StockX has released its latest Verification Report, highlighting the platform’s recent advancements in product authentication and its impact on global consumers.
Check Out These Resources
- Do you need a business bank account for your online business? Take a look at our review of the five best bank accounts for sellers, some of which are free with no minimum balance or deposits. [sponsored]
- Boost your social media engagement with Publer. Learn how you can save time writing engaging content faster with AI. [sponsored]
- Could your online business use capital for growth? Here is a primer on revenue-based loans, and how they work.
The report, known as “Big Facts: The Verification Report,” provides a comprehensive overview of the company’s rigorous review process, shedding light on the company’s efforts to ensure quality and authenticity for its users worldwide.
According to the report, StockX has rejected nearly $90 million worth of products in the past year alone due to failing to meet the platform’s strict verification standards.
The report also revealed the primary reasons for product rejections during the authentication process, with manufacturing defects accounting for 27% of the rejections, followed by fake products at 20%.
Over the past year, StockX’s team of global authenticators has successfully prevented approximately $30 million worth of counterfeit sneakers from being traded on the platform.
This highlights the company’s commitment to protecting consumers from unknowingly participating in the counterfeit market, which has grown to approach $500 billion industry or 2.5% of world trade, according to the Organization for Economic Cooperation and Development.
To bolster its verification process, StockX has expanded its use of machine learning and incorporated technologies such as RFID and QR codes.
These technological advancements provide additional data points for the company to leverage in distinguishing between high and low-risk products, ensuring a more robust authentication process.
The report also reveals that StockX has significantly expanded its operations in the past year, opening three new authentication centers worldwide and adding over 180,000 square feet to its global footprint.
This expansion aims to enhance the company’s ability to handle increased demand while maintaining its commitment to delivering a top-notch experience for buyers and sellers alike.
StockX CEO Scott Cutler expressed his pride in the global team and their dedication to providing millions of customers with secure and authentic products at the right price.
“Knowledge is power, and this report offers visibility into our verification process and our efforts to deliver a best-in-class experience to buyers and sellers around the world,” said Cutler.
Paul Foley, the head of brand protection at StockX, acknowledged the growing sophistication of counterfeiters and emphasized StockX’s continuous efforts to stay ahead.
He noted the significant investments made by the company in “evolving our use of technology, enhancing our systems, and employing industry experts in every corner of the world.”
The report also unveils the most frequently counterfeited products encountered by StockX authenticators in the past year.
While high-value items were traditionally targeted, the latest data indicates that even lower-priced, high-demand products are not immune to counterfeiting.
The report highlights two examples – the Nike Dunk Low Retro White Black Panda sneakers and the Telfar Shopping Bag Medium Black – both popular counterfeited items with average resale prices of under $200 and $300, respectively.
Over the past 12 months, StockX reported that:
- Nearly $90 million of products rejected that did not meet verification standards.
- Authenticators stopped nearly 300,000 individual products from trading on the platform.
- Almost $30 million worth of fake sneakers never made it on the platform.
- On average, 1 million products go through the StockX verification process every month.
For comprehensive details on StockX’s Verification Report, please follow this link for further information.
Additionally, the company recently announced a reduction in selling fees effective July 1. This move aims to enhance affordability for sellers, enabling them to broaden their business or pursue their passion on the platform.
Subscribe to Our Newsletter
We do not sell your information.
You can unsubscribe at any time.
Head over to our Facebook Group for Small Business Marketplace Sellers and interact with us and other small business owners. Follow us on Facebook, Twitter, or LinkedIn to stay up to date with relevant news and business insights for your online business.