The online resale market is booming. Represented by one of the fastest growing consumer segments, one whose collective tastes and preferences are epitomized by a penchant for exclusive, hard-to-find, limited-run products, the space is rife with opportunities for those within the industry that are savvy enough to develop an offering that satisfies their unique interests. Combining the growth of the segment with the current pandemic-induced acceleration of e-commerce activity around the globe has resulted in increased demand within the category and a plentiful bounty available for merchants that can meet it.
It might help explain why StockX, the global leader in the online secondary resale market, experienced a record-breaking Cyber Weekend. That and, according to Scott Cutler, StockX CEO, the enthusiasm shown by StockX buyers, sellers and frontline employees.
“As in-person shopping has become increasingly difficult this year, consumers have turned to online retailers like StockX to meet their needs,” he says. “Despite lockdowns that continue around the world, our platform has remained open, stable and strong. Thanks to the diversity and liquidity of our global marketplace and the incredible work of our frontline team members, we’ve managed to continue growing at an incredible rate during this time. Our recent Cyber Weekend performance is the most recent indication of our growth.”
The company, headquartered in Detroit and operating multiple authentication and distribution centres throughout North America and Europe, including one in Toronto, specializes in facilitating the resale of authentic product across categories that include sneakers, apparel, electronics, accessories, and collectibles. Its powerful platform connects buyers and sellers of high-demand consumer goods from brands that include Jordan Brand, adidas, Nike, Supreme, BAPE, Off-White, Louis Vuitton, Gucci, and many others. Leveraging dynamic stock market pricing mechanics, StockX provides its users with unparalleled access and transparency powered by real-time data that empowers buyers and sellers to determine and transact based on fair market value.
It’s an approach that users of the site seem to trust and appreciate. And it’s also one that’s reaping benefits for the online marketplace which recently surpassed $2.5 billion in lifetime gross merchandise value. It’s an incredible achievement for an operation that hasn’t even celebrated four years of business. And it seems as though the wave of growth StockX is experiencing has yet to crest, averaging a record 25 million monthly global visitors to its website during its third quarter, and recently wrapping up an astonishing Cyber Weekend, with a 100 per cent increase in average daily gross merchandise value during the four-day period compared to Cyber Weekend 2019.
An Ever-Expanding Segment
The astounding success, which included ten million visitors to the StockX site between Friday, November 27 and Monday, November 30, is significant for the burgeoning company. But what’s more is the fact that nearly 100,000 of those visitors were new buyers transacting on StockX for the very first time. It represents a manifestation of the ever-increasing opportunities that exist within the space. And, as Cutler points out, it’s also representative of a continued shift in consumer behaviour, one that is benefitting the company exponentially.
“Resale is a rapidly expanding segment of the market,” he asserts. “As consumer preferences shift, people in Canada and around the world are increasingly choosing to shop on secondary platforms. While the global shift in consumer behavior is undoubtedly linked to Gen Z, we’re also seeing a halo effect on older generations. This growing group of next gen consumers, who seek limited-edition products over fast fashion and demand unparalleled access and complete transparency from brands, are helping to rewrite the rules of commerce.
While change is afoot for traditional retail, StockX is one of the companies that is uniquely positioned to meet the needs of a consumer that is ever-evolving.”
Breadth of Product
In addition to the impressive sales posted by the company over the recent Cyber Weekend, the breadth of product sought by its visitors located in all corners of the world is another clear indication of the expansion of the segment that continues unabated. Over the four-day shopping event, more than 20,000 different types of product were sold through StockX to buyers from more than 140 different countries.
Among the top selling products, there were lots of sneakers – the first product category offered by the company when it originated in 2017 – including the Air Jordan 4 Retro Fire Red 2020, Air Jordan 1 Retro High Black Metallic Gold 2020 and the adidas Yeezy 500 Utility Black, among an array of others. Next-gen gaming consoles were another big hit with visitors looking to scoop up the recently released Microsoft Xbox Series X and Sony PlayStation 5 Blu Ray Edition consoles just before the holidays.
The company estimates that more than one of these consoles were sold every minute on the site.
Apace With the Consumer
Experiencing such rapid growth since its inception, the pace that the leader in the online resale space has set for itself is extraordinary. But, according to Cutler, it’s a pace that’s required in order to keep up with the ever-expanding and evolving segment of willing and enthusiastic customers that it serves. And if the company can continue to do that – to satisfy the unique needs, tastes and preferences of its visitors – he believes that there remains untapped potential for StockX to grow its operation even further.
“The resale market, and the StockX platform, are growing faster than ever before, and we’re very optimistic about the future. Right now, we’re hyper-focused on global growth and category expansion while we continue to strengthen the core of our business and introduce StockX to new consumers. As we plan for 2021 and beyond, ensuring we scale the platform in a way that authentically connects with customers across the globe remains paramount.”