StockX

StockX is an online marketplace and clothing reseller, primarily of sneakers. The Detroit-based company was founded by Dan Gilbert, Josh Luber, Greg Schwartz, and Chris Kaufman in 2015–2016. StockX has more than 800 employees[1] in Downtown Detroit. StockX currently has international offices in London, UK, in Eindhoven, the Netherlands, and has authentication facilities in Detroit's Corktown neighborhood, Moonachie, NJ, and Tempe, AZ. Scott Cutler and Schwartz serve as chief executive officer and chief operating officer, respectively, and Deena Bahri became the company's first chief marketing officer in 2019.[2][3][4][5]

StockX
IndustryE-commerce
PredecessorCampless
Founders
  • Josh Luber
  • Greg Schwartz
  • Chris Kaufman


Headquarters
Detroit, Michigan
,
United States
Key people
Number of employees
800 (2019)
Websitestockx.com

History and operations

The startup company was founded by Dan Gilbert, Josh Luber,[6] Greg Schwartz, and Chris Kaufman starting in 2015,[7] and launched in February 2016.[8][9] Luber had previously founded StockX's predecessor website about rare sneakers called Capless (established during 2012–2013),[10][11] and Schwartz holds the chief operating officer position.[12] After Gilbert acquired Campless from Luber, Luber relocated from Philadelphia to work from Gilbert's One Campus Martius building in Downtown Detroit.[7] StockX opened its first international headquarters in London in October 2018.[13] Scott Cutler was appointed chief executive officer in June 2019.[14]

The company has more than 800 employees, as of August 2019.[14][15] StockX is among the fastest-growing startups in Detroit and Michigan, as of late 2018.[16][17]

In addition to the One Campus Martius office, StockX has an authentication facility in Detroit's Corktown neighborhood.[16][17] Prior to the authentication center's relocation in June 2018, the company had a team of 15 employees authenticating thousands of pairs of shoes daily.[7] The larger Corktown facility increased the number of authentications.[9] StockX opened a second authentication center in Tempe, Arizona, in late 2018,[7] followed by two more in Moonachie, New Jersey, and West London.[18][19] In 2019, the company opened a fifth authentication center in Eindhoven, Netherlands.[20][21] StockX maintains a catalog of all fake items received.[22]

The company's first "StockX Day" event in Detroit, which invited resellers, platform users, and industry influencers to meet employees and see operations, was held in October 2017 and attended by approximately 200 people.[7] 150 buyers and sellers were selected from 3,000–5,000 applicants to attend the second "StockX Day" in April 2018.[8][23] In May 2019, the company held a third "StockX Day" event for an audience of 300 and announced the opening of its first permanent location in New York City along with several major product updates.[24]

StockX has collaborated with numerous celebrities and companies on charitable initiatives. In 2017, Eminem collaborated with the company to raffle off his Air Jordan sneakers designed in collaboration with Carhartt to raise funds for the Greater Houston Community Foundation Hurricane Harvey Relief Fund and Team Rubicon to support relief efforts in Texas and Florida following Hurricane Harvey.[8][25] Nike Inc.'s debut of LeBron James' first retro sneaker via StockX marked the first time the brand bypassed retail and went directly to the secondary market.[8] In 2018, StockX and Wu-Tang Clan collaborated on the Charity Rules Everyone Around Me (C.R.E.A.M.) campaign; proceeds from nine exclusive products benefitted the Wu-Tang Foundation to support children in underserved communities.[26][27]

StockX suffered a data breach in mid-2019.[28] In September, the company and Bleacher Report reached a multiyear advertising agreement,[29] and Deena Bahri became StockX's first chief marketing officer.[30]

In September 2020, StockX co-founder Josh Luber left the company.[31]

Business model

StockX serves as an online marketplace, facilitating auctions between sellers and buyers,[13] then collecting transaction and payment fees. Sellers send purchased items to StockX facilities for inspection and verification, then authenticated products are shipped to buyers.[14] StockX features a "stock market-like" variable pricing framework and discloses price histories for specific items. StockX is most known for sneakers and streetwear but also carries other clothing and accessories such as handbags and watches.[6][14] StockX surpassed eBay in total sneaker transactions in 2017.[17] Counterfeit items are returned to sellers, and buyers are refunded.[32]

