I had 382 transactions in August 2021. The wholesale channel shifted as I didn’t want to take on inventory and sit on it for two weeks. The market moves quickly and I lost that wholesale deal. Just because I’m out of the biz for a while, doesn’t mean the world stops turning. In September, I’ve adjusted considerably and the result has been eye opening and definitely good for business overall. That’s moving ahead a month. Let’s get back to the 382 pair sold.
eBay doesn’t factor in to my sales unless, I have a sneaker that is returned due to a damaged box. I don’t include my eBay channel in this report, but I need to deliver analysis. The shoe I sold on eBay was returned by StockX for a damaged box:
Size 11 – W Nike Dunk Low DD1503-100 Sail/Coast-University Gold
Quantity sold Total sales Taxes and government fees Total selling cost Net sales
1 $310.30 $20.30 $30.11 $259.89
At the end of the month I was charged an additional $9.74 for shipping. This means on the entire transaction I grossed 250.15. How does this compare to StockX?
On StockX right now the pair is selling for – $296.00
Because I’m a level 5 seller my Transaction Fee (6.0%) -$17.76
This charge is always there: Payment Proc. (3%) -$8.88
I think this will change very soon and the seller will be charged. Shipping: Free
Total Payout: $269.36
Last month, I thought I would be working with a particular third party platform, but that relationship ended. The topic there was the weakness in StockX. The only weakness I saw was their requirement of a perfect box. Because when you consider that on eBay, if it’s not a men’s shoe, the no fees aspect is smoke and mirrors and does very little to sway a seller. More important, when I get to the tier breakdown, you’ll find that a considerable percentage of sneakers sold on StockX happen at the low-mid tier which is under 100 where there are always fees on eBay. If StockX simply adjusts their policy on perfect boxes, they could add an additional stream of revenue. This is important as the company moves towards an IPO.
Back to eBay, there are inherent problems in the way product sells on the platform vs StockX. Because I’ve earned a Seller Level 5 on StockX, I’ve earned early payout and discounted fees. The discounted fees only adhere to any shoes sold for over 150.00 dollars. The minimum fee is always 9.00 dollars, which means at the least you’ll be charged 8% on all sales under 150. Get it? eBay doesn’t have an immediate payout option. eBay also requires a seller to add additional work in bookkeeping (keeping track of shipping fees until the end of the month). Could you imagine selling 300 shoes and having to input your shipping costs every time you make a sale? It isn’t difficult, but at an average of 10 per shoe, that 3000 dollar bill at the end of the month would be jarring.
What’s the bottom line here? StockX fees are better than eBay. The ability to sell quickly gives StockX the immediate edge over eBay and because of this, eBay will find itself continuing to fall behind. The channel has its own data, but using my own information, I have an average transaction of 118 per pair. To continue this comparison let’s look at my pricepoints. Usually, I utilize this breakdown:
Pricepoints are below:
Low – $1.00 to $60.00
Mid – $60.01 to $120.00
High – $120.01 to $180.00
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In this report, I’m shifting this to kind of match with eBay’s fee structure of zero fees on men’s footwear sold over 100.
Pricepoints are below:
Low – $1.00 to $99.99
Mid – $100.00 to $150.00
High – $150.01 to $200.00
You must be
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Important Points:
When comparing third party platforms, since I’m now utilizing Amazon again, my personal preference for holding inventory is Amazon. My preference for immediate sales is StockX and eBay is a last resort, even with the majority of my sales taking place in the mid to premium tier. In the consignment shop, I can immediately pay sellers and recoup all of my funds on a daily basis. This enables me to purchase more product for inventory if I desire and I don’t have to deal with the issues of poor reviews, returns or chargebacks on eBay and Amazon. While this month’s report isn’t written in the same manner I typically use, it does provide a discussion on the health of resale and it allows for a discussion on StockX’s impending IPO. StockX has its flaws, but I think the site has insulated itself against losing sellers. eBay appears to be diving more into driving traffic as opposed to educating, which is a mistake. The 44% in sales under 100 all on Nike product is an extremely important note for this section. eBay appears to have focused on alignments with Nice Kicks and a variety of YouTubers. Those entities focus solely on the high-premium marketplace. eBay doesn’t charge fees on men’s shoes at those pricepoints. They have overlooked 44% of the marketplace in a micro to macro comparison. StockX on the other hand has ensured that they maintain the same fees, even while making sellers happy about the potential for a new seller level. StockX is insulating in preparation to grow, eBay seems to be maintaining as opposed to finding a way to add more sellers. Amazon, and this is for September, is a machine and its unmatched for profit margins and sales. In the last 10 days on Amazon I’ve sold 100 pair of shoes. As I lost my big wholesale account, I added this channel into the mix. Amazon has a huge learning curve and my account is over ten years old there. The bar to entry for a new seller makes Amazon a non-factor for new sellers. Ranking all of the platforms, StockX has the easiest access to adding sellers and that’s a very important factor as new third party platforms like Tradeblock enter the fray and continue to chip away at eBay’s marketplace with an interface that captures the experience at Sneakercon and turns it into a digital experience.
On to Part 3