Resale Report and Analysis for May 2021

This is the report for May 2021. I made a lot of adjustments in May. Access to my primary stream of shoes shifted. Stores still weren’t getting a lot of releases on time, but this doesn’t matter because with discounts being removed by stores like Foot Locker, and new restrictions being reinforced on buying limits, and with so many new buyers now participating in resale, using retail for the acquisition of sneakers is finally a non-factor outside of limited, hyped releases. I’ve always stated that once a buyer is unable to walk into a traditional retail location and work on the arbitrage model, resale would take a hit. Nike has contributed to this by utilizing their Edit to Amplify model.

Their willingness to focus on the Air Jordan 1 and Dunk has contributed to other releases the brand has made, that are also retros, sitting on the wall. In Kid’s FootLockers and other retail locations there are now an abundance of Jordan 3s, Jordan 8s and other models. Even the Paris Jordan 7 can still be found in retail locations. I overheard a customer calling the shoes “bricks”; a term signifying that it’s not an in-demand model. The Jordan 7 Paris was not made in large quantities, but it didn’t sell out immediately. A similar situation happened with the May 5th drop, the Electric Green Jordan 6. The shoe is available after the release day. Buyers will grab them and sit, hoping the shoe has an increase in price in a month or two, but the reality is they will have to wait at least two years to reap the benefit of a price increase like the Infrared 6, but this isn’t a classic color and I don’t expect it to hit any more than 290 tops.

arch sneaker videos.
Sales on StockX were relatively flat. I made almost 40K in May, gross, but the margins were horrible. I wrote this article to discuss the slow down:

Is StockX in the 4-6 year Slump Window?

In May, I was able to focus on a different strategy for a sales channel I stated I wouldn’t use anymore. I reopened my Amazon Seller Central marketplace. I’ve dabbled with the marketplace, but there are so many issues there, it can place you in a difficult situation as a seller. My store on Amazon still maintains a 5-star rating with over 600 reviews. I haven’t actively and consistently utilized the platform since 2016. I left the channel because at the time Amazon was flooded with fakes and the consumers were entitled. Last month, I was able to get a detailed understanding of how Amazon works in contrast with StockX and eBay.

Amazon Seller Central HIGHLIGHTS

  • Amazon buyers purchase “bricks” at a considerable markup over StockX and eBay.
  • The average sale price of an all white women’s Air Force 1 is 119 dollars a pair. That’s almost 30 dollars over SRP. StockX has an average price of 88 dollars. This price trends up once the shoes are no longer available from bulk sellers.
  • The return rate that forced a lot of sellers off of Amazon Seller Central has declined considerably. Is this because shoppers know their sizes better? Or is it because Amazon has placed restrictions on excess returns? In the last 24 days, I sold 90 pair (pictured at the lead of this post). I’ve had 10 return requests. 11.11% returns vs 30% in 2015. Amazon customers are very slow to return shoes. This is a major problem. It can lead to an account going into the red after payout.
  • Payouts on Amazon Seller Central are very slow. StockX and eBay are much faster. Amazon pays out in the same way they always have, every two weeks, but they hold payments until the return period has expired. Return periods can go from 14-30 days

The two pictures used above give a lot of details. Let me explain. The picture above the fold shows the time frame of sales on Amazon Seller Central for the JmksportStore Online Shop. In contrast I listed the shoes available on eBay and on StockX. I didn’t sell any of the shoes on those platforms. StockX’s prices were too low and eBay the sales were non-existent. In 24 hours from May 14th to May 17th, I sold 22 pair at an average price of 129 with taxes. Note above that May 31st Amazon paid me $406.59. I have not been paid the additional amount yet. The Account Reserve currently sits at $8,165.03. That isn’t scheduled to transfer until June 14th. It will take 1 month to get the money I made on Amazon in May. I could initiate an early transfer, but I’ll be charged for my own money. This will undoubtedly persuade the average seller from utilizing the platform, although the money earned is considerable.

StockX remains the best platform to sell on, but if eBay makes adjustments, they could effectively disrupt StockX. I don’t think those changes will happen. The site is far too big to make the adjustments needed to one section of product. Both eBay and Amazon are established and StockX has shown a willingness to adjust quickly and often. Their interface during May went through two considerable upgrades, but the dutch marketplace has extreme issues and I’m positive they are seeing the issues with the site which is why they are rolling out other markets adding electronics, collectibles and art. They have also ramped up content creation.

My numbers in May were solid

StockX (income): $38,321.00

Amazon (income): $406.59

GOAT (income): $609.39

Commissions (shoes sold for other clients): -$26,573.00

I sold my first pair of kicks on GOAT after playing around with the app for years. I had a pair of Air Jordan 1 Retro Twist. The shoe, in perfect condition, sells for 1000 a pair on listings in various 3rd party platforms. My pair was a B Grade. I sold the shoes twice on eBay:

blankThe result was two cancellations. This is a major issue for eBay. Buyers can disrupt a listing by buying and then the system allows them 7 days to purchase the product. This leaves the seller in a position of holding inventory for an extended period of time and then having to cancel the order. I sold the shoes for below market value and there aren’t any repercussions for the seller. The lack of eBay’s ability to auto-withdraw payment on a Buy Now purchase places it behind StockX. StockX doesn’t allow B Grades on their platform. This is a major drawback for StockX. I took the time to go through the lengthy process of picture taking inside of the app on GOAT and listed the Twist 1 on GOAT:

Until this point, I didn’t really want to extend my sales to other platforms, but the issues with StockX, the multitude of returns on shoes because of boxes that have torn edges or boxes that are damaged in the process of shipping to the company, forced me to shift. Sales were also very slow on the platform for GR sneakers. The shift to new platforms, was eye-opening. GOAT is a viable platform for high end sales, but it is a confusing and slow process to list. The ease of use is fine if you have a pair of hot shoes ready to sale, but StockX’s one listing for all, like Amazon, creates an easy business situation. Amazon’s drawback is basic, you have to keep inventory. eBay is the same as Amazon except it has the most problems of all of the 3rd party platforms including the inability to transfer to PayPal. This shouldn’t be an issue, but I have to imagine there is a segment of the population unwilling to connect their eBay accounts to their bank. To be honest, there is a bit of underlying class and race issues in this as well. One of the quickest means of starting a business is selling what you have in your house. The unbanked population skews heavily towards Black and Brown populations. These unbanked customers can’t sign up for eBay at all. These communities are becoming digitally inclined with Cash App, and there is opportunity there for a 3rd party willing to figure it out.

SRR & Analysis [email protected]

Read older reports below or download the SRRRA from 2020.

Sneaker Resale Report & Analysis 1st Third 2021 January to April 19th – Part 1

Sneaker Resale Report & Analysis 1st Third 2021 January to April 19th – Part 2

Sneaker Resale Report & Analysis 1st Third 2021 January to April 19th 2021 – Part 3

Sneaker Resale Report & Analysis 1st Third 2021 | Top 10 Sneakers Sold – Part 4

Sneaker Resale Report & Analysis 1st Third 2021 | Website Traffic Analysis – Part 5

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