StockX charges a 3 percent processing fee for all resellers, and a 9.5 percent transaction fee for new users, which decreases with experience.[7] Prior to the company's expansion into Europe, StockX only advertised in the United States and accepted U.S dollars.[16] Fifteen percent of the company's buyers were international, as of September 2018.[16]

In January 2019, StockX partnered with celebrity jeweler and influencer Ben Baller to sell 800 pairs of black and red slides directly to the public, marking the company's first "initial product offering" ("I.P.O.").[14][33] The shoes were printed with the phrase "Ben Baller did the chain", a lyric from ASAP Ferg's song "Plain Jane" (2017).[10]

Funding

StockX has received financial backing from Gilbert, investment companies Battery Ventures and GV,[16] as well as Scooter Braun, Jon Buscemi, Eminem, Joe Haden,[11] Ted Leonsis,[18] and Mark Wahlberg.[34][35] The company raised $6 million in February 2017.[9] StockX received $44 million in a second venture round in September 2018.[16][36] In addition to Battery and GV, investors included Steve Aoki, Marc Benioff, Don C, and Karlie Kloss.[16][34] The investment helped fund StockX's international expansion.[18]

In June 2019, StockX raised $110 million and was valued at $1 billion in another venture round. Investors included General Atlantic, GGV Capital, and Yuri Milner's firm DST Global, in addition to Battery Ventures and GV.[14][37]

