Stadium Goods launched a platform last week that it says will make mass resale at lower prices more accessible to the sneaker community.
Source by Stadium Goods allows consignors to buy and sell in bulk amongst themselves, “introducing bulk commodities trading to the sneaker aftermarket,” the streetwear marketplace said. Like efforts by Rares and StockX, the program removes the need for prospective sneaker resellers to ever physically possess the shoes, with Stadium Goods handling all shipping, authentication and warehousing itself.
The proprietary platform is part of Stadium Goods’ new “consignor experience,” StadiumSupply. Focused on helping sellers make their businesses more streamlined and profitable, StadiumSupply includes a mobile app that can scan products directly into the Seller Portal, “up-to-the-minute” inventory tracking and pricing data. The program also provides top-selling accounts with formalized white-glove service, including customized account management, reporting and strategic support based on market trends, sales velocity, price and stock on hand.
Stadium Goods touted the results of a StadiumSupply beta test it conducted with a small community of sellers. According to the company, the group sold out all listings within the first hour of Source’s launch, with the highest-priced bundle fetching $10,000. The business claims that Source buyers can expect a return of roughly 20 percent on their inventory investment.
Once a consignor creates and prices a bundle and Stadium Goods gives its approval, any other consignor can then either opt to purchase the whole grouping or an individual item. Users can also place an offer for a different price. It is up to the seller to accept or reject a bid. Once both parties have agreed on a final price, Stadium Goods will charge the buyer.
If Stadium Goods is not already in possession of any of the bundle’s items, the seller must ship the goods so that they arrive within 72 hours of the agreed sale. At this point, Stadium Goods inspects the items, using what it describes as “commercially reasonable efforts” to confirm they are authentic, unworn and meet the seller’s description. According to Source’s terms and conditions, if a good is rejected, the seller can be subject to “any applicable rejection charges.”
If Stadium Goods does remove an item, it will notify the buyer and adjust the bundle’s price accordingly. If more than half of the original bundle’s price is missing or rejected, the buyer can choose to cancel their purchase. Once Stadium Good has approved the bundle—and adjusted it if necessary—the seller receives the proceeds from the sale. At this point, title and ownership of the bundle and its goods transfers to the buyer, who can then set individual direct-to-consumer prices for each item. If DTC prices are not set within 72 hours, Stadium Goods will then price the items itself.
Stadium Goods is not the only marketplace working to remove the inconvenience of physical shoes from the sneaker resale industry. In January, StockX introduced what it called Vault NFTs. The program, which has since expanded to include trading cards, watches and other collectibles, ties virtual tokens to physical goods that StockX holds in its vaults. Those who own the NFT can choose to claim the item, or simply sell the token to someone else. Though the initiative inspired a Nike lawsuit within weeks, StockX has defended its Vault NFTs, saying that they expedite the process of trading physical products, cutting out “unnecessary costs and fees for customers.”
Former NFL safety Gerome Sapp introduced a similar idea last year centered on higher-value sneakers worth thousands of dollars. His business, Rares, acts as an alternative asset marketplace where users can buy fractional shares in specialty sneakers, such as a pair of rare, black-soled 1985 Air Jordan 1 Chicagos or the Nike Air Yeezy 1s that Ye—then Kanye West—wore to the Grammy Awards in 2008. Last month, Rares opened up its first pair of shoes for secondary trading.