Consumers are flocking to online resale marketplace StockX to find the latest and greatest offerings from vintage sneakerheads, streetwear sellers, and all other sorts of collectors.
StockX CEO Scott Cutler sits down with Brad Smith on Wealth! to discuss trends in the resale space and what they are indicating about consumer behavior heading into the holiday shopping season.
“We’re obviously in a challenging macro environment, but I think things are positive going forward. We’ve had four years of interest rates increasing inflation, and now I think as consumers are looking forward, it’s much more optimistic,” Cutler says.
Cutler calls the state of the resale market as “super dynamic,” noting tremendous shifts in market share in 2024.
“And you see this also reflected in the public markets. On the one side, you’ve got the challenges associated with Nike (NKE), which has really been driven by restocks, oversupply, [and] a lack of innovation. But if you look at the price performance in the resale markets as well as market share gains, where is it happening? Adidas (ADDYY), Asics (ASCCY), Deckers (DECK), which is Hoka and Uggs, and Crocs (CROX).”
Cutler says that StockX reflects the dynamics of the resale market in its digital marketplace, with resellers “finding opportunities between wholesale and retail” to offer attractive prices for buyers.
“In the catalog of StockX, we’ve got hundreds of thousands of product pages across multiple categories in sneakers, shoes, electronics, collectibles, apparel, [and] accessories. And so I think if you’re a seller, you’re really looking for those opportunities for products that you really think customers will be positioned to buy,” he tells Yahoo Finance.
To watch more expert insights and analysis on the latest market action, check out more Wealth here.
This post was written by Naomi Buchanan.
Video Transcript
Resale is extremely popular, both as a side hustle to make extra cash and for consumers looking to buy something for a bit of a discount.
And we want to dive into the state of both sides of that market with Scott Cutler, the CEO of Stock X coming to us live from Robin Hood’s Summit in Miami Florida.
Let’s start with the state of the consumer Scott.
It’s great to see you.
Great to have you back on the program.
And I I know you have a trove of data at Stock X that you’re able to leverage and kind of read through and get a sense of where the consumer spending or even pulling back or looking for deals.
What are you seeing in your assessment?
Well, we’re obviously in a challenging macro environment, but I think things are positive going forward.
We’ve had four years of interest rates, increasing inflation.
Uh And now I think as, as consumers are looking for it, it’s much more optimistic.
Um And I certainly look at that in preparation for the holiday season, but also as we provide a platform for people to trade, what they love with that in mind I mean, we were looking through even recently some of the results of the the taking stock with teen survey that Piper Sandler puts out and really seeing some of the hot brands.
And I wonder how you’re seeing that kind of trans transpired through to, to your platform brands where consumers might be pushing back and and where the trends might be moving towards.
And you’re seeing some fluctuations perhaps even on your site.
So to the state of the resale market right now is super dynamic.
This year, we’ve probably seen the biggest shifts in market share that we’ve ever seen at least in stock exits history.
And you see this also reflected in the public markets.
I think on the one side, you’ve got the challenges associated with Nike, which has really been driven by restocks oversupply a lack of innovation.
But if you look at the price performance uh in the resale markets as well as market share gains.
Where is it happening?
Adidas Asics Deckers is Hoka and Uggs um and, and Crocs.
And so you’re seeing really the performance of these other brands take up the market share losses of others.
It’s not all bad news for Nike.
I think what we see working in the resale market particularly in sneakers is performance, basketball on the back of lebron Katie book one, Sabrina um as well as in the running category.
And so it’s a dynamic time always in the resale marketplace.
But again, these shifts have been pretty significant.
Sabrina calling game last night.
We certainly watched that and saw that in the W NBA finals.
Of course, much more to come there.
Much more to come as well for power sellers that we’ve been tracking within this industry and, and switching gears and really focusing on some of those resellers for those looking to make extra money selling their collectibles or sneakers is the cautious consumer weighing on some of their potential profits right now, as those consumers are, are looking for anywhere where they can offset some of the pricing pressures that they’re seeing elsewhere.
So stock X is a marketplace that reflects the dynamic nature of a real time marketplace in, in all of the categories that we trade.
Um And so, for example, right now, uh overall on the on the site, about 60% of the things that are trading right now are trading below retail, but that’s not all bad news because a lot of the sellers and stock exit a platform that provides that economic opportunity.
If you’re selling those sellers are are finding opportunities between wholesale and retail.
Uh They’re certainly focused on the items that consumers have the most attraction to.
And I think particularly in the lead up to the holiday in some, in some categories like electronics, you’re gonna see really active dynamic pricing potentially way above uh uh retail prices, particularly around Sony in their mid cycle playstation five or the 30th edition.
I think that’s an example of a product that will probably trade well above retail.
Uh and those are uh sellers or resellers that will take advantage of those opportunities um that consumers are going to be in high demand for those items.
You know, that that’s a great point.
And so when you think about and, and the fact that you are more than just apparel and foot where you, you mentioned, you’ve got things like jewelry, you, you’ve got things like electronics as well on the platform.
What would be your top tips for people who are looking to make sure that they can successfully be sellers of either inventory that they might have bought, haven’t worn, looking to sell to someone else and and ultimately make sure that they see some success as well.
Along the way in the catalog of Stock X, we’ve got hundreds of thousands of product pages across multiple categories in sneakers, shoes, electronics, collectibles, apparel, accessories.
And so I think if you’re a seller, you’re really looking for those opportunities for products that you really think customers will be positioned to buy.
And stocks were really trying to unlock the opportunity also to be able to provide buyers with the opportunity to get that product very quickly.
And so we launched Express Ship as an example.
And here we have items, hundreds of thousands of items that have been provided to us prior to the transaction that are available for express ship so that buyers can get that product in just a couple of days also from a marketplace experience.
And so if you’re a seller, you’ll leverage that offering through Stock X to be able to reach consumers quickly, particularly in the run up for the holiday season.
All right.
Yeah.
And that certainly is expanded uh as well for Stock X here and some of the new partnerships with Walmart.
Congratulations on that would love to check back in on some of the results once we’ve been able to accumulate a few months of that partnership here, Scott Cutler’s Stock X CEO.
Uh, Scott.
Great to see you.
Thanks so much.
