How the Stock Market Model Is Creating Competition for Mega Brands – Zing! Blog by Quicken Loans (blog)

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Two friends online shopping

Imagine this: The new Nike LeBrons just dropped, you have to get your hands on them (or your feet in them, I guess) and only a limited number of pairs will be released. You have a few options.

You could:

  • Stand in line at the sneaker store for hours and hope they ordered enough for everyone waiting
  • Scour eBay hoping for an authentic pair that doesn’t cost more than your mortgage
  • Find a Craigslist ad written in all caps and take your chances the seller isn’t Pennywise
  • Accept that you’ll never land those dream LeBrons and cry softly in the corner

But what if there were a better way – a way to allow buyers and sellers to exchange items in a secure fashion while allowing the market to set the price?

The better way to buy and sell resale items is here! It’s in the form of StockX, which uses the stock market model to set the price for resale items and is disrupting the one-size-fits-all model of eBay, Craigslist and even Amazon.

“One of the biggest problems with sites like eBay is that they lack transparency and authenticity,” says Greg Schwartz, COO and cofounder of StockX, the “stock market of things.” “StockX was designed to give buyers and sellers a live marketplace that connects buyers and sellers the same way that an actual stock exchange does, while adding visibility, anonymity and security to all transactions.”

StockX launched in 2015 after Greg Schwartz, Josh Luber and Dan Gilbert decided that there needed to be a better way to buy and sell sneakers. Their answer was StockX. “Dan [Gilbert] liked the idea of using the stock market model for in-demand consumer products,” Schwartz continues. “The value goes up and down based on supply and demand.” StockX initially applied this model to the sneaker resale market but has since expanded to watches and handbags, and it’s become a huge success.

StockX is on track to exceed its 2017 goal of $100 million in sales volume, a huge testament to the growth of the site. As if that weren’t enough, StockX has also gained the backing of big-name investors like Eminem, Mark Wahlberg, Steve Case and Tim Armstrong, to name a few. StockX is going to continue creating more competition for other resale and retail sites, because they offer what places like eBay and Amazon don’t: authenticity, anonymity and transparency.

Authenticity

When you buy an item from eBay, you have to just trust what you’re getting from the seller is what they say it is. You don’t know if they’re legit, and how would you even be able to check? StockX differentiates itself with its expertise in what it is you’re buying.

“We have a team of experienced authenticators working for StockX,” Schwartz mentions. “When a sale happens on StockX, the seller has two days to ship their item to us. Once we get the product, shoes, handbag or watch, our experts authenticate it. Funds are then released to the seller, and we ship the shoes off to the buyer that same day. Buyers have peace of mind knowing what they’re getting is authentic, and the seller gets their money in a timely fashion.”

Beyond just giving validation to a rare product, StockX gives a sense of community to its customers. StockX produces original content in the form of StockX TV, which takes a deep dive into current sneaker trends and features celebrity guest appearances. ESPN has even featured StockX CEO and co-founder Josh Luber in regular segments on SportsCenter. You can catch up on StockX TV here:

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Anonymity

When you search for a pair of shoes on a resale site, thousands of results show up. What’s the difference in all these listings? Why is one more expensive than the other? Which one should you buy? If you’ve ever purchased something on eBay, you know the struggle is real.

Most of the time, you’ll end up buying from the person who has the highest ratings with greatest number of ratings. You can trust them since they’ve been doing business so much and people seem to be satisfied. But, what do those ratings really mean? Can you be sure you’re getting what’s listed? StockX makes this process simple.

“Just like with the NYSE,” Schwartz says, “you don’t need to worry about who you are buying from because we are in the middle. We have the experts who authenticate every product, so you know you’re getting exactly what you paid for.”

Rather than the overwhelming process of sifting through thousands of listings, on StockX, each product has a single product page. The market sets the price, and all the products are expected to be in the same condition. What you pay for is exactly what you get, no matter who is buying or selling it.

Transparency

StockX provides historical pricing data for every product they list. Buyers and sellers are able to see what the market price is for each item. You can see its current worth and how it has been trending over time. Much like on the stock market, the price of products on StockX changes daily, based on supply and demand. And all of that data is available for anyone who wants it.

StockX provides a more in-depth and accurate experience for both buyers and sellers. They are able to feel confident in what is being sold. Buyers will get what they paid for, and the sellers will get the money from their sale in a timely fashion without any hassle. Above that, specialty resale sites keep customers up to date with original content and news about what they actually care about. It’s a custom-made experience – and that’s something eBay and Amazon just can’t provide.

For more information, check out StockX!

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