BERLIN (Reuters) – StockX, which is an online marketplace that specializes in the sale of limited-edition sneakers, and has raised $110 million from investors to fund its expansion and a poached Scott to Appear on eBay as its new chief executive said on Wednesday.
FILE PHOTO: The Adidas limited-edition sneakers that will match up with the Berlin subway, a seat design, and an annual travel pass are shown in the “After” shoe store in Berlin, Germany, January 16, 2018. REUTERS/Fabrizio Bensch/File Photo
Founded in cleveland in 2016, StockX has now grown to more than $1 billion worth of products per year at the site, and the expansion of the sneakers in the watches, handbags as well as street wear, and the opening of the brick-and-mortar stores, starting in New York city.
It is said that the new funding round, with investors including DST Global, General Atlantic, GMF Capital, PE, and Battery Ventures, on the value of the company in excess of $1 billion.
It will use the investment to expand internationally, particularly in Europe and Asia, the addition of more categories, such as collectible toys, and will open stores in key markets.
Prior to his role as senior vice president of the united states on Thursday, Cutler was president, the ticket marketplace, StubHub, and the executive vice-president of the New York Stock Exchange, where he will be in charge of the tech offerings, such as LinkedIn, Twitter, and Alibaba.
He takes over from StockX, co-founder, Josh Luber, who will continue to be a part of the management of the company and the team.
“All we did was copy how the stock market works, and apply it to new materials,” Luber told Reuters during a visit to Berlin last week. “The concept of the retail price of it is old-fashioned for a specific product.”
StockX, it is able to respond to a trend for brands such as Nike and Adidas to release a limited number of high-end sneakers, which are sold as collector’s items, at a much higher price than in the store.
“We have been in this category (eBay). How do you do with the other categories, and how to build it, and how do you get to work with brands to move into the retail sector,” Luber said, adding the model will work for all of the products with a certain diet.
But currently it accounts for about three-quarters of its sales, in StockX with street wear to create a maximum of 20 percent of the time.
StockX will charge a commission, ranging between 9 and 14 percent, depending on the category of the products sold on the site and run the verification centres, to make sure that the products are not counterfeits before they are shipped to the buyer.
Reporting by Emma Thomasson; Editing by Mark Potter