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Considering how to sell on StockX? As the resale market flourishes, it’s becoming a lucrative avenue for making money. For small businesses, platforms like StockX offer an incredible opportunity to buy and sell items, capturing a piece of the growing resale pie.
Renowned for selling sneakers, clothing, handbags, and other collectibles, this guide unveils the step-by-step process to selling on StockX, highlighting its advantages and disadvantages.
What is StockX?
StockX is a unique online platform known primarily as a resale marketplace for authentic sneakers, especially those of the rare and collectible variety. It’s a paradise for sneaker aficionados, offering them opportunities to purchase sought-after pairs often below their typical retail price.
Additionally, for budding entrepreneurs or those looking to delve into the resale market, StockX provides a straightforward and user-friendly platform.
While sneakers are its hallmark, the platform isn’t limited to them. It has expanded its offerings to include handbags, streetwear, watches, and other collectibles, providing sellers with a broader audience and buyers with a diversified range of products.
How Does StockX work?
The main thing to remember is that StockX essentially works as a middleman. They verify the authenticity of a product before it is sent to the buyer.
This is good because it saves buyers from seeing fake goods, and it works out for sellers too. Sellers gain access to a great resale market for sneakers based on trust.
Buying and selling on StockX is simple. For sellers, you will create a listing for your product. Similar to auction sites like eBay, you can either list a product for sale or set up an asking price for bidding. Buyers can browse through listings, enter bids or directly purchase sneakers and other collectibles.
Once a product is sold, you’ll ship the product to StockX to complete an authentication process before it’s sent to the buyer.
A Brief History of StockX: A Buying and Selling Platform for Collectibles
StockX’s roots trace back to 2015. The brainchild of Josh Luber, Greg Schwartz, and Chris Kaufman, it began its journey in the e-commerce world.
An interesting tidbit is that before it became StockX, Josh Luber had initiated a project named Campless, a website dedicated to rare sneakers.
This venture caught the attention of Dan Gilbert, a prominent industry figure known for founding Quicken Loans and owning the Cleveland Cavaliers. Gilbert saw the potential in Campless and acquired it, leading to its evolution into what we now recognize as StockX.
Currently, the market value of StockX is around 3.8 billion dollars after its last round of funding.
The Process of Selling on StockX
If you’re considering stepping into the world of StockX as a seller, the process is designed to be seamless. Once you’ve established your account, you’re free to list your products. You have the flexibility to either set a fixed price or employ a bidding system.
Buyers on the platform can then either opt for an instant ‘buy now’ option or place their bids. Another feature, termed ‘Ask,’ lets sellers put forth a price, which buyers can either match or bid against.
One of StockX’s standout features is its stringent authentication process. When an item gets sold, sellers are tasked with shipping it to StockX within a designated period, usually 2 business days. StockX’s team then verifies the product’s authenticity.
Once cleared, StockX manages the final leg of the journey, shipping the item to the buyer and ensuring the seller’s payment is processed.
This structured approach underscores StockX’s commitment to maintaining its platform’s integrity and trustworthiness.
Making an Account
When setting up an account, you have four options for registration:
- Traditional email sign up
- Facebook account sign up
- Google account sign up
- Apple ID sign up
You will need to add basic information, location, and a payment method. You will need to verify your email address in order to get started.
Listing a Product
You’ll need to know the make and model of your sneakers or other products to list it.
How to list a product on StockX
- Use the search bar on top of your screen to enter the make and model of the sneaker.
- Select your sneaker from the options that appear and enter the size you’re selling.
- You can then choose whether to set it as a direct buy or for bidding.
When it comes to setting the asking price, it’s crucial to be competitive. There is an option to look at all bids and all asks and that data will give you a sense of how to price.
The Bidding Process
The bidding process on StockX can be likened to an auction system. Interested buyers can place bids on items they desire. This essentially means they’re stating the highest price they’re willing to pay for that item. Sellers have the choice to manually accept any bid they find satisfactory.
However, a unique aspect of StockX is its automated system. If a buyer’s bid coincides with a seller’s ask price, the platform will automatically initiate a sale.
For example, if you have a sneaker listed at $140 and there’s a concurrent bid for the same amount, the platform recognizes this match and instantly completes the sale.
