increase an item's Mark Level or Rarity, and also boost other stats.
Each item has a track for upgrading it. Each upgrade increases the cost of the following one by a set amount.
Item Level
The value of an item's basic stats increases as it is upgraded. This is the sum of all its leveled up advantages (attack magic attack, attack defense). Upgrades can be expensive, depending on the person you hire and what you decide to do. This is due to the fact that many perks need to be replaced to allow the item to be upgraded.
Item level is a commonly used measurement of power and can be found on all tooltips of items. It is also used to determine a gating condition when waiting for dungeons, raids and scenarios, and to limit the amount of PvP gear players can wear (since PvP is limited to a lower level). The average item level is listed on the character sheet.
When deciding whether to buy or sell equipment, players can compare the levels of the item. It's a sign of the damage and its quality. The level of the item can be used to compare items when evaluating the inventory of a seller.
On PC, you are able to check the level of the item by pressing ALT or by using the left stick on XB1 or PS4. The item will be displayed with its full description, including ilvl. You can also find it by hovering over an item and typing /itemlevel in chat.
There are a variety of theories on how the item level is calculated. One theory says that the item level is calculated using an equation that determines the worth of an item's stats really are. It takes into consideration that different benefits are valued differently and that gems found in sockets increase the value of the item. This process could result in a calculated amount for the item's level, which is typically close to Blizzard's real item level.
However, this is not the only factor which determines the ilvl of an item, since the level of the area the item is dropped into can change the value of its stats, such as by adding an amount to its haste rating or crit rating. Items dropped in higher-level instances will have a higher value.
Item Stats
The item's stats can make or break an item for players. The game makes use of a lot of them in different ways to encourage players to use multiple weapons, and also to stop one weapon from being "the best." The stats of a base weapon are boosted by the weapon's stat modifications that are in turn increased by the player's skill.
Upgrades to an item may boost its stats. The cost of upgrades is determined by the rarity of the item. An item that is white or grey, for example, will only be upgraded once, while an item that has rare tiers can be upgraded multiple times with higher prices.
Affixes are a different method to alter the stats of an item. These are special stat boosts that can be added to an item by the player and they come in all sizes and shapes. Affixes are used to provide items with extra damage, special abilities (such as revitalizing dead or reducing cooling downs) or to differentiate them by adding a name.
Presently, all affixes are able to be modified by selecting them in the upgrade window and pressing the green button with the arrows that circle. This will cost a specific amount in gold and items. They can also be used as upgrade gauges similar to other rerolling methods.
Players can upgrade an item to a specific stat, or reroll the affixes. The possible stat ranges for an item are based on the item level, but every item is guaranteed to have at least 1 stat within that range, unless it is a unique item or a God roll from a boss in a raid.
This is another aspect that could be altered by introducing an option to upgrade the equipment without rerolling the affixes or choosing which stats to increase. However, as with the base equipment, this would have to be done on a per-item level, and the interface for comparing items will not show all the stats that could be either lost or gained at the same time.
Item Luck
The Luck stat for a player adds up to increase the likelihood of item discoveries and the properties that are spawned from loot drops and the strength of those properties. However, it does not directly affect damage or the ability to upgrade items. It simply gives the player a possibility to obtain better gear in earlier waves and is thus more useful in early game runs than later ones since most players prefer greater weapon scaling and defense over damage gains.
Luck can also boost the chance of upgrading items at the Blacksmith. This is not to be confused with the Blacksmith's overall upgrade probability which increases with each item level and can be further enhanced by using an anti-material, such as a Scroll of Strength or a Jewel of Blessing.
The shields, armor, and weapons have a default Luck value of 40. These items can be improved with golden ingots, or spined leather (depending on the type of material) for a further +40 luck, or to increase the luck of the item to 140.
Moreover there are certain items, such as the Hollow weapon, which is infused with Hollow, can be equipped to boost the damage of any damage-dealing skill by 5%. These items can be purchased at the store or made using the correct ingredients.
Item Failure
Item upgrades are a costly process and not all upgrades will be successful. However, there are some cash shop items which allow players to increase their chance of success or stop themselves from losing an item in the event that the upgrade fails.
When you upgrade an item the rate of success is displayed in the Honing UI. The percentage indicates the probability of successful upgrading an item. This can be increased with Additional Materials or Special Materials. The chance of success can only be increased as much, and the likelihood that the upgrade will fail cannot exceed 100%..

The success of an item can be affected by the Luck of that item. item upgrading has an initial success rate of 25% and every item that has Luck increases that chance by 5%.
Note that item upgrades are rendered above the inventory items, so enchantment glint and other effects may be masked by them. If you wish to disable the upgrade overlays, the config option decoration.renderUpgradeOverlays can be set to False in the Item Upgrader CORE client config.