- What is StockX, and how does StockX work?
- How does StockX make money?
- Commission Fees
- StockX’s profit and revenue
- What is the StockX business and revenue model?
- StockX’s funding and valuation
How does StockX make money? Here is a full breakdown of their main revenue stream, as well as the StockX business model, their profit and revenue, and how StockX works.
What is StockX, and how does StockX work?
StockX is an online marketplace that facilitates auctions between sellers and buyers for the purchase of limited edition or high demand items such as sneakers, collectibles, and more.
How StockX works is: Buyers either place a bid on the product or choose “buy now”. Once purchased, the seller will then send it to StockX to authenticate the item. StockX will then ship the item to the end buyer once it’s authenticated.
Some of StockX’s competitors include GOAT, Grailed, Stadium Goods, and other online marketplaces for limited edition or high demand items.
How does StockX make money?
According to a StockX Press Release, the company facilitated more than 7.5 million trades with over $1.8 billion in gross merchandise value (GMV) on the marketplace. So how does StockX make money off of all those sales and gross merchandise value?
Below is a breakdown of how much money StockX makes and its revenue model. Including all revenue streams and how much they charge for their services.
Here is how StockX makes money (in 2021):
StockX has a revenue model that makes money in only one (1) way – commission fees.
#1. Commission Fees
StockX makes all of its money through commission fees – all $400 million of StockX’s 2020 revenue.
As mentioned above, StockX facilitated more than 7.5 million trades totaling over $1.8 billion in gross merchandise value (GMV) on the marketplace in 2020. Of which, StockX earns a commission fee on all of it.
Commission fees vary between 8% to 10% depending on the seller’s level. How it works is, there are five (5) seller levels that each require a certain amount of sales to reach the next level. The higher the level, the better the commission rate the seller receives on the sale.
StockX Seller Fees:
- 8% to 10% of sales price
StockX’s profit and revenue
In 2020, StockX reported $400 million in revenue.
Note: Because SoleTrade, LLC (StockX) is a privately held company, they are not required to make their annual reporting, such as Form 10-K’s, pubic.
What is the StockX business and revenue model?
StockX makes money through a few revenue models that they combine within their company, they are:
- Commission based business model