References
  1. Clifford, Tyler (2019-10-21). "StockX's new CEO tells Jim Cramer going public is 'certainly our objective as a company'". CNBC. Retrieved 2020-08-02.
  2. Hyman, Dan. "A Nasdaq for Sneakerheads". The New York Times. Retrieved 28 June 2019.
  3. Griffith, Erin. "Buy Low-Tops, Sell High-Tops: StockX Sneaker Exchange Is Worth $1.8 Billion". The New York Times. Retrieved 28 June 2019.
  4. Wade, Reggie. "StockX is now valued at over $1 billion". Yahoo Finance. Retrieved 28 June 2019.
  5. Reindi, JC. "Detroit startup StockX now worth $1B: How it got rare status". Detroit Free Press. Retrieved 28 June 2019.
  6. Gallagher, Jacob (November 26, 2018). "This Website Is the Stock Market for Nikes and Rolexes". The Wall Street Journal. Retrieved April 23, 2019.
  7. Seppala, Timothy J. (February 16, 2018). "Why sneakerheads are leaving eBay for Detroit startup StockX". Engadget. Retrieved April 23, 2019.
  8. Graham, Adam (May 24, 2018). "Detroit-based online sneaker market's stock soaring". The Detroit News. Retrieved April 24, 2019.
  9. Livengood, Chad (September 13, 2018). "Detroit's StockX, a company co-founded by Dan Gilbert, raises $44 million from new investors with boost from Silicon Valley". Crain's Detroit Business. Crain Communications. Retrieved April 24, 2019.
  10. White, Ronald D. (April 19, 2019). "Those Nikes — buy, sell or hold? Sneakers are now assets trading like stocks". Los Angeles Times. Retrieved April 24, 2019.
  11. Reindl, JC (July 9, 2018). "Fast-growing Detroit startup StockX sniffs out fake sneakers". Detroit Free Press. Retrieved April 24, 2019.
  12. Reindl, JC (June 26, 2019). "Detroit startup StockX now worth $1B: How it got rare status". Detroit Free Press. Retrieved August 12, 2019.
  13. Milligan, Ellen (January 28, 2019). "Sneakers Auction Company Opens in London and Plans a Store". Bloomberg.com. Bloomberg L.P. Retrieved April 23, 2019.
  14. Griffith, Erin (June 26, 2019). "Buy Low-Tops, Sell High-Tops: StockX Sneaker Exchange Is Worth $1 Billion". The New York Times. Retrieved August 12, 2019.
  15. Brody, Liz (August 21, 2019). "How These Fans Made Millions of Dollars, Starting With Some Collectible Sneakers". Entrepreneur. Retrieved August 27, 2019.
  16. Burns, Matt (September 12, 2018). "Detroit's StockX raises $44M from GV and Battery to expand marketplace internationally". TechCrunch. Retrieved April 23, 2019.
  17. Gebel, Meira (September 13, 2018). "Detroit-based StockX to hire 1,000 with $44M investment". Detroit Free Press. Retrieved April 24, 2019.
  18. Walsh, Dustin (April 19, 2019). "StockX poised to take billion-dollar leap". Crain's Detroit Business. Retrieved April 24, 2019.
  19. Finkel, Adam (September 20, 2018). "StockX Laces Up". The Detroit Jewish News. Retrieved April 24, 2019.
  20. Frank, Annalise (May 17, 2019). "Detroit-based StockX takes online exchange streetside in New York". Crain's Detroit Business. Retrieved August 12, 2019.
  21. Wood, Zoe (June 8, 2019). "Sole traders: why there's a whiff of money in old trainers". The Guardian. Retrieved August 12, 2019.
  22. Stein, Joshua David (September 18, 2018). "When a New Jordan is Released, This Sneaker Authenticator Is Hard at Work for Weeks". Town & Country. Retrieved April 24, 2019.
  23. Hyman, Dan (July 6, 2018). "A Nasdaq for Sneakerheads? E-Commerce Site Aims to Tame 'Chaos' of Luxury Market". The New York Times. Retrieved April 24, 2019.
  24. Kaley, Roshitsh (May 23, 2019). "StockX Opens First Location in NYC, Announces Collectibles Vertical". Women's Wear Daily. Retrieved August 12, 2019.
  25. Clifford, Tyler (September 19, 2017). "Eminem, StockX team up on hurricane relief fundraiser". Crain's Detroit Business. Retrieved April 24, 2019.
  26. Orosz, Nora-Grayce (March 13, 2018). "Grab Exclusive Items From Wu-Tang Clan and StockX's Charity IPO". Complex. Retrieved April 24, 2019.
  27. Krastz, Roger (March 13, 2018). "Wu-Tang Clan and StockX Launch C.R.E.A.M. Charity Campaign". XXL. Retrieved April 24, 2019.
  28. Deng, Victor (August 8, 2019). "StockX Offering Free Fraud and Identify Theft Protection After Hack". Complex. Retrieved August 12, 2019.
  29. Patel, Sahil (September 11, 2019). "Sneaker Marketplace StockX Seeks New Customers With Bleacher Report Deal". The Wall Street Journal. Retrieved September 17, 2019.
  30. Anyanwu, Obi (September 11, 2019). "StockX Names Deena Bahri First Chief Marketing Officer". Women's Wear Daily. Retrieved September 17, 2019.
  31. "StockX Co-Founder Josh Luber Is Leaving the Company". sports.yahoo.com. Retrieved 2020-09-15.
  32. Alvarez, Edgar (April 10, 2019). "The best apps for buying sneakers". Engadget. Retrieved April 24, 2019.
  33. Evans, Jonathan (January 22, 2019). "Resale Juggernaut StockX Is Launching Its Own Slides Today". Esquire. Retrieved April 24, 2019.
  34. Wolf, Cam (September 13, 2018). "The Race to Be the Biggest Resale Site in the World Is Heating Up". GQ. Retrieved April 23, 2019.
  35. Sims, Josh (April 17, 2019). "How StockX is putting the ticks on sneakers – with Mark Wahlberg and Eminem's help". South China Morning Post. Retrieved April 23, 2019.
  36. Bobila, Maria (September 12, 2018). "StockX Raises $44 Million in Series B Funding". Fashionista. Retrieved April 24, 2019.
  37. "Sneaker site StockX raises funds, hires eBay executive". Reuters. June 26, 2019. Retrieved August 12, 2019.
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