StockX is a private company with a massive amount of fundraising under its belt. The company is moving into a position where there won’t be another funding round. The company will have to IPO. In the first post in this series, I explained why the platform implemented guardrails to offset a slow market. Throughout this…
Listen to the article: The sneaker industry needs nuance. Instead, the business is often looked at in extremes. Either, The sky is falling, or kicks are the hottest alternative commodities in the world. Discussing the reality of the industry isn’t exciting. It’s much easier to capture attention with complaints or praise. I’ve discussed in the…
Video Breakdown: 0:00 Intro 2:35 Stadium Goods 3:45 StockX & eBay 6:25 Disruptions Created Resale 10:45 OGs Get Diminished 12:25 The Spikes Lied 13:55 UGG is Top 10 15:55 Top 20 Sold on StockX 18:55 Buyers Have Options 21:10 The Greater Fool 24:46 The Big Reset 24:10 Wrap-Up eBay purchased SneakerCon and attempted to ramp…
Note: When reselling reverts to only hyped and limited products, the sneaker market is trending down. A healthy general release market in third party sales is a good thing. In a recent discussion with Matthew Kish of Business Insider I utilized resale data to show a slowdown in the sale of Nike footwear. While I…
This paper is a short discussion on Sneaker Resale looking at the recent decline in sales on third party platforms like eBay and StockX, while showing how demand is still there for the products on a platform like Amazon. Chapters Ch. 1 Trending . . . . . . . . . pg. 1 Ch….
This paper is a short discussion on Sneaker Resale looking at the recent decline in sales on third party platforms like eBay and StockX, while showing how demand is still there for the products on a platform like Amazon.
Chapters
Ch. 1 Trending . . . . . . . . . pg. 1
Ch. 2 Selling? . . . . . . . . . pg. 7
Ch. 3 StockX’s Mistake . . . . . . . . pg. 10
Ch. 4 The Factors . . . . . . . . . pg. 11
Important Data Sets for this Paper
Amazon High Demand Recommendations
Why is this important?
The CSV Recommendation Shows what products are in high demand on Amazon. The most important aspect is the average price the product sells for vs how much the product sells for on StockX or eBay.
eBay Year over Year December 21 – March 22 vs December 22 – March 23
Why is this important?
These eBay graphs provide an opportunity to compare the decline of sales on eBay in previous years to the growth of sales on eBay after Nike began negatively discussing StockX during the ongoing lawsuit. These graphs also show the decline in sales of the most resold items.
Individual Seller Detailed Page Sales and Traffic
Why is this important?
A limited set of information, but extremely important in establishing how well a seller performs on Amazon with product that can also be sold on StockX.
Last month I wrote a post on how resale was slowing down on both StockX and eBay. During the time since I wrote that post, Sneaker Twitter and Sneaker IG have exploded with discussions on Marcus Jordan backdooring Trophy Room kicks and Benjamin Kickz getting 500 pair of the coveted Union Air Jordan 2. The…
One of the primary methods of increasing the visibility of a listing on eBay is displaying a product with free shipping. On StockX the seller doesn’t pay shipping, my prediction is this will change in the very near future. Businesses, in response to Amazon’s long-standing policies which have shaped all of e-commerce, all offer some…
Matt Priest and Andy Polk interview me for episode #309 of Shoe-in-Show. The question is how resale is being shaped by the supply chain and by StockX becoming the dominant source in sneaker resale. Check out the entire episode here: https://shoeinshow.com/episode/309-chris-burns-lights-again/
Year over year comparison finally reflects the reality of what I’ll label as Unassisted ReSale vs Assisted ReSale. What do I mean by URS vs ARS? Unassisted is the process of acquiring sneakers via legitimate methods: Retail purchasing and arbitrage, using the sneaker apps to win elusive, more coveted pairs, buying wholesale, all legit without…
Sneaker resale, like all resale, is one of the most misunderstood topics in business analysis. The Grey Market, or the place where retail arbitrage, bots and backdoors, operate to sell products for profit, is just that, grey. Consumers who hate resale and are unwilling to listen to any reasonable explanation for why it exists. Those…
An analysis of website traffic can help with discussions on DTC and brand health. I’ve chosen sneaker industry websites, brands and retailers, with two exceptions. StockX and Stadium Goods are included in this breakdown to show how Nike is the tide that lifts all boats. The other brand website growth speaks towards the in-store observation…
