Sneaker resale platform StockX says it turned away $100 million in fake items in 2022

  • StockX says it rejected $100 million worth of counterfeit products from resellers in 2022.
  • The new data comes as StockX attempts to win back consumer trust in its authentication process.
  • The resale marketplace said in its annual report that it recorded record revenues in 2022.

Loading Something is loading.

Thanks for signing up!

Access your favorite topics in a personalized feed while you’re on the go.

StockX says it rejected $100 million worth of counterfeit products from resellers in 2022.

Overall, the resale platform turned away over 330,000 fake items shipped by sellers for verification last year, according to its latest annual marketplace report

The new data comes as StockX attempts to win back consumer trust in its authentication process amid an ongoing legal battle with Nike over StockX’s use of NFTs and claims by the sportswear giant that StockX authenticates fake shoes. 

StockX currently allows users to buy and trade digital versions of shoes like Nikes, Crocs, and Adidas. In addition to the NFT, or non-fungible token, buyers also own a physical version of the corresponding NFT or shoe that is stashed away in the StockX vault. 

More damaging to StockX’s reputation with users, however, is Nike’s complaint that the secondary marketplace authenticates and ships fake sneakers. Nike amended its 2022 lawsuit last spring to say it purchased four counterfeit shoes on StockX on separate occasions, including a pair of “Patent Bred” Air Jordan 1s.

Verification stats did not appear in StockX’s 2021 marketplace report, but the company has called out the number of counterfeit pairs spotted in recent quarterly reports.

A StockX spokesperson told Insider, “Verification has always been at the core of our business, so this isn’t the first time we’ve provided metrics on the topic.” StockX currently inspects over 1 million items a month at its 13 authentication centers worldwide. 

The upcoming trial involving Nike and StockX is currently in the discovery phase. But StockX CEO Scott Cutler has called Nike’s claims meritless. StockX has also alleged in legal filings that Nike has praised the company’s authentication process in the past and that the sportswear company has failed to identify what it deems to be a counterfeit product

Since the lawsuit became public about a year ago, StockX has shown more transparency about how sneakers are authenticated at its verification centers. The company even posted a YouTube video last summer describing how it verifies the aforementioned “Patent Bred” Jordan 1.

Top-selling sneaker brands in 2022

In its annual report this week, StockX said the company generated record revenues in 2022, thanks to its expansion into new categories like accessories and collectibles. StockX declined to disclose specific revenue figures. 

“Our seller community thrived this year, and even with a tough economic backdrop, demand for current culture products didn’t waver,” Cutler said in a press release. “2022 brought new wins for our business as we posted record revenue and trades and served our community of buyers and sellers around the globe.”

Nike, Jordan Brand, Adidas, New Balance, and Converse once again were the top selling sneaker brands on the platform. Salomon and Hoka were among the fastest growing brands, each growing over 700% in terms of number of sales, or trades, in 2022.

StockX predicts soccer style shoes like the Adidas Samba and late 2000s running sneakers will be popular on its marketplace in the new year. Searches on its site for the Samba and Adidas Gazelle increased triple digits in 2022. 

Related Posts

Lascia un commento