StockX is an online marketplace and clothing reseller, primarily of sneakers. Since November 2020, it has also opened up to electronic products such as game consoles, smartphones and computer hardware. 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 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
Moonachie (; ) is a borough in Bergen County, New Jersey, in the Hackensack River watershed. As of the 2010 United States Census, the borough's population was 2,708,Tempe, AZ
, settlement_type = City
, named_for = Vale of Tempe
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.
Scott Cutler
Scott Michael Cutler is an American songwriter, musician, record producer, and music executive. As a member of the alternative rock band Ednaswap, he co-wrote " Torn" which was covered in 1997 by Natalie Imbruglia. Her recording became the wor ...
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.
History and operations
The
startup company
A startup or start-up is a company or project undertaken by an entrepreneur to seek, develop, and validate a scalable business model. While entrepreneurship refers to all new businesses, including self-employment and businesses that never intend t ...
was founded by
Dan Gilbert
Daniel Gilbert (born January 17, 1962) is an American billionaire businessman, investor, and philanthropist. He is the co-founder and majority owner of Rocket Mortgage, founder of Rock Ventures, and owner of the National Basketball Association ...
, Josh Luber, Greg Schwartz, and Chris Kaufman starting in 2015, and launched in February 2016. Luber had previously founded StockX's predecessor website about rare
sneakers
Sneakers (also called trainers, athletic shoes, tennis shoes, gym shoes, kicks, sport shoes, flats, running shoes, or runners) are shoes primarily designed for sports or other forms of physical exercise, but which are now also widely used fo ...
called Campless (established during 2012–2013), a site which was featured in Josh Luber's TED Talk on the sneaker market. After Gilbert acquired Campless from Luber, Luber relocated from Philadelphia to work from Gilbert's
One Campus Martius
One Campus Martius is a building located in downtown Detroit, Michigan. It began construction in 2000 and was finished in 2003. It has seventeen floors in total, fifteen above-ground, and two below-ground, and has of office space. The high-rise ...
building in
Downtown Detroit
Downtown Detroit is the central business district and a residential area of the city of Detroit, Michigan, United States. Locally, downtown tends to refer to the 1.4 square mile region bordered by M-10 (Lodge Freeway) to the west, Interstate 75 ( ...
as chief executive officer. StockX opened its first international headquarters in London in October 2018.
Scott Cutler
Scott Michael Cutler is an American songwriter, musician, record producer, and music executive. As a member of the alternative rock band Ednaswap, he co-wrote " Torn" which was covered in 1997 by Natalie Imbruglia. Her recording became the wor ...
was appointed
chief executive officer
A chief executive officer (CEO), also known as a central executive officer (CEO), chief administrator officer (CAO) or just chief executive (CE), is one of a number of corporate executives charged with the management of an organization especially ...
in June 2019.
The company has more than 800 employees, as of August 2019. StockX is among the fastest-growing startups in Detroit and Michigan, as of late 2018.
In addition to the One Campus Martius office, StockX has an authentication facility in Detroit's Corktown neighborhood. 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. The larger Corktown facility increased the number of authentications. StockX opened a second authentication center in
Tempe, Arizona
, settlement_type = City
, named_for = Vale of Tempe
, image_skyline = Tempeskyline3.jpg
, imagesize = 260px
, image_caption = Tempe skyline as se ...
, in late 2018, followed by two more in
Moonachie, New Jersey
Moonachie (; ) is a borough in Bergen County, New Jersey, in the Hackensack River watershed. As of the 2010 United States Census, the borough's population was 2,708, In 2019, the company opened a fifth authentication center in
Eindhoven
Eindhoven () is a city and municipality in the Netherlands, located in the southern province of North Brabant of which it is its largest. With a population of 238,326 on 1 January 2022,
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. 150 buyers and sellers were selected from 3,000–5,000 applicants to attend the second "StockX Day" in April 2018. 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.
StockX has collaborated with numerous celebrities and companies on charitable initiatives. In 2017,
Eminem
Marshall Bruce Mathers III (born October 17, 1972), known professionally as Eminem (; often stylized as EMINƎM), is an American rapper and record producer. He is credited with popularizing hip hop in middle America and is critically acclai ...
collaborated with the company to raffle off his
Air Jordan
Air Jordan is an American brand of basketball shoes produced by American corporation Nike. The first Air Jordan shoe was produced for Hall of Fame former basketball player Michael Jordan during his time with the Chicago Bulls in late 1984 and ...
sneakers designed in collaboration with
Carhartt
Carhartt, Inc. is an American apparel company founded in 1889, known for heavy-duty working clothes such as jackets, coats, overalls, coveralls, vests, shirts, jeans, dungarees, fire-resistant clothing and hunting apparel. Carhartt remains a fam ...
to raise funds for the Greater Houston Community Foundation Hurricane Harvey Relief Fund and
Team Rubicon
Team Rubicon is an international non-government organization (NGO) specializing in disaster response.
