Is StockX Legit? Everything you need to know about StockX
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What is StockX?
Love it or not, the secondary market plays a large role in the sneaker industry. In fact, in 2019, it is estimated that the sneaker reselling market generated $2 billion in North America and is projected to do $30 billion globally by 2030. One company taking the secondary sneaker market by storm is StockX. Founded in 2015 by Dan Gilbert, StockX is a peer-to-peer marketplace which allows users to buy and sell new sneakers, streetwear, and various other highly coveted goods and collectibles.
Is StockX legit?
Yes, StockX is legit. The Detroit-based company has over 1,000 employees, operates in 200 plus countries, and is backed by a variety of prominent business leaders and famous celebrities including private equity firm Battery ventures, multiplatinum rapper Eminem, and American fashion model Karlie Kloss. Over the past five years, StockX has grown into one of the largest and most trusted marketplaces for coveted goods. As of December 31, 2020 the company reported that it had closed 7.5 million transactions and achieved more than $1.8 billion in gross merchandise value (GMV). In its most recent series E funding, the company raised $275 million in funding putting the company's value at $3.8 billion.
What makes StockX legit beyond its impressive resume is its proprietary in-person authentication process. All items sold on the platform go through a strict authentication and quality inspection to ensure the item is no different than what a customer would receive from the store.
According to Trustpilot, StockX has a 3.4 star rating on a scale to 5 - click here to check them out.
How does StockX work?
StockX operates on a bid-ask system. Sellers set their ask price. Buyers offer their bid amount. A seller can accept a bid or a buyer can accept an ask and voila - the item is sold. As soon as a sale takes place, the buyer's card is charged.
To answer the question of the legitimacy of products being sold on StockX, let’s take a dive into how the process works. After an order is placed on StockX, the seller receives a prepaid shipping label and the product is shipped directly to StockX who serves as the middleman of the transaction. StockX then verifies the authenticity and condition of the product before repackaging it and shipping it to the buyer’s doorstep. In the event that the item doesn't pass authentication, the seller is in some cases penalized and then StockX attempts to fulfill the order. If the order cannot be fulfilled, the buyer's order is canceled.
Outside of the traditional bid-ask model that StockX operates on, the company does offer some one-off product launches like DropX's and IPO's. One of their biggest DropX's to date was for a 100 Jordan 6 PE Oregon Ducks this past December.
Furthermore, StockX offers a guarantee that every item sold on its platform is authentic. Learn all about the authentication process here.
How long does StockX take to ship?
According to StockX, the company aims to complete all orders within 7-12 business days (not including weekends or holidays). Shipping and delivery times may vary depending on how quickly the seller sends the item to StockX for authentication once the purchase has been made. After the item has successfully undergone the multi-step verification process, the buyer will receive tracking information for their shipment.
Note: Due to the ongoing coronavirus (COVID-19) pandemic, expect the potential of shipping delays.
See StockX's answer to this question
Where does StockX ship to?
Shipping to over 200 countries, StockX ships virtually anywhere on the globe.
What can I buy on StockX?
On StockX, users can buy and sell the hottest sneakers, streetwear, electronics, art, collectibles, trading cards, accessories, and soon NFTs.
Sneakers and streetwear are the platforms two largest selling categories led by brands like Jordan, Nike, Yeezy, and Supreme. Most recently, StockX has started to gain traction in the electronics space with 2020's launch of the PS5 and Xbox. At the end of 2021, StockX's product pages for the PS5 Disk and PS5 Digital US plug edition indicate that the brand has sold nearly 200k PlayStation 5's at an average sales price of $725!
How to sell on StockX?
If you’re interested in selling on StockX, simply create an account and list your item(s) for sale by placing an ask or choose to sell immediately by accepting the current highest bid price. Once an ask has been accepted by a bidder or you accept the highest bid, your item has sold. StockX will issue a prepaid shipping label to ship your item to StockX for authentication. After the item has passed verification, you get paid by StockX via PayPal. If the item fails verification, StockX sends the item back and you may be subject to a penalty fee.
Click here to learn more about the process of buying and selling on StockX
How much does StockX take?
StockX recently updated it's seller fee structure. Seller fees range from 10% to 8% depending on how much in dollars or how many items a seller sells on a quarterly basis. For a full break down of seller levels and how to lower seller fees on StockX by selling more see the chart below.
In addition to the seller fees charged by StockX, each transaction is also subjected to a 3% processing fee. For example, let's assume you're a Level 1 Seller on StockX, the total fees you would pay would be 13% of the sale amount.
How to buy on StockX?
Buying on StockX is easy: Just place a bid on an item, or buy it immediately for the buy it now price. It is important to note that bids are valid for 30 days and if your bid is accepted, your card will be immediately charged. Keep track of your active bids in your account under the "buying" tab.
Once your bid is accepted or you accept a seller's ask, the seller will then ship the item directly to StockX for verification. StockX then confirms the item is legit. If it passes authentication, then you will be issued a tracking number and the item will arrive within 7-10 business days.
How much is it to buy on StockX?
The short answer is it depends. StockX is a live marketplace where a product's price is decided by the market. Items can range from $15 and up.
As of April 22nd, 2021, StockX has implemented a 3% buyer fee to all orders on the platform. The minimum buyer fee on the platform is $4.95 and the maximum fee is capped at $29.95. Fees may increase or decrease internationally based on exchange rates.
How to cancel a StockX order?
Unfortunately, once a sale has occurred on StockX’s platform, your Ask or Bid cannot be cancelled. According to StockX, this policy was put into place to maintain the integrity of its marketplace. If you feel you have an extenuating circumstance and cannot fulfill your bid or ask, you may contact StockX and explain your case to their support team.
See StockX's answer to this question
How to delete StockX Account
The easiest way to delete an account on StockX is to email a request for account deletion. Steps below:
- Email support@stockx.com
- Request an account deletion
- See example below
Where is StockX located?
StockX’s headquarters are located at 1046 Woodward Avenue, Detroit, Michigan 48226. StockX is a global company with offices in Australia, Japan, India, Netherlands, UK, and Hong Kong.
Here is a full list of StockX's locations.
StockX alternatives
Given how large the reselling space has become, there are plenty alternatives to StockX. The most notable competitors to StockX include GOAT, eBay, Stadium Goods, Flight Club and Grailed.
Final thoughts
StockX is a legitimate place to buy and sell the latest sneakers, streetwear, electronics, and collectibles. That said, it is not a traditional e-commerce platform and users should do their research before transacting on the platform. With StockX's no return policy, it is important that you ensure that the SKU or style code is the product that you are interested in buying or selling.
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