StockX Stoxkx History, Business Model
StockX, which people also known as Stoxkx, is an e-commerce company. StockX is primarily an online marketplace of sneakers and clothing resellers. From November 2020, it has also opened to electronic products such as game consoles, smartphones and computer hardware. The Detroit based company was founded in 2015-2016 by Dan Gilbert, Josh Luber, Greg Schwartz and Chris Kaufman. StockX in downtown Detroit has over 800 employees.
StoxkX currently has international offices in London, UK, Eindhoven, Netherlands, and certification facilities in Detroit’s Corktown neighborhood, Moonchee, NJ, and Tempe, AZ. Scott Cutler and Schwartz serve as chief executive officer and chief operating officer, respectively, and Dina Bahri became the company’s first chief marketing officer in 2019.
Stoxkx (StockX) History and operation
The startup company was founded by Dan Gilbert, Josh Luber, Greg Schwartz, and Chris Kaufman in 2015, and launched in February 2016. Luber previously founded Maxx’s predecessor website about rare sneakers called Campless (established during 2012–2013), and Schwartz served as chief operating officer. holds the position. After Gilbert acquired campuses from Luber, Luber moved from Philadelphia to Detroit to work from the Martius Building, a campus in Gilbert. StoxkX opened its first international headquarters in London in October 2018. Scott Cutler was appointed chief executive officer in June 2019.
The company has over 800 employees as of August 2019. StockX is one of the fastest growing startups in Detroit and Michigan as of the end of 2018.
In addition to a campus Martius office, StockX has an certification facility in Detroit’s Corktown neighborhood. Prior to the relocation of the certification center in June 2018, the company had a team of 15 employees who authenticated thousands of pairs of shoes daily. The larger Corktown facility increased the number of certifications. StockX opened a second certification center in Tempe, Arizona in late 2018, followed by two more in Moonchee, New Jersey and west London. In 2019, the company opened a fifth certification center in Eindhoven, Netherlands. StoxkX maintains an inventory of all counterfeit items received.
The company’s first “StockX Day” event in Detroit, which invited resellers, platform users and industry influencers to meet employees and watch operations, was held in October 2017 and was attended by nearly 200 people. 150 buyers and sellers were selected from 3,000–5,000 applicants to participate in 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 many celebrities and companies on charitable initiatives. In 2017, Eminem collaborated with the company to sell his Air Jordan sneakers to the More Houston Community Foundation Hurricane Harvey Relief Relief Fund and Team Rubicon to support relief efforts in Texas and Florida after Hurricane Harvey. did. Nike Inc.’s first retro sneaker from Newcon Gems went through StockX for the first time that the brand bypassed retail and went directly to the secondary market. In 2018, StockX and the Wu-Tang Clan collaborated on the Charity Rules for Everyone Around Me (c.r.e.a.m.) campaign; Proceeds from nine specialty products benefited the Wu-Tang Foundation to support children in underserved communities.
StockX suffered a data breach in mid-2019. In September, the company and Bleacher Report reached a multidisciplinary advertising agreement, and Dina Bahri became StockX’s first chief marketing officer. In September 2020, StockX co-founder Josh Luber left the company. In November 2021, StockX announced that it had signed Yukon basketball superstar Paige as its primary spokesperson for its basketball and women’s sports lines.
Stockx Business Model
StockX acts as an online marketplace, facilitating auctions between sellers and buyers, then collecting transaction and payment fees. Sellers send purchased items to StockX facilities for inspection and verification, then certified products are shipped to buyers. StoxkX has a “stock market-like” variable pricing structure and discloses price histories for specific commodities. StockX is best known for sneakers and streetwear but also carries other clothing and accessories such as handbags and watches. StockX surpassed eBay in total sneaker transactions in 2017. Counterfeit goods are returned to sellers, and returned to buyers.
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 advertised only in the United States and the U.S. Dollar accepted. As of September 2018, fifteen percent of the company’s buyers were international.
In January 2019, StockX partnered with celebrity jeweler and influencer Ben Bowler to sell black and red slides directly to the public, marking the company’s first “initial product offering” (“ipo” (“ip.o”). The shoes were printed with a lyric phrase from “Ben Bowler Did the Chain”, ASAP Ferg’s song “Plain Jane” (2017).
StockX (Stoxkx) Funding
StockX has also received financial support from Gilbert, investment companies Battery Ventures and GV, as well as Scooter Braun, John Buscemi, Eminem, Joe Hayden, Ted Leonis, and Mark Wahlberg. The company raised $6 million in February 2017. In September 2018, StockX received $44 million in a second venture round. In addition to Battery and GV, investors included Steve Aoki, Mark Benioff, Don C., and Karlie Kloss. 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 Battery Ventures and GV in addition to General Atlantic, GGV Capital, and Yuri Milner’s firm DST Global.