As the resale market continues to grow, it is proving to be an excellent way to make money. Small businesses can use websites such as Stock...
As the resale market continues to grow, it is proving to be an excellent way to make money. Small businesses can use websites such as StockX for buying and selling, and start to capture some of the resale market. StockX is an excellent place to sell sneakers, clothing, handbags, watches, and other collectibles.
This guide will take you through the process of selling on StockX, including how to set up an account and the benefits and drawbacks of selling on StockX.
What is StockX?
At its core, StockX is a resale market used for authentic sneakers (i.e., collectible sneakers). Buyers can find sneakers at less than the retail price, making it an attractive purchase for them, especially for a serious sneakerhead!
For a small business venture, StockX is an easy platform to enter the market. It also offers other items such as handbags, watches, streetwear, and other collectibles, so there are lots of opportunities to diversify.
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 was founded in 2015 and launched in February 2016. The original founders include Josh Luber, Greg Schwartz, and Chris Kaufman. Its early iteration was a rare sneaker website Campless, founded by Luber. Dan Gilbert, industry giant, founder of Quicken, and owner of Cleveland Cavaliers acquired Campless and it evolved into StockX.
Although originally designed as a platform for sneakerhands, StockX has grown quickly. The company has moved into other collectibles and designer items. Currently, the market value of StockX is around 3.8 billion dollars after its last round of funding.
The Process of Selling on StockX
Selling collectibles such as sneakers, handbags, and watches on StockX is easy. As a seller, you will first need to set up an account and post your listings. A reseller can either post goods with a fixed price or set it up for bidding.
A user can either click ‘buy now’ and submit a bid. Or they can place an ‘Ask.’ This means that you set a price, and users can choose to bid on it. Once the item is sold, you will have to ship the item to StockX for authentication within 2 business days. Once it’s authenticated, StockX will ship the item and release funds.
Making an Account
When setting up an account, you have four options for registration:
1) Traditional email sign up
2) Facebook account sign up
3) Google account sign up
4) 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 is like making an offer on what you intend to buy. Buyers can submit a bid on an item. You can manually accept bids, or if the buyer has the highest bid and it matches up with a seller’s ask price, it’s an automatic transaction. So if you list a certain sneaker at $140, and someone has placed a $140 bid on it, you have an automatic sale.
Stockx Seller Fees
Sellers are charged a fee for selling on the platform. Initial transactions are charged at 9.5%. However, as you sell more, the fee lowers.
Shipping the Items for Authentication
Shipping rates are paid by the buyer and sold items will first have to be sent for authentication. After purchase, you will receive a UPS shipping label. Pack up your item as safely as possible, place the invoice inside and affix the label. StockX handles authenticating the item and getting the product to your buyer.
How does Payment Work on StockX?
Sellers receive payment once the items have been shipped for authentication. You can choose to receive payment through PayPal, electronic ACH transfer to a bank account, Venmo, or debit. If your item does not meet the condition guidelines, is fake, not as described, or not shipped in time, you will not get paid. You will be charged a $15 penalty or a fee equal to 15% of the transaction.
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.
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?
Yes, StockX is legit. It’s widely considered one of the most popular options for buying and selling sneakers and other products and has a huge user base.
Is it better to bid or buy on StockX?
That’s really the seller’s choice. With buying a product, you’re guaranteed a fixed price even if it is lower than you would like. With bidding, you have the opportunity to potentially get more but it may take longer, or the bid might be lower than what you would like.
Who is Josh Luber?
Josh Luber is the founder of StockX. He previously started the site Campless, which was acquired by investor Dan Gilbert and eventually evolved to become StockX.
Who is Scott Cutler?
Cutler is currently the chief executive officer of StockX
How does payment work on StockX?
Once a product is sold and shipped to StockX, sellers receive their payment via four methods including Paypal, Venmo, debit and. However, a 9.5% transaction fee is deducted, which lowers as you sell more. Shipping costs are paid for by the buyer.
How much does it cost to sell on StockX?
There is no cost to list products but a transaction fee of 9.5% will be charged if the product sells.
Is selling on StockX worth it?
If you’re serious about selling sneakers and apparel, and you know you have products that can appeal to sneakerheads and collectors, go fo it. Buyers have complete trust thanks to the authentication process, and it has good profit potential. While the seller fees may detract, there is definitely earning potential long-term.
Does StockX return fake shoes?
If you know unknowingly sell fake shoes and it is discovered in authentication, StockX charges 15% of the sales price or $13.95 for shipping them back, whichever costs more.
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.
Image: stockx
This article, "How to Sell on StockX" was first published on Small Business Trends
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