STORE OBSERVATIONS: 1. Hibbett Sports and City Gear have serious inventory issues. One City Gear store’s Jordan Brand wall was one of the worst things I’ve ever seen for a chain with an account in good standing with Nike. It’s not just one store either. Almost every store has a shortage of Nike inventory. This…
The reason I can unquestionably state that resale is an indicator of brand heat is because I utilize my microset of data to compare it to the information available on footwear websites covering the industry. The resale here isn’t the hyped Sacai, Travis Scott, or Yeezy resale; it’s a more realistic vision of what’s taking…
The two charts above give the average price of the shoes I sold vs the average price of shoes sold on StockX and the Suggested Retail Price. Once again, my resale has to be considered as close to wholesale accounts as possible. Most of the product is arriving straight out of Nike doors and the…
Number of Resale transactions in T1 2021 I had 2,170 transactions from January 1st to April 19th. The majority of footwear sold was in the low-mid tier pricepoint. Most of those shoes came from brand doors. The sales at the high to premium pricepoint were primarily purchased at retail. What does this mean? Nike dwarfs…
This is Part 1 of the report for the first third of 2021. I’ve been busy adjusting to the rules at retail to offset resale. Most hyped general release shoes are released via retail Apps. In brick and mortar locations, stores are flagged for selling more than five pair of shoes at a time to…
Navigating the Sneaker Industry in a DTC World
Written by Christopher D. Burns, MFA (Founder of arch-usa.com)
Paperback length 174 pages
Here is the link for my previous book on the sneaker industry: Nike’s Consumer Direct Offense, Amazon & StockX – Paperback: https://amzn.to/2XafN24
Give it a look if you like ebooks: https://amzn.to/2X97PGA
In my previous book on the sneaker industry my goal was to stress the importance for all businesses to consider themselves, and to become, media companies. The book utilized data and a research project performed with a control and variable in third party sneaker e-commerce. My prediction and coverage of Nike’s transition to their CDO strategy provided a window into how content drove engagement for the powerhouse and how retail and brands should follow suit and create their own version of content delivery systems to engage consumers.
In Sneaker Resale & Retail in the New Normal, I continue to look at the sneaker industry to find opportunities for entrepreneurs, startups and even reemerging businesses.
The Sneaker Industry can be compared to the dot com boom of the 90s. Investments are ringing up for footwear companies like Greats Brand. On the tech side, money is pouring into e-commerce sites like GOAT and StockX. Shops originally built on the consignment model, like Stadium Goods, are being funded by fashion houses, and…
Navigating the Sneaker Industry in a DTC World
Written by Christopher D. Burns, MFA (Founder of arch-usa.com)
Paperback length 174 pages
Here is the link for my previous book on the sneaker industry: Nike’s Consumer Direct Offense, Amazon & StockX – Paperback: https://amzn.to/2XafN24
Give it a look if you like ebooks: https://amzn.to/2X97PGA
In my previous book on the sneaker industry my goal was to stress the importance for all businesses to consider themselves, and to become, media companies. The book utilized data and a research project performed with a control and variable in third party sneaker e-commerce. My prediction and coverage of Nike’s transition to their CDO strategy provided a window into how content drove engagement for the powerhouse and how retail and brands should follow suit and create their own version of content delivery systems to engage consumers.
In Sneaker Resale & Retail in the New Normal, I continue to look at the sneaker industry to find opportunities for entrepreneurs, startups and even reemerging businesses.
Stockx has democratized the retail process by creating a marketplace that functions autonomously and without checks and balances for the seller or buyer. There is a drawback to the ease in which anyone can utilize StockX. The site has diminished the amount of business savvy that could be generated by learning about the resale business…
Source: Farfetch shares jump 6% after $250 million Stadium Goods acquisition announced Marketplace explained that Farfetch’s share price increased after acquiring Stadium Goods. Without any real detailed information on several aspects of how the acquisition works it’s hard to make a real assessment, but there are several factors that need to be discussed: Luxury Brands…