History
Team Rubicon was formed in January 2010 following the Haiti earthquake, when William McNulty and Jacob "Jake" Wood led a medica ...
to support relief efforts in Texas and Florida following
Hurricane Harvey
Hurricane Harvey was a devastating Category 4 hurricane that made landfall on Texas and Louisiana in August 2017, causing catastrophic flooding and more than 100 deaths. It is tied with 2005's Hurricane Katrina as the costliest t ...
.
Nike Inc.
Nike, Inc. (stylized as NIKE) is an American multinational corporation that is engaged in the design, development, manufacturing, and worldwide marketing and sales of footwear, apparel, equipment, accessories, and services. The company is head ...
's debut of
LeBron James
LeBron Raymone James Sr. (; born December 30, 1984) is an American professional basketball player for the Los Angeles Lakers of the National Basketball Association (NBA). Nicknamed "King James", he is widely considered one of the greatest pl ...
' first retro sneaker via StockX marked the first time the brand bypassed
retail
Retail is the sale of goods and services to consumers, in contrast to wholesaling, which is sale to business or institutional customers. A retailer purchases goods in large quantities from manufacturers, directly or through a wholesaler, and t ...
and went directly to the
secondary market
The secondary market, also called the aftermarket and follow on public offering, is the financial market in which previously issued financial instruments such as stock, bonds, options, and futures are bought and sold. The initial sale of the s ...
. In 2018, StockX and
Wu-Tang Clan
Wu-Tang Clan is an American hip hop group formed in Staten Island, New York City, in 1992. Its original members include RZA, GZA, Ol' Dirty Bastard, Method Man, Raekwon, Ghostface Killah, Inspectah Deck, U-God, and Masta Killa. Close affili ...
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.
StockX suffered a
data breach
A data breach is a security violation, in which sensitive, protected or confidential data is copied, transmitted, viewed, stolen or used by an individual unauthorized to do so. Other terms are unintentional information disclosure, data leak, info ...
in mid-2019. In September, the company and
Bleacher Report
Bleacher Report (often abbreviated as B/R) is a website that focuses on sport and sports culture. Its headquarters are in San Francisco, with offices in New York City and London.
Bleacher Report was acquired by Turner Broadcasting System in Aug ...
reached a multiyear advertising agreement, and Deena Bahri became StockX's first
chief marketing officer
A chief marketing officer (CMO), also called a global marketing officer or marketing director, or chief brand officer, is a corporate executive responsible for managing marketing activities in an organization. Whilst historically these titles may ...
.
In September 2020, StockX co-founder Josh Luber left the company.
In November 2021, StockX announced that it had signed
UConn
The University of Connecticut (UConn) is a public land-grant research university in Storrs, Connecticut, a village in the town of Mansfield. The primary 4,400-acre (17.8 km2) campus is in Storrs, approximately a half hour's drive from Ha ...
basketball superstar
Paige Bueckers
Paige Madison Bueckers ( ; born October 20, 2001) is an American college basketball player for the University of Connecticut (UConn) Huskies of the Big East Conference.
At Hopkins High School in Minnetonka, Minnesota, Bueckers was ranked as th ...
as its primary spokesperson for its basketball and women's sports lines.
In January 2022, StockX announced the ability to buy and sell
NFTs
The National Film and Television School (NFTS) is a film, television and games school established in 1971 and based at Beaconsfield Studios in Beaconsfield, Buckinghamshire, England. It is featured in the 2021 ranking by ''The Hollywood Repor ...
on its marketplace.
Business model
StockX serves as an
online marketplace
An online marketplace (or online e-commerce marketplace) is a type of e-commerce website where product or service information is provided by multiple third parties. Online marketplaces are the primary type of multichannel ecommerce and can be a way ...
, facilitating
auctions
An auction is usually a process of buying and selling goods or services by offering them up for bids, taking bids, and then selling the item to the highest bidder or buying the item from the lowest bidder. Some exceptions to this definition ex ...
between sellers and buyers, then collecting transaction and payment fees. Sellers send purchased items to StockX facilities for inspection and verification, then authenticated products are shipped to buyers. StockX features a "
stock market
A stock market, equity market, or share market is the aggregation of buyers and sellers of stocks (also called shares), which represent ownership claims on businesses; these may include ''securities'' listed on a public stock exchange, as ...
-like"
variable pricing
Variable pricing is a pricing strategy for products. Traditional examples include auctions, stock markets, foreign exchange markets, bargaining, electricity, and discounts. More recent examples, driven in part by reduced transaction costs using ...
framework and discloses price histories for specific items. StockX is most known for
sneakers
Sneakers (also called trainers, athletic shoes, tennis shoes, gym shoes, kicks, sport shoes, flats, running shoes, or runners) are shoes primarily designed for sports or other forms of physical exercise, but which are now also widely used fo ...
and streetwear but also carries other clothing and accessories such as handbags and watches. StockX surpassed
eBay
eBay Inc. ( ) is an American multinational e-commerce company based in San Jose, California, that facilitates consumer-to-consumer and business-to-consumer sales through its website. eBay was founded by Pierre Omidyar in 1995 and became a ...
in total sneaker transactions in 2017. Counterfeit items are returned to sellers, and buyers are refunded.