StockX Seller Fees
Engaging in business on StockX comes with associated fees. For novice sellers making their first transactions, there’s a 9.5% fee. However, StockX provides an incentive for consistent sellers; the more you sell, the more the fee percentage decreases.
This tiered system rewards frequent sellers with reduced costs, encouraging more sales on the platform.
Shipping the Items for Authentication
StockX is meticulous about ensuring the authenticity of every product sold on its platform. While the responsibility for the shipping rate rests on the buyer, sellers must send the purchased items to StockX for a thorough authentication process.
After a successful sale, StockX provides sellers with a UPS shipping label. Sellers should pack their items securely, including the invoice inside the package, and affix the provided label before shipping.
Once at StockX, experts will verify the authenticity of the item, after which StockX takes over the responsibility of delivering the product to the buyer.
How does Payment Work on StockX?
The payment mechanism on StockX is streamlined for efficiency. Once sellers ship their items for authentication and the items are verified, payments are triggered.
Sellers have the flexibility to choose their preferred payment method, be it through PayPal, electronic ACH transfers to their bank accounts, Venmo, or even direct debit. However, it’s paramount that sellers ensure the quality and authenticity of their items.
If StockX’s team finds discrepancies in the item’s condition, deems it counterfeit, notes any deviations from the described product, or if the seller misses the shipping deadline, the payment is withheld.
Moreover, the seller is slapped with a penalty, either a flat $15 or 15% of the transaction value, to ensure the platform’s integrity.
Advantages of Selling on StockX
Selling can be pretty easy once you get a hang of the bid and ask system and there is a reason why it’s been so popular with buyers and sellers.
- Authentication: Knowing the item is real and getting the stamp of approval is a big advantage for buyers and sellers. Authentication takes place any time an item is bought or sold on StockX. It gives buyers and sellers more confidence with what they’re buying.
- Anonymous Listing and Bidding: With anonymous listing and bidding, it’s a fair market. There’s no bribing, competition, or asking to lower prices. You can protect your privacy and buy and sell as needed, rather than having that information publicly displayed.
- Quick Product Info and Listing: Listing is easy, and you don’t need to do lots of research. Information about sneakers is populated within the platform, saving you time. No need to take photos or write descriptions, just list your sneakers and wait for bids.
- No Chargebacks: Because of the authentication process, you don’t need to worry about refunds or chargebacks. Once the is shipped to StockX, they take care of everything from there. You won’t have to deal with a lot of admin, which is nice.
Disadvantages of Selling on StockX
- High Seller Fees: Compared to other platforms, StockX does charge a high seller fee. This can be costly for small businesses, especially when you’re just starting out as a reseller. While the fees do lower as you sell more, it is something to consider.
- Low Bids: Low bids can lower the market value of the shoe and lead to smaller profit margins.
- Shipping Fees: Because StockX uses different providers, the shipping fees can be higher than other platforms and may discourage buyers.
Alternatives to StockX
While StockX is definitely innovative, it’s definitely not the only marketplace for buying and selling, you can also use a local selling app. There are plenty of other options out there that you can explore.
- eBay: Possibly the most popular of all, you can either sell at a fixed price or open up products for bidding.
- GOAT.com: An online portal for used and new sneakers
- Poshmark: You can sell shoes, clothes, handbags, and watches. Users can either buy at a fixed price or make an offer and bargain.
- ThredUp: A thrift store/consignment platform for buying and selling. Ship your products to them and they take care of selling.
- Depop: List items on your profile and users can buy directly or message you to negotiate pricing.
- Grailed: A marketplace for sneakers and clothing
- Sole Exchange: A marketplace only for sneakers
- Sole Supremacy: Another marketplace only for sneakers
- Stadium Goods: A marketplace for sneakers, apparel, and accessories
- Kixify: A marketplace for used and new sneakers.
Each of these platforms has different processes in place and product offerings. Some focus only on sneakers, whereas other platforms feature clothes more heavily. Moreover, not many have the balance of sneakers and other items the way StockX does.
Many do not offer similar authentication services, which is also a good time to find out resale rights. The buyer does not have confidence in whether they will receive a fake or real product.
