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February 9, 2016Sneaker reselling has long been an unregulated environment rife with the potential for fake merchandise and unfulfilled transactions. With Dan Gilbert’s recent investment in Campless and the launch of StockX, the game—as the kids say—has changed.
First, what is Campless? Launched by Josh Leuber, who has since done a TED talk on the concept and marketplace, Campless analyzes data to give buyers and sellers a better idea of what the marketplace of sneaker reselling is providing, thus reducing the frictions involved in any potential transactions. With roughly $6-7 billion being transacted in the secondary sneaker market, the more information buyers have, the better. And while they trade in sneakers, the company, at its root, trades in data—which is where Gilbert, the majority owner of the Cleveland Cavaliers and various other private investments, enters into the equation.
“With Campless, Josh has created a unique methodology and vision for using data to create products, communities and businesses, Gilbert said in a 2015 press release. “This presents unlimited possibilities, not only within the sneaker industry, but any business aware of the powerful role data plays in their industry. This is exactly the type of high-quality, innovative company that further positions Detroit as a thriving tech hub, and Campless’s decision to set up shop in the city is just another example that the entire country has woken up to the opportunity in Detroit.”
This all dovetails into StockX, the “stock market of things.”
What the stock market offers is a marketplace for this commerce to happen. The stock market doesn’t sell you stock, it just offers a place to buy and sell them. Whenever you’re considering a stock, you can find the full history of stocks from first purchase to the most recent. This ensures that a buyer is fully educated on what they’re getting into and the seller knows what to reasonably ask for.
StockX offers the same thing, but for sneakers.
We know from watching Campless develop over the last four years that they’ve been able to take eBay data to make histories on the value of a sneaker. This information is powerful for both buyers and sellers because information creates an arena where everything is fair. It makes it much harder for anyone to be taken advantage of.
With StockX serving as the intermediary for any transactions, there is no need for interaction between buyers and sellers. For those who invest in the market, there is zero interaction between current holders and those who desire to be. Serving as the exchange, StockX then examines the products, proves authenticity and completes transactions that meet their criteria, or spike those that do not, thus limiting the liability of would-be buyers. “We’re the bridge that you drive over. We’re the bridge. We’re not the destination,” says Gilbert.
Think sneakers are a dumb investment or collectable hobby? Campless’ data sorting methodology can be applied to any other collectible out there—watches, handbags, women’s shoes, comic books, baseball cards, bobbleheads… The list goes on. Think eBay without the potential for fakes and egregious commissions layered on both the transaction and delivery. Think Amazon with some snazzy rebranding and an arena full of like-minded individuals. Like his investment in Genius, Gilbert is putting money in highly-trafficked web properties, taking their approach to data and usability, and plans to make them that much bigger.
At present day, StockX a stock exchange of sneakers. For instance, the Jordan 1 “Chicago,” the shoe to start this entire world in motion, doing so back some 30-plus years ago, re-released in May of 2015 (or “IPOd”) at $160. Just like the current stock market, you get a big-ask spread ($290-400) and a last sale price ($400) that can be broken down by size. There is a timestamped sale history, volume, and charting, just like your NYSE would provide—in this instance, however, the S stands for sneakers.
1 Comment
There are a lot of new apps coming out for buying and selling things, making things easier. Found this: covetly.io It is still in beta version, but it is an app that allows people to trade with other people, in essence exchanging their item for an item of similar value. Big difference with this is that no sales taxes are exchanged because it is a trade not a sale. So if you have a $1000 pair of shoes and you “covet” someone else’s shoes (whether it be 1 pair or 10) you can trade with no cash exchange. Or lets say you have gotten over the shoe thing and now like Paintball. Computer just needs to make the link between our want of paintball and someone else’s want of your shoes.