StockX charges a 3 percent processing fee for all resellers, and a 9.5 percent transaction fee for new users, which decreases with experience. Prior to the company's expansion into Europe, StockX only advertised in the United States and accepted U.S dollars. Fifteen percent of the company's buyers were international, as of September 2018.
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."). The shoes were printed with the phrase "Ben Baller did the chain", a lyric from
ASAP Ferg
Darold Durard Brown Ferguson Jr. (born October 20, 1988), known professionally as ASAP Ferg (stylized as A$AP Ferg), is an American rapper from New York City's Harlem neighborhood. Aside from his solo career, he is a member of the hip hop collec ...
's song "
Plain Jane
Plain Jane may refer to:
*''Plain Jane'', a 1922 play by McElbert Moore
* ''Plain Jane'' (Wednesday Theatre), an Australian TV movie
* ''Plain Jane'' (TV series), a U.S. TV series airing on The CW
*Plain Jane (band), an American band from the lat ...
" (2017).
Funding
StockX has received financial backing from Gilbert, investment companies
Battery Ventures
Battery Ventures is an American technology-focused investment firm. Founded in 1983, the firm makes venture-capital and private-equity investments in markets across the globe from offices in Boston, Silicon Valley, San Francisco, Israel and Lon ...
Scooter Braun
Scott Samuel "Scooter" Braun (born June 18, 1981) is an American entrepreneur, investor, and entertainment executive. Known as the manager for artists such as Ariana Grande, Justin Bieber, J Balvin, Demi Lovato, The Kid Laroi and other artists ...
,
Jon Buscemi
Jon Buscemi ( , ; born October 3, 1975) is an Italian-American fashion designer known for his work at Oliver Peoples, co-founding Gourmet, and his eponymous brand Buscemi. Jon Buscemi is a cousin of the famous actor Steve Buscemi.
Career
After ...
,
Eminem
Marshall Bruce Mathers III (born October 17, 1972), known professionally as Eminem (; often stylized as EMINƎM), is an American rapper and record producer. He is credited with popularizing hip hop in middle America and is critically acclai ...
Ted Leonsis
Theodore John Leonsis (born January 8, 1957) is an American businessman, investor, filmmaker, author, philanthropist, and former politician. He is a former senior executive with America Online (AOL), and the founder, chairman, and CEO of Monumen ...
, and
Mark Wahlberg
Mark Robert Michael Wahlberg (born June 5, 1971), former stage name Marky Mark, is an American actor, businessman, and former rapper. He has received multiple accolades, including a BAFTA Award, and nominations for two Academy Awards, three ...
. The company raised $6 million in February 2017. StockX received $44 million in a second
venture round
A venture round is a type of funding round used for venture capital financing, by which startup companies obtain investment, generally from venture capitalists and other institutional investors. The availability of venture funding is among the ...
in September 2018. In addition to Battery and GV, investors included
Steve Aoki
Steven Hiroyuki Aoki (, ; born November 30, 1977), best known as Steve Aoki, is an American DJ, record producer, music programmer, and record executive.
,
Marc Benioff
Marc Russell Benioff (born September 25, 1964) is an American internet entrepreneur and philanthropist. He is the co-founder, chairman and CEO of Salesforce, an enterprise cloud computing company. In September 2018, Benioff acquired ''Time''.
...
,
Don C
Don Crawley, known professionally as Don C, is an American streetwear designer from Chicago, Illinois. His family comes from Louisiana.
Crawley was a manager for Kanye West, and an executive at Kanye West's G.O.O.D. Music label. He was also th ...
, and
Karlie Kloss
Karlie Elizabeth Kloss (born August 3, 1992) is an American fashion model. ''Vogue Paris'' declared her one of the "top 30 models of the 2000s" when she was 17.
Kloss was a Victoria's Secret Angel from 2013 until 2015; she resigned to study at ...
. The investment helped fund StockX's international expansion.
In June 2019, StockX raised $110 million and was valued at $1 billion in another venture round. Investors included
General Atlantic
General Atlantic (also known as "GA") is an American growth equity firm providing capital and strategic support for global growth companies, headquartered in New York, United States. The firm was founded in 1980 as the captive investment team for ...
,
GGV Capital
GGV Capital is a global venture capital firm that invests in seed-to-growth stage investments across Consumer/New Retail, Social/Internet, Enterprise/Cloud and Smart Tech sectors.
The firm was established in 2000 in Singapore and Silicon Valley, ...
, and
Yuri Milner
Yuri Borisovich (Bentsionovich) Milner (russian: Юрий Борисович (Бенционович) Мильнер; born 11 November 1961) is a Soviet-born Israeli entrepreneur, venture capitalist and physicist. He is a cofounder and former c ...
's firm
DST Global
DST Global is a venture capital and private equity firm that primarily invests in late-stage internet companies. DST Global has been described as one of the largest and most influential venture firms in the world, with an estimated $50 billion in ...