The sneaker reselling market, once a goldmine for quick flips and high profits, is currently undergoing a significant shift. Amidst this changing landscape, StockX, a major player in the market, is making strategic changes to ensure they continue to dominate the secondary market.
The Quick Flip Dilemma
In the past, the sneaker reselling market thrived on the concept of 'quick flips'. Resellers would buy limited edition sneakers at retail price and sell them at a higher price, making a substantial profit. However, this trend is changing. The current drops are not yielding the profits they once did. Resellers are finding it increasingly difficult to make a profit, with many resorting to buying under retail price in the hopes of reselling at a decent price. This shift is causing a ripple effect in the market, with the once profitable quick flip model now becoming a challenge.
Shelf Life: The New Normal?
Another noticeable trend in the market is the increasing number of sneakers sitting on shelves. This is a stark contrast to the past when limited edition sneakers would sell out in minutes. The demand for these sneakers seems to be waning, with more pairs remaining unsold. This could be attributed to various factors, including market saturation, changing consumer preferences, or the economic impact of the pandemic. Regardless of the reason, this trend is a clear indication of the changing dynamics in the sneaker reselling market.
StockX: Adapting to Change
In response to these market changes, StockX is making strategic changes to ensure they continue to dominate the secondary market. On July 1, 2023, StockX will roll out lower fees for all sellers globally as part of their revamped seller program.
This program includes new perks and benefits, as well as adjusted seller level qualification thresholds.
The new fee structure is designed to be attractive to sellers and demonstrates StockX's commitment to empowering entrepreneurship in their community. The new fee for first-time sellers is 9%, while StockX’s most active sellers can earn as low as 5%.
The company is keeping policies in place that induce positive behavior from sellers, such as minimum ship times.
These practices are vital to StockX providing a smooth buying experience from start to finish.
StockX's strategy is a clear indication of the company's adaptability and willingness to evolve with the market.
By lowering their fees, they are making it more attractive for sellers to use their platform, thus increasing their market share. This move could potentially offset the impact of the current market trends and ensure their continued dominance in the secondary market.
Credit : StockX
Holding for Bigger Profits
Interestingly, some resellers are still choosing to hold onto their sneakers instead of opting for quick flips.
These risk-takers are betting on the potential for bigger profits down the line. This strategic move could pay off if the market rebounds and demand for these sneakers increases.
We saw a lot of holders loosing money after the Covid-19, actually because of the inflation but also the recession. We already wrote about the inflation here.
The sneaker reselling market is undoubtedly going through a period of change. The once profitable quick flip model is no longer as lucrative, and the increasing number of unsold pairs indicates a shift in consumer demand.
However, companies like StockX are adapting to these changes, indicating that the market is far from crashing. It is merely evolving, and those who can adapt to these changes will continue to thrive.
While the current trends may seem concerning to some, it's important to remember that markets are dynamic and constantly changing. The sneaker reselling market is no different.
As it navigates through these changes, it will be interesting to see how it evolves and what the future holds for this once highly profitable market.
Find here all the pairs only available on the resale market.