StockX newest fee hike reveals why sneakerheads are pivoting to other resale platforms like eBay and Instagram to buy and sell sneakers

Moose ReadReseller Moose Read
  • StockX will be adding a new 3% processing fee for buyers starting April 22, 2020 in addition to its existing fees for sellers.
  • The move received backlash on social media from members of the sneaker community, many of whom have already turned away from selling on StockX because of the fees.
  • In a statement to Business Insider, a StockX spokesperson said, “StockX customers are, and always will be, the heart and soul of our company – this update was put in place to best serve and support the high-touch customer experience we afford our millions of buyers and sellers across 197 countries and territories globally.”
  • Visit Business Insider’s homepage for more stories.

StockX is making another move that might push some sneakerheads to other sneaker platforms for buying and selling sneakers.

The online sneaker marketplace announced Wednesday that a new 3% processing fee for buyers will be added to orders starting April 22. This fee comes on top of the already existing fees for users on the site, including 3% payment-processing fee and transaction fee that is determined by the individual seller account and the item being sold.

The announcement of the new fee received backlash on social media from members of the sneaker community, many of whom have already turned away from StockX because of the company’s comparatively hefty fees.

In a statement to Business Insider, a StockX spokesperson said, “StockX customers are, and always will be, the heart and soul of our company — this update was put in place to best serve and support the high-touch customer experience we afford our millions of buyers and sellers across 197 countries and territories globally.”

While many sneakerheads recommend StockX as a resource for following trends in the sneaker market and to sell shoes, some sneaker resellers have pivoted away from the platform, in part, because of the fees.

Ethan “Moose” Read, a successful sneaker reseller who said he made $US225,000 reselling sneakers in 2018, previously told Business Insider that avoids selling on marketplaces like StockX for a few reasons, including the fees. Instead, Read runs his business through his own website, MooseTraxShop, and his social media accounts, as well as at various sneaker events.

Other resellers have turned to Instagram to sell their merchandise, which comes with no additional fees at all.

eBay, which bills itself as the originator of the sneaker resale game, made a move to win over price-conscious sneakerheads when it eliminated its 10% fee for North American sneaker sellers on items over $US100 in December.

As the top sneaker seller on eBay, Chris Holbrook (perhaps better known as Sneaker Jesus) brought in over $US1.5 million in sales in 2019, 90% of which were made through eBay.

“We’ve dabbled in other sneaker platforms but frankly avoid selling there as much as possible,” Holbrook said, adding that platforms like StockX and GOAT do not allow the seller to build up a brand in the way that eBay does, which is a big reason he avoids selling on them.

eBay, which sold more than 5.7 million sneakers in North America in 2019, appeared to troll StockX’s latest fee announcement on Twitter on Wednesday.

With sneaker resellers and buyers already turning from StockX, the introduction of the platform’s new fee is unlikely to do the resale marketplace any good in the eyes of its users.

“Personally I have seen many people visibly upset about [StockX] raising fees,” said sneaker reseller Jeremiah Jiang, who said he made $US350,000 in sales reselling sneakers in 2019 and uses StockX regularly, despite the fees. “I think this [will] slowly stray people away from StockX and encourage them to buy from independent sellers on Instagram due to them not having to pay extra fees.”

Read StockX’s full statement to Business Insider:

At StockX, our objective is to deliver a superior marketplace experience built on our core brand pillars of trust, authenticity, and anonymity. As our marketplace continues to grow, so do our investments in the platform and the costs required to improve the level of service to StockX customers worldwide. StockX customers are, and always will be, the heart and soul of our company — this update was put in place to best serve and support the high-touch customer experience we afford our millions of buyers and sellers across 197 countries and territories globally.

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