StockX has launched an online sneaker resale space to sell high-demand, limited edition products at the real market price.
The Detroit-based company expected to launch with more than 15,000 pairs of limited-release sneakers representing 3,500 models; at the time of publishing, the site listed 19,867 pairs. StockX will only allow for the sale of “deadstock,” unworn, boxed sneakers.
The StockX market is based on the philosophy of providing an open, unbiased platform where participants can anonymously buy and sell limited-edition products with stock market-like visibility, with plans to later move into additional product categories besides sneakers. The historical price and volume metrics, real-time bids and offers, time-stamped trades and additional analytics will be available for every sneaker model.
Buyers of sneakers on StockX will be assured of the shoes’ authenticity with the company’s proprietary process. According to TechCrunch, the seller ships an item to the company’s Detroit facilities where it is authenticated and then shipped to the buyer.
The StockX platform will also allow users to create their own sneaker portfolio and upload their current collection. StockX will price the portfolio so that the user can evaluate gains and losses and compare their collection to other users on the platform. This feature grants sneaker traders the kind of metrics that have previously only been available for stock analysts.
In addition to the trading platform, StockX will also provide in-depth market analysis and the latest domestic and global sneaker news.
Josh Luber is StockX’s CEO and co-owner, previously the founder of Campless.com, a sneaker data website which is merging with StockX.
Luber said, “The online secondary sneaker market has been around for more than 15 years, and it has grown exponentially during that time, but up until today, was still using outdated e-commerce platforms designed in the late 90’s,” said Luber. “The simplicity and sophistication of a stock market is the perfect platform to catapult the industry into present day and well beyond.”
Lubert’s co-founder for StockX is Dan Gilbert, founder and chairman of Rock Ventures and Quicken Loans and the majority owner of the Cleveland Cavaliers. Joining in the investment in high-tech venture capital firm SV Angel and its founder and co-managing partner, Ron Conway of Detroit Venture Partners (DVP), Ludlow Ventures and Courtside Ventures. The company is also expected to announce an expanded investor group consisting of high-profile entertainers, athletes and figures in the sneaker world.
StockX plans to expand to marketplaces for other consumer products that have a need for a secondary market. According to TechCrunch, prospective markets include streetwear and handbags, and Luber said the model would work well for coins, comic books or watches.
Gilbert said, “We are going to bring the kind of trading platform and visibility to tangible products that financial and commodities markets have used for decades.” He continued, “We believe this is the right time to extend this fundamental concept to appropriate sectors of the online consumer marketplace.”