StockX is a fantastic resale market for trading branded items, including authentic sneakers, watches, and clothing, among other luxury goods. The platform is easy to use, and anyone can use it to trade. However, before you start trading on StockX, it is essential to understand how much the platform takes in 2022 and other dynamics.
StockX Fees for Buyers
StockX charges buyers in two ways: a deposit fee and a service charge toward shipping costs.
The deposit fee is 3% of the purchase price, excluding shipping charges. If you back out of the deal before it ships, your deposit will be refunded automatically. Otherwise, it will go toward shipping costs incurred between receiving your item and when it ships back to its original owner.
StockX Fees for Seller
StockX allows sellers to list their items on its platform at no upfront cost but charges a 10% commission on each sale. As a seller, you incur a transaction cost worth 10% of the value of the commodity they are trading. The shipping cost for US residents is free, while you may incur a varying fee for shipping to other regions depending on the specific location. As the seller, processing the payment will cost you 3% of the transaction value.
In case of a cancellation, when you, as the seller, failed to mail the purchases, you will be charged a cancellation fee of 15% of the selling price or a constant rate of $15, whichever is higher. The charge is placed if you fail to dispatch the goods 2 days after placing an order. Similarly, the fee is chargeable if your products fail to pass the quality test.
How Does StockX Operate?
It operates in two ways: as a buying platform and an auction platform.
You bid at your price or place an order on the lowest price tag as a buyer. After placing your bid, you will have to wait for the order to be processed. When all verifications have been done, you will receive your ordered items between 7- 12 business days, depending on your location.
Bidding at Your Price (BYOP) – You bid at your price as a buyer. This means you are not bidding against other buyers but rather setting your price for whatever item you're looking to purchase. Once you place a bid, come back later and check the dashboard. You’ll see if your bid has been accepted by someone else or if it's been rejected because there wasn't enough interest on the item yet or because the seller hasn't decided whether or not they want to sell it yet. If your bid gets accepted, you'll receive an email letting you know when it will arrive at your doorstep; this takes between 7-12 business days, depending on where you live.
How to Sale on StockX
Selling on StockX is a pretty simple process. Here’s what you need to do;
- You can create an account on StockX and list your items for sale. You will then set your price constant no matter how many people bid on it during the auction phase. If a buyer bids higher than you've listed your item for, they'll win it at that price. If no one bids higher than your listed price, you'll sell it at that price.
- You can also sell items immediately at whatever price you want (“Buy Now“). This will give you cash right away instead of waiting until someone buys your item at an auction.
- The seller ships the product to the warehouse within 2 business days. If you fail to deliver the product within 2 business days, you will be charged 15% of the value price. If the item fails to meet the authentication standards, you’ll also be charged a fee. If it meets the requirements, you will receive your payment after verification.
- Ensure your account details are verified.
How to Enjoy Lower Fees as a Seller at StockX
The StockX fee structure is simple and transparent. Most fees are charged as a percentage of the total sale price. StockX takes a 10% fee on every sale, which the seller pays. This is one of the lowest fees on the market, with competitors taking upwards of 15%.
Here are easy tips to help you reduce costs while trading on StockX:
- List your item with a Buy It Now price instead of an auction
- List multiple quantities of an item
- Increase your monthly sales volume. This will increase your sales and give you access to lower fee tiers. The fee tiers are called Seller Levels. For example, if you have $100K in monthly sales, you will be in Seller Level 3, and you will be able to enjoy lower transaction fees in the future.
- Sell items such as sneakers below $500 but ensure your transaction is still profitable to you. You will not be charged any fee for sales made below $500. However, if your shoe sells for more than $500, you will pay a 10% fee on the first $500 and 5% on everything above $500.
- Increase your monthly sales by 10x (i.e., $1M). This will increase sales and give you access to lower fee tiers (Seller Levels 2 and 3).
The site also lets sellers set their prices (as long as they meet StockX's guidelines), which gives them more control over the process and makes it easier to sell high-end items that might have been harder to move elsewhere. The transaction fee is based on the selling price of your items.
StockX is a global brand with operations in over 200 countries worldwide. It provides a safe environment for transacting, and its experts verify the products. You might want to participate in the resale market by trading on this platform. Knowing how much the company will make in 2022 will help you estimate your earnings and profits before trading on this platform.