Source: Xpress Ship Is Here
Two completely different topics on this and one won’t solve any problems, only add to the discussion around just what StockX has been doing with all of their warehouse space. First, the best performing sneakers on StockX were:
- Panda Dunk
- Yeezy Slide Marine
- Yeezy Slide Slate Grey
- Panda Dunk GS
- Panda Dunk Women
- Yeezy Foam RNR Carbon
- Yeezy Slide Black
- Crocs Classic Clog Lightning McQueen
- Dunk Cacao Wow Women
- Air Jordan 4 Retro Red Cement
What does this list tell the market? There is no market. The best performing sneakers were all readily available sneakers with considerable inventory, except the Yeezy which has remained consistent in the Slide and Foam RNR garnering some resale value. The Yeezy Foam RNR Carbon has the best price premium in the top 10 at +65, with the Crocs at +44, but everything else, using the latest slang, is mid. Prices hover between 10 and 32 dollars profit on each style. It’s unclear if the price premium is before or after the fees, but the site utilizes the SRP without tax and these numbers could be much worse than they seem.
Resale Is How It Used to Be
Resale has always been arbitraging and selling difficult to find sneakers. The fact that people could buy and flip Air Jordan 1 Mids was an anomaly. This can be seen in the fact that of StockX’s top 100 performing sneakers last month, buy and hold hasn’t worked for Air Jordan 1 Mids. A year ago, the Mid was one of the best performing models on StockX. Multiple colorways had returns of 40-80 dollars a pair. Last month only three pair showed up in the top 100 with the best return going to a PS (Fierce Pink) at 20 dollars. This is a good thing as any visit to sneaker stores offer an abundance of options.
StockX NFTs Are Live and Tied to Real Products: What Does This Mean?
Xpress Ship
Combining a discussion on StockX’s new Xpress Ship and Resale is directly connected. For years I’ve said that StockX is going to have to show a profit before deciding to IPO. Now that the stock market appears to be favoring companies going public after a few years of a down trend in IPOs, it’s probably critical StockX show that their profit margins are trending up before announcing that they are going public. Why discuss Xpress Ship as a component of improved revenue? When StockX launched their NFT Vault (the thing that led to the Nike lawsuit) the question was “How can StockX have a vault of sneakers ready to ship?” I said this in the video linked above:
My biggest question is if they have sneakers in their vault, has the site been buying footwear this entire time? If so, StockX could have a coffer of many of the best releases in sneaker culture sitting which not only takes them from being a digital third-party marketplace, but it makes StockX potentially a much bigger version of Stadium Goods and could rival some large chains without a single account with one brand (Amazing to consider).
Two years ago, I pitched eBay on a program named PAR (Pre-Authenticated Restock). I sent a similar pitch to StockX and discussed it with my rep at the company. The premise of PAR was simple, faster shipping times by working with acquisition teams and VIPs to purchase inventory outright which was already known to be authentic pairs. I even developed a logo for eBay and was ready to help the company implement the program:
eBay had hired a new GM of Sneakers and they decided to purchase SneakerCon and go in a different direction. I now realize StockX didn’t have to act on the strategy because they were already holding inventory although the site never confirmed they were. The NFT Vault provided an argument and now Xpress Ship confirms it.
Why is this important?
It’s not just faster shipping. At a time when sellers are diminishing and there aren’t as many people attempting to flip kicks StockX needs a buffer. If the market isn’t bringing in new sellers, StockX loses. If StockX has a repository of sneakers capable of being sold at or around retail ready to ship, the site is in direct competition with mainstream retailers like JD Sports and Hibbett Sports. Imagine a sneaker store with only the best-selling kicks in stock and ready to ship… now, take a look at the list of Xpress Ship sneakers: Buy Shoes & New Sneakers – Real Yeezys, Retro Jordans, Nike (stockx.com) The sneakers on the Xpress Ship list are the same models in their previous month’s best performers list. StockX is readying for an IPO. Expect more work on DropX and the StockX IPO Program to be announced soon.