How a 2016 e-commerce startup based in Detroit has a business valuation of $3.8 billion – and you probably have never heard of it.
Profitable and faster-growing businesses differentiate themselves from their competitors.
They deeply understand WHY they are the best option for their ideal buyers to only buy from them rather than any of their competitors.
StockX is one of the fastest-growing and highest valued startup businesses operating in the west.
- An online marketplace platform for buying and selling,
- Authentic sneakers,
- Re-selling streetwear,
- Collectibles and handbags,
- Since November 2020, now reselling game consoles, smartphones, and computer hardware.
Primary competitors are eBay, GOAT, Zappos, Flight Club and Stadium Goods.
How does StockX differentiate?
It acts like a stock market for goods.
- It allows sellers to list items in a perfect state and buyers to decide how much they are willing to pay.
- The process is easier, faster and better than its competitors.
- It builds trust and transparency by acting as a middleman between buyers and sellers. It has a team of experts who verify each item for sale – quality and legitimacy before sending it to the customer.
- It provides insights, trends, and valuations for both buyers and sellers on current market value, number of items sold, losses and gains on products.
- A unique characteristic of this buy and sell platform is displaying market trends. Green and red curves demonstrate if the style is going up or down in popularity. The insights make buyers and sellers more conscious about the optimum time to purchase or submit for sale.
- StockX is a stockmarket bidding system – potential buyers post their bids on the platform, and sellers post their asks. When buy and sell are equal a transaction takes place automatically.
- It focuses on hype products from Nike, Adidas- and other tier-one brands. Sneakers that are often $300 plus
It earns income by taking a cut from the buyer’s final price.
Why does it work?
- It combines a unique stock market approach with its strong network effects, supervised process of purchases, excellent user experience, and functionality that helps the online buy and sell marketplace platform keep growing and ahead of the game.
- It differentiates itself from its competitors with extreme value for buyers and sellers.
- Its marketing is 100% digital – SEO and paid search -online search is where new customers discover the brand. Retargeting via paid digital ads also occurs.
- New country entry marketing widens to include organic social media.
Is StockX redefining the future of retail?
StockX recorded USD 1.8 billion in gross merchandise value (GMV) in 2020 and closed more than 7.5 million trades (transactions).
More reading
Mainstream demand for hype: How sneaker culture influenced the marketplace development and growth?
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Thanks for reading,
David
