StockX: Not Just For Kicks Anymore!

One of the newer entrants in the online retail market, StockX, is hoping to change the way we shop. The online platform, which models itself after stock markets, is much more than “the eBay for sneakers”. It provides buyers and sellers with data, including historical prices and sale trends, and examines products to ensure their authenticity. At its inception, the company’s main commodity was sneakers. However, over the last few years, it has expanded into other markets such as electronics, clothing, and collectables.

StockX enjoyed an intense period of growth during the pandemic. In April 2021, StockX raised $255 million in financing, valuing the company at $3.8 billion (triple its valuation from 2019). In 2020 it reported $1.8 billion in gross merchandise volume, nearly doubling its total from the previous year. StockX also introduced a new concept in 2019 called the Initial Product Offering, which involves partnerships with brands to auction newly released products. The company planned to go public in the first half of 2022, retaining the services of Morgan Stanley and Goldman Sachs to do so.

But much like the stock market, what goes up, must come down and 2022 has not been kind to StockX. In February, Nike sued the company for trade-mark infringement over its use of the Nike brand in its Non-Fungible Tokens. In May 2022, Nike took things a step further, accusing StockX of selling fake merchandise. Finally, In June 2022, the company was forced to layoff 8% of its workforce. With all this and the current economic conditions in mind, it appears that StockX has pushed back its plans to go public. 

It remains to be seen what the future holds for StockX. What is clear is that the “stock market” model could have a profound impact on the way we shop for certain consumables going forward. The success of the Initial Product Offering could provide a whole new avenue for companies to market new and limited edition items. Moreover, the data rich platform could become a model for other online retailers that wish to empower their users with information about the products they buy and sell.