Whether you’ve been a reseller for a while or are new to the game, you’ve probably heard of StockX. Maybe you’ve even seen their advertisements that were all over YouTube. But what exactly is StockX and are they good for sneaker resale?
StockX refers to themselves as “the world’s first stock market for things.” Basically, they are an online platform acting as a “middleman” between resellers and sneakerheads. StockX has expanded to also feature other products like streetwear, watches, and handbags.
The History of StockX
StockX is a joint venture between former IBM consultant Josh Luber and Billionaire Dan Gilbert, founder of Quicken Loans and Cleveland Cavaliers owner. Luber had created Campless, a website dedicated to sneaker resale pricing using algorithms from eBay sales.
Gilbert was thinking about a stock exchange for sneakers after watching his son buying and selling shoes online. StockX was created, Campless was absorbed into the company, and Josh Luber became StockX’s CEO.
How StockX Works
StockX provides an easy platform for resellers and customers to use. For buyers, when you find a shoe model you like, you can make an offer that any reseller can accept or you can purchase immediately at the lowest asking price listed. After purchase, the seller ships the shoes to StockX where they are authenticated to ensure they are not fakes. After the shoes are verified, they are shipped to the customer.
For resellers, you can list sneakers for sale on StockX or you can sell them immediately for the highest bid. After a sale, you ship the shoes to StockX to be authenticated. Once the sneakers are verified, funds are released to you for the sale.
Another cool feature for doing research is checking out existing portfolios of sellers who have shoe collections in the six figures, and creating your own to help follow the sneaker market closely.
Why Resellers like selling Sneakers on StockX
Whether you like StockX or not, their platform is reseller-friendly in many ways. That is partly why StockX handles $2 million worth of transactions every day. What makes StockX a great platform for reselling sneakers?
Sneaker Info already on StockX
Because all shoes sold on StockX are deadstock, there is no need for resellers to upload photos or shoe descriptions. StockX has all of the shoe information on their site already, including shoe model, colorway, release date, and retail prices. Having to take photos of all your sneakers and come up with descriptions is a time-consuming process for resellers. Not having to do all that work makes StockX easier to use than other selling platforms.
StockX’s Authentication Process
What might be the best feature of StockX, for sellers and buyers, is their authentication process. Many buyers are nervous buying shoes online, not knowing if they are getting the real deal or a knockoff. Resellers know that their reputation lies in providing a quality product. Selling one fake pair of sneakers could ruin your whole resale business. Once a sale is made on StockX, shoes are shipped directly to them to be verified by dedicated staff. StockX staff looks at every little detail to verify shoes are 100% real. Once that is determined, shoes are given a green verification tag and shipped to the customer.
Anonymity of StockX
One feature that separates StockX from its competitors is that both buyers and sellers remain anonymous during the process, similar to the stock market. It’s all about the sneakers. Sites like eBay have thousands of sneakers sales listed, but you have no idea who you are dealing with or if the shoes are legit. Because StockX verifies every pair of sneakers, there’s no risk for customers.
Being anonymous makes selling sneakers easy for newer resellers. On eBay, customers often look at the number of reviews a seller has before buying anything. As a new reseller you haven’t built up those reviews yet so it’s hard to compete. That’s not the case with StockX, where every seller is on the same level.
Why Resellers don’t like selling Sneakers on StockX
For as many good features as StockX offers sellers through its platform, there are also some aspects that sellers don’t like. Because of this, many resellers only use StockX for its analytical data, choosing to sell on other platforms instead.
StockX encourages a free market, meaning customers determine the value of sneakers. Many resellers don’t like the fact that buyers can place bids lower than the average market value, which could potentially lower the value of a shoe on the site.
Every online resale platform charges sellers fees for using their site. That isn’t surprising because that’s how they make money. However, StockX’s fees are higher than most. StockX charges seller’s a 9.5% sellers fee, although this can go down as you sell more sneakers. On top of that StockX has increased shipping fees over the years and also has a payment processing fee too. More fees mean less money in your pocket after a sale.
New users come onto StockX and are often initially confused because instead of just seeing one price as you’d see in just about every other store, there are 3 different prices that sometimes vary widely in value.
Here are the 3 different prices that you’ll see above a shoe on StockX, and what each of them means.
This is the last sale that happened for the pair of shoes you’re looking at. Next to this number, you’ll see if the price has gone up or down compared to the previous sale.
Buy (aka Bid)
This number shows you a number that’s often below market value. It’s the price that a prospective buyer put out there for sellers to let them know that they’ll buy shoes immediately at this price.
After putting out a bid or Buy request, the buyer is bound to fulfill their promise to immediately purchase the shoe at the price.
StockX shows the lowest price on the market and its size.
Sell (aka Ask)
Often slightly above or at market value, the Sell or Ask is how much the seller is hoping to get for their kicks. They’re bound by this number to sell immediately at this price point.
StockX will show the highest number out there along with the size that goes along with it.
Through the good and the bad, StockX is a great option for resellers looking to flip shoes for profit. With that said, these guys are absolutely not the only way to sell shoes. There are many other resale online platforms that are excellent options as well. What alternatives do you have as a reseller? Here are some of StockX’s biggest competitors as well as other resale websites and Apps you can use:
- Stadium Goods (recently purchased by FarFetch)
- Facebook Marketplace
For the last several years, StockX has provided a great platform to not only learn how to sell sneakers, but also to learn about sneakers themselves and gain insight into the resale market and shoe values. It’s not a perfect platform, but it worth checking out if you are looking to make money flipping sneakers.
Regardless of what platforms you choose to use for reselling sneakers, take time to invest in learning everything you can about sneakers and sneaker reselling. One of the best ways to do that is by purchasing the Six Figure Sneakerhead Hypemaster Playbook. In our playbook, you will not only learn the history of sneakers, but also the ins & outs of every aspect of sneaker reselling. If you are interested in making extra money this year or starting a new resale business, you owe it to yourself to invest in your future.