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 form of free shipping. The problem is companies are attempting to keep up with Amazon without understanding Amazon’s free shipping is a loss leader which the company has been trying to shore up and get under control since they launched Amazon Prime. In a post on Outvio an important discussion is being held which delivers an explanation for how and why sneaker resellers and retailers who have followed Amazon’s path are contributing to their own long-term problems which will have to be offset somewhere in the transaction process.
Amazon’s shipping policy is making it lose money. Should you? | Outvio
In the article above, the author explains that every retailer/reseller should look carefully at their business models before following Amazon. This is critical, especially in sneaker resale. When looking at eBay Sneakers and StockX a different discussion can take place. Since StockX’s inception the company hasn’t charged the seller shipping. eBay in its claim to have the lower fees has implemented defacto policies which pile up the losses for sellers and increases revenue for eBay. That is not a bad thing for eBay, but sellers are like sharks in the ocean. They are in constant motion searching for the easiest path to the buyer. This has been reflected in shifts from eBay to Amazon around 2010 and 2011. Then a shift from Amazon to StockX in 2017. With sneaker resale in decline for various reasons, it’s important to look at how shipping will play a factor in the next big shift in where sellers go.
In the chart below, the typical fees associated with a purchase are laid out. Instead of looking at how the buyer’s transaction shapes up, the focus here is on the seller’s profit and how it affects the seller and the 3rd party. eBay’s claim of lowest fees is only in regard to sneakers sold at 100 and up. The reality is, in the article above by my research, most eBay sales happen under 100 dollars. At this point in the sneaker game, a seller has to factor in which platform is the best to utilize, but if the comparison remains between eBay Sneakers Fees and StockX Fees at this moment StockX is the platform to sell on. Like I said in the first paragraph, StockX will have to adjust. Losing 3 dollars a pair isn’t a smart business strategy. As the company has been adjusting policies, expect a charge to the buyer to be implemented. The question is, how much will they charge? For eBay Sneakers the company is pushing sellers via their antiquated listing system which favors Free Shipping (equating to price hikes for buyers) and forces the use of Promoted Listings to give seller stores higher visibility. In a comment from a subscriber on YouTube, eBay Sneaker’s Fees are given more context:
The other issue with ebay is they want you to do free shipping so you get better visibility but now that they charge fees for over $100 on sneakers it’s actually worse than stockx/goat because at least they include shipping. Now you’re facing fees with ebay plus $12-17 in shipping depending which authentication center it goes to.
StockX Breakdown
| Average Cost to Ship Sneakers (FYI) | -12.00 |
| Average Sold Price of Sneakers | $100 |
| Processing Fees (Does not go to StockX) 3% | $3.00 |
| Average Fees 9% $9.00 (Goes to 3rd party) | $9.00 |
| Buyer’s shipping cost StockX (No benefit to StockX) | 12.00 |
| Seller’s shipping cost paid by StockX (Loss for StockX) | -12.00 |
| Sample Revenue for Sellers (Price minus fees Goes to Seller) | $88.00 |
| Total Revenue for StockX | -3.00 |
eBay Breakdown
| Average Cost to Ship Sneakers (FYI) | -12.00 |
| Average Sold Price of Sneakers | $100 |
| Average Fees 8% $8.00 (Goes to eBay) | $8.00 |
| Processing Fees (Does not go to eBay) 3% | $3.00 |
| eBay Buyer’s shipping cost paid by Buyer (No benefit to eBay) | -12.00 |
| eBay Authentication Shipping paid by Seller (No benefit to eBay) | -12.00 * same as Free Shipping below |
| eBay Promoted Listing Fee average 3% (Profit to eBay – Loss for Seller) | 3.00 |
| Free Shipping for visibility paid by Seller (Loss for Seller) | -12.00 * |
| Sample Revenue for Sellers (Price minus fees Goes to Seller) | $77.00 |
| Sample Revenue for eBay (Promoted Listing + Fees) | $11.00 |
