Today I am going to talk about the business and revenue models for the online business call StockX.
StockX is within the industry of e-Commerce as it is an online based business and has its headquarters located in Detroit, United States of America. The company was founded by the former names of Dan Gilbert, Greg Schwartz, Josh Luber and Chris Kaufman in 2015. With their current of goal of making a sneaker resale market as the main service.
Business Model:
A business model is a basic overview of how a company works which involves the source of revenue, identifying its products that can be consumed, extended services and customer target markets (Chaffey & Ellis-Chadwick, 2019, p. 164).
StockX is an online sneaker platform which is reseller based, the general conduct of a purchase is formulated by a reseller wanting to sell shoes that are generally limited online to a consumer who is looking for a particular product. This process is a way of getting products to consumers for a fair price, but sometimes it is more expensive because the item is either so limited that you can’t find them anywhere instore or really expensive (Nytimes.com, 2019).
StockX online business is a legitimate site with legitimate products, the business has real specific people who asses the shoes to see whether the shoes are authentic or not. If they are not real the product will not be available on the website as a protocol of security and fraudulency. StockX doesn’t only focus on sneaker as its main purpose, they have extended their overall service to target customers and consumers who want to look for products such as Watches, Handbags, bags, Clothes and Accessories (StockX, 2019).
In terms of their specific targeting strategy StockX targets customers who are in the need of limited and luxurious products, so the same target markets as, Gucci, Louis Vuitton, Supreme, Off-white, Palace, Adidas (Yeezus), Nike and much more. Therefore, the general market is very competitive but by having products for reselling prices customer will come to the business and purchase products if they really want them the age group of target customer would be the ages of 18 – 30.
Revenue Model:
Revenue model is how the business describes their current methods and processes when generating income for their business (Chaffey & Ellis-Chadwick, 2019, p. 165).
As I have said at the start StockX is one of the most popular online business’s when it comes to reselling products within the reselling industry. The way they also market themselves is through social media platforms such as, Facebook, Instagram, YouTube and their own StockX application (Nytimes.com, 2019).
StockX in terms of generating income for the company focus mainly in the sales driven through the e-commerce site. The means of the platform works similar to a stock market, where buyers place bids and sellers place asks. When a bid and an ask match, an item is sold (Nytimes.com, 2019).
StockX derives through word of mouth through other companies like Nike and Adidas as these are the most brands that are sold everyday through the online website. Apart from generating money from off their website, StockX is a very successful business as many retailers and media owners are paid to promote StockX so that the customers know that this service is out there on the web. After a $110 million round of Series C funding in 2019, the company is valued at over $1 billion (Finance.yahoo.com, 2019).
So, in Conclusion this was my critical analysis of StockX in terms of their business and revenue models as you can see above this is very interesting as to how this online business works and became so successful.
References
Chaffey, D., & Ellis-Chadwick, F. (2019). Digital Marketing Strategy, Implementation and Practice (7 ed.). (T. Hill, & E. Srebernik, Eds.) New York: Pearson. Retrieved 08 15, 2019
Finance.yahoo.com. (2019). Yahoo is now part of Oath. [online] Available at: https://finance.yahoo.com/news/stock-x-is-now-valued-at-over-1-billion-193610129.html [Accessed 4 Sep. 2019].
Nytimes.com. (2019). A Nasdaq for Sneakerheads? StockX Aims to Tame ‘Chaos’ of Luxury Market. [online] Available at: https://www.nytimes.com/2018/07/06/business/smallbusiness/stockx-sneakerheads [Accessed 4 Sep. 2019].
Nytimes.com. (2019). Buy Low-Tops, Sell High-Tops: StockX Sneaker Exchange Is Worth $1 Billion. [online] Available at: https://www.nytimes.com/2019/06/26/technology/trading-sneakers-stockx [Accessed 4 Sep. 2019].
obby1000 and obby1000, H. (2019). This Is What the Future of Sneaker Reselling Looks Like. [online] Highsnobiety. Available at: https://www.highsnobiety.com/p/sneaker-reselling-future/ [Accessed 4 Sep. 2019].
StockX. (2019). StockX. [online] Available at: https://stockx.com/how-it-works [Accessed 4 Sep. 2019].
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