- Ethan “Moose” Read says he made $US225,000 reselling sneakers last year.
- He sells sneakers through his website, Moosetraxshop.com, and his social media accounts, as well as at various sneaker events. He also said he occasionally uses the SneakerCon app.
- Read stays away from StockX and GOAT, two leading resale marketplace, for a few reasons.
- Sign up for Business Insider’s retail newsletter, The Drive-Thru.
- Visit Business Insider’s homepage for more stories.
For most sneakerheads, resale marketplaces are a must.
GOAT and StockX, which bills itself as a stock market for sneakers and has been valued at $US1 billion, are two of the most popular online resale marketplaces for the sneaker community. Both sites act as middlemen between buyers and sellers, authenticating the shoes and charging various fees for transactions.
But as the global sneaker resale market continues to grow, some sneakerheads are turning to cheaper alternatives to make the most of an industry that a recent Cowen & Co. analysis estimated could be worth $US6 billion globally by 2025.To keep up with the competition, eBay just eliminated its 10% fee for North American sneaker sellers on items over $US100.
To be sure, many sneakerheads recommend StockX and GOAT as resources for following trends in the sneaker market. Business Insider recently spoke to a sneakerhead who said his fleet of four stores earned $US6.9 million in sales last year, and he recommended that novice sellers use these websites to get familiar with the industry.
But some sellers are staying away from the marketplace when it comes to sales. Ethan “Moose” Read is a successful sneaker reseller who avoids selling on marketplaces like StockX and GOAT. He says he made $US225,000 reselling sneakers last year through his website Moosetraxshop.com, his social media accounts, and at various sneaker events, as well as through the SneakerCon app.
“I’m not trying to take shots anywhere at StockX,” Read said. “But at the same time it’s like, we want to have our clientele, the people that come shop with us consistently, not selling on that app.”
Here are the three main reasons Read says he stays away from resale marketplaces like StockX and GOAT.
1. It takes longer to use these apps
Read says that having websites that act as middlemen and authenticators makes the whole process longer.
“It’s a long process, and it’s like, I like to get my stuff done,” Read said, adding that he has a lot of customers who request and pay for overnight shipping.
Read said people generally want their shoes right away, which makes selling through Facebook and Instagram a better bet.
2. They charge fees
StockX charges a 3% payment processing fee as well as a transaction fee which is determined by the individual seller account and the item being sold.
GOAT charges a seller fee as well as a commission fee that can be around 9.5%.
eBay just eliminated its 10% fee for North American sneaker sellers on items over $US100 in an apparent effort to win over more sneakerheads to sell on its website.
The fee SneakerCon app charges a standard 8% fee, which Read says makes it a pretty good alternative to StockX and Goat.
3. There is little room to build a brand on apps like StockX and GOAT
Read says this is a major reason he avoids selling sneakers through these marketplaces.
“It’s really about brand awareness,” Read said. “If I sell on that app, no one’s going to see that I’m selling it, and I can’t grow my business from there.”
StockX and GOAT keep the seller’s identity a secret, so there is little room to grow a customer base of people who will shop with you regularly.
Another reason Read recommends the SneakerCon app is that customers can see who is selling the shoes, which helps sellers build up their brand and client loyalty.
Business Insider Emails & Alerts
Site highlights each day to your inbox.