For sellers, there will be less trust involved compared to buying on StockX, which could lead to lower bids if on another platform.
Choosing the right platform for selling your sneakers and collectibles is crucial. While StockX offers a range of features, how does it stack up against its competitors? Let’s compare StockX with other popular reselling platforms in the table below:
| Products Available | Authentication Service | Selling Features | Resale Confidence | ||
|---|---|---|---|---|---|
| StockX | Sneakers, Apparel, Accessories | ✔ | Fixed Price & Bidding | ✔ | |
| eBay | Sneakers, Apparel, Accessories | ✘ | Fixed Price & Bidding | ✘ | |
| GOAT.com | Sneakers | ✔ | Fixed Price & Bidding | ✔ | |
| Poshmark | Sneakers, Apparel, Accessories | ✘ | Fixed Price & Bidding | ✘ | |
| ThredUp | Sneakers, Apparel, Accessories | ✘ | Fixed Price & Bidding | ✘ | |
| Depop | Sneakers, Apparel, Accessories | ✘ | Fixed Price & Bidding | ✘ | |
| Grailed | Sneakers, Apparel | ✘ | Fixed Price & Bidding | ✘ | |
| Stadium Goods | Sneakers, Apparel, Accessories | ✔ | Fixed Price & Bidding | ✔ |
StockX FAQ
Now that you know what is sold on StockX and what it’s is all about, you probably have a lot of questions about the site, the platform itself, and how to get started.
Is StockX legit?
Absolutely, StockX is a legitimate platform. It has established itself as a leading marketplace for buying and selling sneakers, as well as other collectibles. Its large user base and the authentication process for products ensure that users are engaging in genuine transactions.
Is it better to bid or buy on StockX?
This depends on the strategy of the seller. Opting for a ‘buy now’ price ensures a quick sale at a known price. On the other hand, bidding might garner a higher price, but it might also mean a longer wait, or potentially a lower offer. It’s about weighing immediate gains versus potential higher returns.
Who is Josh Luber?
Josh Luber is best known as the co-founder of StockX. Before StockX, he founded Campless, a sneaker data analytics company. Campless caught the attention of Dan Gilbert, who later acquired it, leading to the evolution and creation of StockX.
Who is Scott Cutler?
Scott Cutler is the CEO of StockX. With a rich history in the tech and finance industries, Cutler brings a wealth of experience to his role, ensuring the platform’s continued growth and success.
How does payment work on StockX?
After the sold product is received and authenticated by StockX, sellers are compensated. They can choose among several payment methods: PayPal, Venmo, debit, or ACH bank transfer. Remember, there’s a standard 9.5% transaction fee, which decreases as the seller sells more items over time. All shipping fees are borne by the buyer.
How much does it cost to sell on StockX?
Listing products on StockX is free. However, when a sale occurs, there’s a transaction fee involved. Initially, this fee stands at 9.5%, but it can reduce with more sales made by the seller on the platform.
Is selling on StockX worth it?
For those deeply involved in the sneaker and apparel world, StockX can be a lucrative platform. Given its robust authentication process, buyers trust the products sold, making it an attractive place for sellers. While there’s a fee involved, the potential for profit, especially in the long run, is significant.
Does StockX return fake shoes?
Yes, if shoes sent to StockX for sale are determined to be fake during the authentication process, they are returned to the seller. However, StockX charges a fee for this return, which can be 15% of the sales price or a fixed fee, often around $13.95, depending on the transaction.
How does StockX bidding work?
- List your product, and set it to bidding or buying. You can set listings up to expire after 7, 10, 14, 30, or 60 days and renew as needed.
- If bidding, buyers have the option of submitting a bid for a certain period of time (7, 10, 14, 30 or 60 days). If they have the highest bid within that period, the product is automatically sold or you can manually accept a bid.
- Once the product is sold, you have 2-3 business days to ship your product for authentication after which it will be sent to the buyer.
For those passionate about the world of sneakers, it’s always intriguing to discover the pinnacle of luxury and rarity. Here’s a YouTube video we’ve come across, spotlighting the top three most expensive sneakers ever sold. It’s a captivating watch for any sneaker aficionado. Enjoy!
Image: stockx
