Joining the likes of StockX, the online resale exchange for sneakers and streetwear, eBay will be testing all new and used sneakers sold on its platform in the U.S for $100 or more from this month onward to ensure that they are genuine. Those that pass will receive its Authenticity Guarantee. The tests will be carried out by an “independent team of experts” at a center the company has opened with Sneaker Con, a sneaker exhibition and marketplace that began in New York City in 2009 and has since held more than a hundred events for sneakerheads in more than 30 cities. eBay has also begun waiving fees on sneaker purchases of $100 or more.
The company, which is noted for being a marketplace for fakes, began issuing its Authenticity Guarantee only last month, starting with watches sold on its platform in the U.S. for $2,000 or more. According to eBay’s senior vice president and general manager for the Americas, Jordan Sweetnam, “eBay operates the world’s most diverse sneaker marketplace – with the widest selection.” Its daily sneaker listings purportedly exceed half a million on average, and 2019 saw about six million sneaker sales in North America. For Sneaker Con, its alliance with eBay will generate additional traffic.
Meanwhile, StockX, which has an authentication center for Europe as well, reports that it counted 25 million global monthly visitors to its platform in the third quarter and “continues to grow at a remarkable rate” as the resale market expands globally.
In a third-quarter snapshot looking at its international performance, StockX noted that sell-side transactions outside of the U.S. increased by 260 percent in the year to date, while non-American female users of its platform rose by 130 percent in the same period.
Outside of the U.S., 62 percent of StockX’ users in the third quarter were below the age of 25. Top international markets for the platform include France, Italy, Germany, the U.K., Japan and Hong Kong.
According to StockX, while the primary sneaker market totaled $100 billion in 2019, the secondary market reached a level of $6 billion, with 29 percent of footwear purchased online. Cowen Equity Research forecasts the value of the global sneaker resale market will rise to $30 billion by 2030, of which $19 billion will be from outside the U.S.
StockX, Goat and Stadium Goods currently dominate the sneaker resale market. As recently reported, a new equity increase has pushed Goat’s valuation up to $1.75 billion, compared with $550 million a year ago. StockX’s valuation must have risen strongly from a reported level of $1 billion reached in 2018. At the end of the same year, Farfetch, the international marketplace for luxury goods, bought Stadium Goods for $250 million.
For the past year, StockX boasts a gross merchandise value of over $1 billion with sales in 197 countries and territories. It lists France, Italy, the U.K., Spain, Germany, China, the Netherlands, South Korea, Japan and Qatar as its fastest growing markets in 2019.
The company has also detailed the best-selling shoes on its sneaker marketplace, where the Jordan 1 model had a market share of 23 percent and an average resale price of $260 in 2019, followed by the Yeezy 350, with a 18 percent market share and a $280 average resale price, and the Air Force 1, with a 6 percent market share and $274 average resale price.
Jordan was the most popular brand on StockX’s sneaker marketplace, followed by Adidas, Nike, Converse, Balenciaga, Vans and New Balance. All brands traded at premiums on the resale market, with Converse peaking at 64 percent, followed by Jordan and Vans at 61 percent. The only brand to resale at discount was Balenciaga, at minus 6 percent. However, it was the brand with the highest average resale price, at $699, among the market leaders, while Vans had the lowest at $121, followed by Converse at $183.
Regarding the trends for 2020, StockX noted that collaborations with the American rapper Travis Scott propelled the Jordan brand to the top spot in the 2019 sneaker ranking. The company expects the artist’s projects with Nike to help consolidate his dominance in the secondary market this year.
The company noted that exclusive sneaker releases nearly doubled the category’s share in the secondary market last year. It added that the popularity of women’s sneakers is expected to increase in 2020.
StockX added that smaller brands such as New Balance became major players in the resale market last year thanks to high-profile endorsers, and 2020 should be another “big year” for the brand.
Finally, the company claims that nearly a third of Gen Z consumers identify as “sneakerheads” and an “overwhelming majority” have chosen StockX as their preferred marketplace. The company, which describes itself as a “stock market of things,” was valued at $1 billion in a 2019 fund-raising round.